Trademark Basics for Startup Founders

In 2021, a YC-backed startup called Candy launched a digital collectibles platform. Six months later, they received a trademark challenge from Candy Digital, a separate company backed by Softbank. Both operated in the same space. Both had filed trademarks. The dispute dragged on for over a year, cost six figures in legal fees, and distracted both teams during a critical growth window. Neither company needed this fight. A basic knockout search before either company launched would have surfaced the collision.

Trademark law is not exciting. It is also not optional. You do not need to become an expert. You need to know enough to avoid the mistakes that cost founders months and money.

What a trademark actually protects

A trademark protects a brand identifier (name, logo, slogan) within a specific category of goods or services. The key phrase is "within a specific category." Apple the computer company and Apple Records (the Beatles' label) coexisted for decades because they operated in different classes. They eventually clashed when Apple Inc. entered the music business with iTunes, which led to a settlement. But the principle holds: trademarks are class-specific.

This matters because founders often see a name in the USPTO database and panic. If a company named "Lumen" is registered in Class 11 (lighting) and you are building enterprise software (Class 42), there is likely no conflict. Classes define the boundary.

The classes that matter for software companies

The Nice Classification system has 45 classes. Three matter most for SaaS and software startups:

Class 9: Computer software. This covers downloadable software, mobile apps, and software sold as a product. If your product has a downloadable component, you need Class 9.

Class 35: Business services. This covers advertising, business management, and business administration services. If your SaaS product helps businesses manage operations (CRM, analytics, project management), Class 35 applies.

Class 42: SaaS and technology services. This is the primary class for software-as-a-service. It covers "providing temporary use of non-downloadable software." If you charge a monthly subscription for cloud-based software, Class 42 is your core filing.

Most SaaS startups file in Classes 9 and 42. Companies with a significant business services component (marketing platforms, recruiting tools, analytics platforms) should also file in Class 35. Each additional class costs $275 to $350 in USPTO filing fees.

Knockout search vs. comprehensive search

There are two levels of trademark search. Founders should understand the difference before spending money.

A knockout search is what you do yourself. It takes 30 minutes and costs nothing. Go to USPTO TESS (tess2.uspto.gov), run a "Basic Word Mark Search" for your name, and review the results. Filter by status (look at live marks, ignore dead ones) and by class (focus on 9, 35, 42). Also check EUIPO TMView for European marks. The goal is to eliminate names with obvious conflicts before you invest time or money.

A comprehensive search is what a trademark attorney does. It covers federal registrations, state registrations, common law marks (unregistered but in use), domain names, and phonetic equivalents. A comprehensive search costs $500 to $2,000 and takes one to two weeks. It catches things a knockout search misses: similar-sounding marks, regional businesses operating under common law rights, and pending applications that have not yet been published.

Run the knockout search on all candidates. Run the comprehensive search only on your final one or two choices. This sequence saves money without sacrificing rigor.

For the full availability checklist (domains, trademarks, registries, social handles), see how to check if a company name is available.

When to file

File before you launch. Not after. Not "when we have revenue." Not "when we raise our seed round." Before launch.

In the US, you can file an "intent to use" application before the product is live. This reserves the mark and gives you priority over anyone who files later. The application costs $250 to $350 per class using the TEAS Plus or TEAS Standard forms. You then have six months (extendable to 36 months in six-month increments) to demonstrate use in commerce.

The reason to file early is simple: trademark priority is first-to-file in most jurisdictions. If a competitor files your name in your class before you do, you face a costly opposition proceeding. The $350 filing fee is insurance against a $50,000 legal fight.

In the EU, EUIPO registration costs approximately EUR 850 for one class, with EUR 50 for a second class and EUR 150 for each additional class. The EU mark covers all 27 member states in a single filing. If you have any European ambition, this is remarkably efficient.

International protection: the Madrid Protocol

The Madrid Protocol allows you to extend a trademark registration to multiple countries through a single application filed with WIPO (the World Intellectual Property Organization). You designate which countries you want coverage in, and each country's trademark office evaluates the application under its own rules.

The economics are favorable. A Madrid Protocol application costs CHF 653 (approximately $730) as a base fee, plus per-country fees that range from $100 to $400. Compared to filing separately in each country (which can cost $1,000 to $5,000 per jurisdiction through local counsel), the Madrid Protocol is significantly cheaper for coverage in three or more countries.

The catch: the Madrid Protocol application must be based on an existing registration or application in your home country. File your USPTO or EUIPO application first, then extend internationally.

For more on international naming considerations, read naming for international markets.

When to hire a trademark attorney

You do not need a lawyer for a knockout search. You do not need a lawyer to file a straightforward application in one country and one class. The USPTO website walks you through the process.

You need a lawyer when:

• Your knockout search reveals similar marks in related classes and you are not sure if they conflict.
• You plan to file in multiple countries and need a Madrid Protocol strategy.
• You receive an office action (a rejection or query from the USPTO examiner) and need to respond.
• A competitor challenges your application or sends a cease-and-desist.
• Your name is a real word or common phrase and the distinctiveness argument requires legal nuance.

Trademark attorneys typically charge $1,000 to $3,000 for a filing with comprehensive search, and $250 to $500 per hour for dispute work. Budget for this in your legal line item, not as an afterthought.

The one rule

You will never regret filing a trademark too early. You will always regret filing too late. The cost of a filing is a few hundred dollars. The cost of a naming conflict is measured in months of lost momentum, legal fees, and a rebrand that confuses every customer you have acquired. Treat trademark filing as part of the launch checklist, right next to domain registration and incorporation.

Nomenco's naming methodology considers trademark viability at the candidate generation stage, not as an afterthought. Explore the full process.