NFIB

Protecting Your Good Name
03/ 12/ 2002

by Shannon Scully

When Richard Hagelberg received a certified mail letter from the United States Olympic Committee (USOC), he thought it must be some sort of joke. The owner of a playground equipment manufacturing business in Gary, Ind., had always been a huge fan of the Olympics. So much a fan that upon his company's founding in 1982, he named it Olympic Recreation.

"The Olympics seemed to denote a concept appropriate for the development and growth of kids," says Hagelberg.

But in March 2000, the Olympics told this small business owner he had two years to change his company's name, or else be sued. Apparently, only the USOC's official sponsors and licensees--global corporations like Coca-Cola and Xerox--are allowed to use the word `Olympic.'

Even though Hagelberg thought a trademark on the word `Olympic' was ridiculous, the search began for a new name to avoid a costly federal lawsuit.

"We consulted our lawyer and were very careful to chose a name that wasn't trademarked," he says. "It was harder than you think. Everything we came up with was already taken."

He finally settled on Kidstuff Playsystems.

Hagelberg had spent 18 years building his business' reputation, and changing its name overnight frightened him. Not only did he worry about losing customers unfamiliar with the new name; he also had to change all letterhead, business cards, signage and truck decals.

The cost of the changes? He hasn't kept track, because he just doesn't want to know, he says.

The lesson here is clear: for those thinking of starting a new business or renaming an existing one, consult a trademark attorney before finalizing your business's name. Lots of surprising words are off-limits. McDonald's won't even allow you the use of "Mc."

"The money you spend on a lawyer upfront will save you huge costs in the long run," Hagelberg says.

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This article originally appeared in the February/March 2002 issue of MyBUSINESS Magazine.

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