Can Two Companies Share a Trademark?

What Businesses Need to Know About Shared Trademark Use

When you're building a business, your brand name matters. It tells people who you are, what you do, and how you stand out. But what happens when another company uses the same name? Can two businesses in New York share a trademark? The answer depends on how, where, and why each business uses the name. It also depends on how similar the industries are and how likely customers are to mix them up.

If you're facing a trademark concern or think another company might be using your brand, the attorneys at Horn Wright, LLP, are here to help. We guide business owners throughout New York State, from Buffalo to Brooklyn, in understanding what trademark protections they have and how to respond when there’s potential conflict. Our team works hard to protect what you've built so you can focus on growing your business.

Understand What a Trademark Protects

A trademark is more than just a name. It protects any word, phrase, symbol, or design that identifies your goods or services. That might include your logo, product packaging, business name, or even a catchy slogan. In New York, business owners often file trademarks federally through the United States Patent and Trademark Office (USPTO), but there are also protections under state law.

New York General Business Law §360 provides limited protections for unregistered marks used in commerce. These rights usually apply when you can show that your name or logo has built a strong reputation in the local area. However, that protection doesn’t always stop someone in a different city, or industry, from using a similar name. That’s why understanding what a trademark truly covers is a critical first step.

How Trademark Rights Work in New York

In the U.S., and in New York specifically, trademark rights attach as soon as you start using the mark in commerce. That means the first business to use a name in connection with its goods or services usually has the stronger legal claim, even without registration. It’s called "first-to-use" priority.

Let’s say a boutique in Ithaca begins using the name "Willow & Pine" for handmade soaps. A month later, a larger store in Queens launches using the same name but hasn’t registered the trademark yet. Even though the Queens store may have more visibility, the Ithaca boutique could still have priority rights if they used the mark first in a commercial setting.

New York businesses must be mindful of when and how they first use a name. Simply registering a corporation or domain name doesn't automatically grant trademark rights. Actual, consistent commercial use matters most.

When Can Two Companies Use the Same Trademark?

Yes, it can happen, but only under very specific conditions. Two companies can sometimes share the same trademark if their use doesn’t create confusion for consumers. That usually depends on their industry, geography, and branding approach.

Here are examples where shared use may not cause legal conflict:

• The businesses operate in different sectors (e.g., a Rochester coffee shop and a Long Island web design firm)
• They target different customer bases
• They serve different parts of New York State with no overlap
• They enter into a written coexistence agreement

One practical case might involve a bakery in Brooklyn using the name "Sunrise Goods" and a cybersecurity company in Albany doing the same. Because no customer is likely to confuse a croissant with a software license, the shared name may not violate trademark laws.

However, the moment these businesses expand or cross into each other’s industries or markets, that safe ground can shift.

What Counts as “Trademark Conflict” in New York?

Courts in New York use a "likelihood of confusion" test to determine trademark infringement. This means they look at how likely a reasonable consumer would be to mistake one brand for another. It’s a flexible standard, but it includes key factors like:

• How similar the marks are in look, sound, or meaning
• Whether the companies offer related products or services
• How close the businesses are geographically
• The strength of the original trademark
• Evidence of actual confusion among customers

A recent case in the Southern District of New York involved two financial firms with similar names. Even though they operated in different neighborhoods, the court found that the overlapping client base and shared professional circles created a likelihood of confusion. In that instance, shared use was not allowed.

Every case depends on its facts. What matters most is how a real-world consumer would interpret the branding.

Risks of Unknowingly Sharing a Trademark

You might think you’re safe because the other company is small or based in another city. But in a state as interconnected as New York, brand overlap happens fast. Social media, online shopping, and third-party reviews can blur lines overnight.

Risks include:

• Receiving a cease and desist letter
• Facing pressure to rename your company or product
• Losing access to a social media handle or web domain
• Damaging your brand’s reputation if consumers get confused
• Getting pulled into expensive litigation

In upstate areas like Syracuse and downstate markets like White Plains, local businesses sometimes expand faster than they expect. What starts as a neighborhood brand can grow into regional recognition, opening the door to conflicts you never saw coming.

How to Research Trademark Conflicts in New York

Before you launch your brand, take time to research whether anyone else is already using the same or similar mark. This saves time, money, and legal headaches later.

Here are smart ways to investigate:

• Use the USPTO’s TESS search tool to scan federal trademarks
• Check New York’s Corporation & Business Entity Database
• Search local directories like Yelp and Google Maps
• Review social media platforms for similar usernames or branding
• Look at domain name registries like GoDaddy or Namecheap

Don’t just check for exact matches. Look for variations in spelling, similar pronunciations, or logos that might confuse customers.

What Is a Trademark Coexistence Agreement?

Sometimes, two businesses want to keep using the same or similar name, and they’re willing to cooperate to make it work. In those cases, a trademark coexistence agreement can help.

This legal document spells out how both companies will use the mark without interfering with each other. It might limit one company’s use to a certain industry or region, or lay rules about logos and advertising language.

In fast-moving markets like New York City, where many industries sit shoulder to shoulder, coexistence agreements offer a practical path forward. But they must be specific, fair, and legally sound. A handshake agreement isn’t enough.

Why Federal Registration Still Matters

You might operate only in New York now, but that doesn’t mean you’ll stay small. A federal trademark gives you broader protection, stopping others in any state from using your name. It also creates a legal presumption that you own the mark nationwide.

Without registration, your rights may only stretch as far as your local footprint. If someone in another state registers your name federally, they could stop you from expanding later.

For example, a startup in Yonkers using "Green Thread Apparel" might feel safe until a San Francisco brand registers the name. That registration could block Green Thread from selling beyond New York, no matter how long they've been in business locally.

Federal registration matters even when your goals feel local.

When to Involve a Trademark Attorney in New York

Not every situation calls for legal help. But if you see red flags, a trademark attorney can save you a lot of stress.

Consider legal advice if:

• You’ve received a cease and desist letter
• You’re planning to expand into new markets
• Your brand name is similar to another company’s
• You’re entering an industry known for overlap (fashion, food, finance)
• You’re negotiating a coexistence agreement

A skilled attorney will not only protect your rights but help you avoid conflicts before they start. In New York’s dense and competitive economy, that peace of mind is worth the investment.

Sharing a Trademark Isn’t Simple

Trademark issues aren’t always black and white. In New York, two companies can sometimes share a trademark, but only if they do so carefully and legally. Business owners must understand how the law views confusion, risk, and priority.

If you're unsure whether your business name is protected or at risk, it's worth getting answers. The attorneys at Horn Wright, LLP, know New York's trademark landscape. We help businesses across the state secure their brands and move forward with confidence.