Is your business name already taken? How to avoid trademark conflicts before launch

Most jurisdictions use the Nice Classification system, administered by the World Intellectual Property Organization. This international framework divides trademarks into 45 classes:

When filing a trademark application with offices such as the European Union Intellectual Property Office or the United States Patent and Trademark Office, applicants must specify the classes in which they seek protection and describe their goods or services.

At first glance, the classification system appears straightforward. However, each class can cover a vast range of activities, and many modern businesses operate across several classes simultaneously.

Trademark classes are intentionally designed to cover thousands of different products and services. As a result, each class can include activities that appear completely unrelated from a business perspective.

Take Class 9, one of the most expansive categories. It includes:

A company that registers a trademark for “downloadable software” in Class 9 could potentially block another company from using a similar name for an entirely different type of software.

For example:

Even though these businesses operate in different niches, they all fall within the same class and may compete for trademark protection.

Trademark law does not simply compare classes. Instead, examiners assess whether consumers are likely to believe two products come from the same source.

This is known as the likelihood of confusion test.

When evaluating a conflict, examiners typically consider factors such as:

Because of this test, two marks in different classes can still conflict, and two marks in the same class may coexist if their goods are clearly distinct.

The classification system therefore acts as a starting point, not a strict rule.

Imagine a startup called “AeroLoom” launches a high-end home textile brand (Class 24: fabrics and linens). Several years ago, another company registered “AeroLoom” for industrial 3D printing software (Class 9).

Even though the names are identical, the products and customers are entirely unrelated. Consumers are unlikely to believe both products come from the same company.

Result: The trademark can proceed and two brands can coexist because there is no likelihood of confusion, despite identical names.

A company called “FitMate” develops a mobile fitness app (Class 9: downloadable software). An existing business already owns “FitM8”, registered for fitness training services (Class 41).

Although the names are slightly different, they are phonetically very similar, and, even though they are under different classes, the services overlap in fitness and health. Consumers could reasonably assume the brands come from the same source.

Result: The trademark office may refuse the new application due to likelihood of confusion, even though the app and the existing fitness services are technically distinct products.

Avoiding trademark problems is not about simply “searching the name.” The real risk usually lies in how broadly earlier trademarks are registered and how your business may expand over time.

The following steps can help you identify conflicts before a brand becomes too expensive to change.

First, trademark conflicts rarely involve identical names. Most refusals and disputes arise from names that are similar in sound, structure, or overall impression. A brand that appears unique at first glance may still conflict with earlier marks that share a similar pronunciation, wording pattern, or visual structure. This means brand availability cannot be assessed by searching for exact matches alone.

The businesses that create trademark conflicts are often not direct competitors. Because trademark classes cover broad categories of goods and services, companies operating in different niches may still be considered commercially related. As a result, a new brand may encounter earlier registrations from companies that operate in entirely different segments of the market.

The scope of earlier trademark registrations is often much broader than the actual products a company sells. Many trademarks are registered with very general descriptions of goods or services, which can give the owner rights that extend beyond a single niche. When a later applicant attempts to register a similar name for a specific product, the earlier registration may still be cited as a conflict because it already claims a wide commercial field.

Trademark classes provide an organizational framework for registering brands, but they do not create rigid boundaries between industries. Because classes are broad and modern businesses often span multiple categories, trademark conflicts frequently arise in unexpected ways.

For entrepreneurs, the lesson is clear: brand selection should always include a thorough trademark search before launch. Understanding how classes overlap and how broad registrations can block new applications helps businesses avoid costly rebranding and legal disputes.