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Legal Difference Between a Brand and a Company?

From waking up in the morning to going to bed at night, every aspect of our life revolves around various brands and companies. From your toothbrush to your mobile phone, you are surrounded by different products and brands. Most of these companies and brands impact our lives on a daily basis. 

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To create an everlasting brand and a company, you must be aware of the legal differences between the two. In this blog, we will help you understand all the legal differences between a brand and a company, as well as the essentials of naming a brand and a company.

They are two different entities that are commonly encountered in marketing. The main legal difference between a brand and a company is that a company is an artificial person in the eyes of the law. It can act as a person and file a case, make an income, or appear in front of statutory authorities, while a brand is an intangible asset created by the company’s performance and values. In other words, a company is an entity that carries out some business, whereas a brand is built by the successful running of a business. 

Legal Differences Between a Brand and a Company

People often get confused between a brand name and a company name. They believe that the company and brand name is one and the same. But that’s not the case; a brand is something that gives people the idea or image of a company through its specific product/service. It is considered one of the most valuable assets of a company.

However, a company name is a name associated with an organisation whose primary focus is to achieve profits in the field of business. It is a registered name of the organisation. Similarly, a company name is an official name under which the sole proprietor or the partners decide to carry any business activity. The company name always ends with a suffix. It must also be noted that various brands can also belong to a single company.

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Differences Between a Brand and a Company

 

Brand

Company

A brand is an identifying symbol, mark, logo, name, or word that people use to differentiate one product from another It is referred to as the organisation or legal entity which engages in business, i.e., produces or sells products/services
It is something that is built through consumer perceptions and expectations Similarly, it is an organisation that markets or produces products or services
One brand cannot be held by more than one company One company can own many brands
A brand name is used to distinguish the products of one company from the other company’s products A company name differentiates one company from the other

 

Essentials of Naming a Brand

A brand name is something that helps the customers identify and differentiate between the products of parent companies from others. Brand names are secured by a trademark or service mark from an authorised agency or a government agency. Additionally, brand names must be noticeable and attractive in nature. A brand name must be chosen by keeping a note of the below points:

  • The brand name must be unique and stand out from the competition.
  • It must be easy to pronounce, remember and identify.

Essentials of Naming a Company

We all have names and it is a part of our identity. Similarly, when a company is formed, a name is associated with it for its identification. This name is called the company name. It contributes to the marketing of the company’s products. While naming a company, you must keep some important points in mind:

  • The name of the company must be unique and it must present the mirror image of the quality of the products.
  • Moreover, the company name must have a creative aspect to catch the attention of the consumers.
  • The company name must be legally available.

Conclusion

We hope you have understood the legal differences between a company and a brand. Sometimes, a brand name is the same as the company name and, at times, a brand name associated with a company tends to get more popular than the name of the company.

For instance, we can take the example of Xerox. We all know that Xerox is the name of a photocopy company. But they have become successful in creating a name to the extent that, instead of saying photocopy, we describe every photocopied document as a ‘xerox’. When we think of photocopiers, the only company that comes to our mind is Xerox.

 

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