The deposit of trade names and business signs in Colombia is a declaratory procedure carried out before the Colombian Superintendency of Industry and Commerce (SIC). Although exclusive rights in these signs arise primarily from their first use in commerce, the deposit provides an official record of the sign used to identify a business activity or commercial establishment.
Trade names and business signs are distinctive signs that differ from trademarks and a company’s corporate name. Their proper identification, use and deposit may help protect the commercial identity of businesses and establishments against third parties.
What is a trade name?
A trade name is a sign that identifies a business activity, enterprise or commercial establishment in the course of its operations. In practical terms, it is the name under which a business presents itself and is recognized in the marketplace by its customers, suppliers and competitors.
A business or establishment may use more than one trade name. A trade name may also coincide with the corporate name of the legal entity or consist of a different designation.
What is a business sign?
A business sign is a sign used to identify a commercial establishment. It may appear on the façade of business premises, signage, visual elements or customer service areas to distinguish that establishment from others operating in the marketplace.
For example, a company may operate several establishments identified by different business signs, even when all of them belong to the same legal entity.
Differences between a trade name, business sign, corporate name and trademark
Although these concepts may coexist and, in some cases, consist of similar wording, each performs a different legal and commercial function:
- Trade name: identifies a business activity, enterprise or commercial establishment in the marketplace. Example: CENCOSUD.
- Business sign: specifically identifies a commercial establishment. Example:
- Corporate or legal name: the legal name under which a company is incorporated and registered in the commercial registry. Example: CENCOSUD S.A.
- Trademark: distinguishes goods or services from identical or similar goods or services offered in the marketplace. Example:
Accordingly, a company incorporated under the name Inversiones Pérez Rodríguez S.A.S. may use a different trade name when presenting itself to customers, operate establishments identified by one or more business signs and own different trademarks to distinguish its goods or services.
For this reason, registering a company with the Chamber of Commerce is not equivalent to registering a trademark and does not replace the legal analysis required to protect the other distinctive signs used by the business.
How are rights in a trade name or business sign acquired?
Exclusive rights in a trade name arise from its first use in commerce and terminate when its use ceases or when the activities of the business or establishment using it come to an end. The same general rules of protection apply to business signs.
Consequently, the deposit before the SIC does not, by itself, create exclusive rights. Protection depends on the actual use of the sign in commercial dealings and on the ability to prove such use when required.
Maintaining properly organized invoices, agreements, advertising materials, photographs, corporate materials, business communications and other documents relating to the sign may be relevant to demonstrate how, since when, where and in connection with which activities it has been used.
What is the purpose of the deposit before the SIC?
The deposit of a trade name or business sign is declaratory in nature. Its purpose is to enter the sign in the industrial property register administered by the Colombian Superintendency of Industry and Commerce and to provide a record of the information declared by its owner.
This deposit may help document the identity of the sign and the business activity or establishment with which it is associated. However, it does not replace the obligation to prove use in the event of a dispute, nor does it, by itself, guarantee that the use of every similar sign may be prevented.
The ability to take action against third parties depends, among other factors, on the existence of an earlier right, the effective use of the sign, the activities carried out and the likelihood of confusion or association that may arise in the marketplace.
Matters to review before filing a deposit application
Before filing a deposit application, it is advisable to review, at a minimum, the following matters:
- The nature of the sign: it must be determined whether the sign is used as a trade name, business sign, trademark, corporate name or in more than one of these capacities.
- Ownership: the individual or legal entity that uses the sign in commerce must be correctly identified.
- The business activity: the commercial or business activities with which the sign is associated must be clearly specified.
Procedure for depositing trade names and business signs
The application is filed before the Colombian Superintendency of Industry and Commerce and must include the applicant’s identification, a representation of the sign and information concerning the business activity, enterprise or establishment that the sign is intended to identify.
The authority examines the application in accordance with the applicable regulations and determines whether the deposit should be granted or refused.
Cárdenas Vega Asesores provides legal advice on the assessment, preparation and filing of applications for the deposit of trade names and business signs before the SIC, as well as on the protection mechanisms applicable in each case.
Frequently asked questions
Does the deposit before the SIC create exclusive rights?
No. The deposit is declaratory in nature. Exclusive rights arise from the first use of the trade name or business sign in commerce and remain in effect for as long as such use continues.
Does incorporating a company automatically protect its name as a trademark?
No. The registration of a corporate name in the commercial registry and the registration of a trademark are separate procedures. A trademark application must be filed before the SIC to obtain protection for the goods or services distinguished by the mark.
May a company use several trade names or business signs?
Yes. A business or establishment may use more than one trade name and may also operate establishments identified by different business signs, provided that their use complies with the applicable regulations and does not infringe earlier rights.