You’ve spent months, maybe years, perfecting your business plan. You’ve settled on the perfect name, designed a logo that pops, and you’re ready to print the signage for your storefront in Manayunk or launch your e-commerce site from a co-working space in Center City. Then, three weeks after your grand opening, a certified letter arrives.

It’s from a law firm in another state, and the message is blunt. Stop using your brand name immediately, or prepare for a federal lawsuit. For many Pennsylvania startups, a Cease-and-Desist letter is the first major crisis they face. In almost every case, this costly disaster could have been avoided through trademark clearance. Founders can also protect the brand and the business foundation by working with our startup business law team.

What is Trademark Clearance?

Trademark clearance is the due diligence phase of branding. It is the process of ensuring that your chosen business name, logo, or slogan does not infringe on someone else’s existing legal rights.

In 2026, with millions of brands active across social media, Amazon, and the USPTO registry, the risk of accidentally selecting a name already in use is higher than ever.

The Two Tiers of Searching

When working with Philadelphia startups, it is common to consider two levels of clearance.

This is a high-level scan of the United States Patent and Trademark Office database and basic Google results. It is designed to identify exact matches or clear conflicts. If your name is Philly Tech Solutions and someone else already has a federal registration for that exact name in the same industry, the knockout search tells you to go back to the drawing board immediately.

This is the deep dive. It looks for phonetically similar names, different spellings, and Common Law users. This search includes state-level registries, business filings, social media handles, and even domain name registries.

The Common Law Trap in Pennsylvania

A common mistake founders make is assuming that if it is not on the USPTO website, it is available. Under Pennsylvania law, a business can gain Common Law trademark rights simply by being the first to use a name in a specific geographic area.

If a coffee shop in Lancaster has used the name Red Fox Brews since 2018, it owns the rights to that name in its market, even if it never filed paperwork with the government. If you launch a competing brand with a similar name, they can sue you for unfair competition or trademark infringement based solely on their prior use.

Pennsylvania State vs. Federal Registration

Once you have cleared your name, you have a choice to make about where to register.

Pennsylvania State Registration

Protection applies only within Pennsylvania borders. Costs are relatively low, typically around $50 plus legal fees. Processing often takes only a few weeks. This option is often suitable for local service businesses, such as a plumber operating only in Delaware County.

Federal USPTO Registration

Protection extends across all fifty states. Filing fees are higher, typically several hundred dollars per class plus legal fees. Processing times are currently between twelve and eighteen months. This option is best for any business with a website, online sales, or national growth ambitions.

Important Update for 2026

The USPTO has updated its domicile address requirements. If you are running your startup out of a virtual office or a post office box, you must be prepared to prove a genuine base of operations to satisfy current fraud prevention standards.

The Likelihood of Confusion Standard

You do not have to use the exact same name as someone else to receive a cease-and-desist letter. The legal standard is called likelihood of confusion. Courts, including the Third Circuit, which covers Pennsylvania, evaluate several factors:

  • Similarity of the Marks: How similar the names look and sound.
  • Relatedness of the Goods or Services: Whether the businesses operate in related industries.
  • Overlap in Trade Channels
  • Whether the businesses sell through the same platforms, such as Instagram or online marketplaces.

If a consumer would likely be confused about whether two businesses are related, infringement may be found. Kandy Korner and Candy Corner would be considered legally identical in a trademark dispute.

How to Protect Your Launch

To ensure your brand launch is a celebration and not a legal nightmare, follow this checklist.

  • Do Not Fall in Love Too Early: Keep three to five potential names on your shortlist until you complete at least a knockout search.
  • Search Broadly: Check social media platforms such as TikTok, LinkedIn, and Instagram, as well as the Pennsylvania Department of State business search.
  • Get a Legal Opinion: A lawyer does more than run a search. They provide an opinion letter assessing the risk level. This can help protect you from claims of willful infringement damages if a dispute arises later.

File an Intent-to-Use Application

If you have found the perfect name but are not ready to launch, a federal Intent-to-Use application allows you to reserve the name and establish priority before competitors can.

Do Not Rebrand Twice

Rebranding after launch is far more expensive than conducting a proper clearance search at the beginning. You can lose signage, search engine rankings, packaging, and most importantly, customer trust.

Protect Your Brand the Right Way

Trademark issues are much easier and less expensive to prevent than to fix. Getting legal guidance before you invest in branding, marketing, and signage can save your business from major disruption.

If you are launching a new brand or want to ensure your name is legally safe, schedule a consultation via Spengler & Agans. Contact us online, or call Nathan Wenk to discuss a professional trademark clearance strategy tailored to your business.