Introduction

One common misconception in the business world is that registering your company with the Corporate Affairs Commission (CAC) automatically grants you trademark protection. While both actions are essential for the growth and legal protection of your business, they serve distinct purposes and should not be conflated.

Company Registration

When a person is desirous of starting a legitimate business, they are usually advised to ensure that their business is registered. Depending on the type of business, a person could either register just the Business Name or the Company.

Once a business owner has decided on the type of business they want to run and the logo they want their business to have, what usually follows is registration of that business.

The organization responsible for documenting/ registration of businesses in Nigeria is the Corporate Affairs Commission and the law that regulates business in Nigeria is called the Companies and Allied Matters Act, 2020 formally known as (CAMA).

Registering Your Business with the Corporate Affairs Commission

When you register your company with the Corporate Affairs Commission (CAC), you are legally recognizing your business as a separate entity. This registration provides your company with a unique name, legal status, and the ability to engage in contracts, own property, and be sued or sue in its name. It also ensures compliance with Nigerian laws and allows you to operate within the country legally. However, this registration does not protect your brand identity, logo, or unique products from being used by others.

Trademarks

A Trademark is a sign, word, symbol or distinctive mark that uniquely sets the product apart from other products.

Anyone who sees the familiar bitten apple of Apple inc. or the good tick of Nike will quickly and easily be able to identify those symbols with the company. That is how essential having a Trademark associated to your product can be.

Registering a Trademark

A Trademark, on the other hand, is a specific sign, logo, name, or symbol that identifies and distinguishes your goods or services from those of others in the market. Registering a trademark with the appropriate authorities gives you exclusive rights to use that mark in connection with your products or services. This means that no one else can legally use your trademark without your permission, protecting your brand’s identity and reputation.

Differences between Company Registration and Trademark Registration

Despite the fact that Companies being registered usually have an accompanying logo, that does not mean that a company’s logo, symbol or design is automatically Trademarked upon registration.

The differences between Company registration and Trademark registration are;

1. A Company registration covers the shares and generally the business of your company as a going concern however, with Trademark, it is only the mark itself that is being registered and protected.
2. A Company registration protects the company itself and grants it the power to sue when there is an act against it and be sued as a legal person however, an unregistered Trademark leaves the owner of such mark vulnerable with only “passing off” its remedy when an individual or organization tries to imitate it.
3. A Company registration is done by the Corporate and Affairs Commission (CAC) while Trademarks are registered under the Trademarks, Patents and Design Registry which is under the Ministry of Industry, Trade and Investment.

Similarities between Company Registration and Trademark Registration

Although there are differences, the following are similarities between the two;

1. Both can be used to represent the other.
2. A Certificate is issued as evidence of registration of both.
3. Actions to enforce protection rights which registered trade marks and registered company names enjoy are instituted at the Federal High Court.

Why are Both Important?

While registering your business with the Corporate Affairs Commission is crucial for legal operation, it does not prevent others from using a similar name, logo, or brand identity in their products or services. Only a trademark can provide this protection. Without a trademark, you could face brand confusion, lose customers, or even be forced to rebrand if another entity secures the trademark for a similar name or logo.

Conclusion

In summary, while registering your company with the Corporate Affairs Commission (CAC) is an essential step in establishing your business, it does not equate to securing your brand identity. 

To fully protect your business, it is equally important to register a trademark. Doing so ensures that your brand remains unique and legally protected, giving you peace of mind and a competitive edge in the market.