From what I understand, unlike corporations, LLC’s do not have exclusive jurisdiction in all United States. Meaning, Bob in New York can create/own/run “Bob’s Super Business, LLC” while Bob in California can also create/own/run “Bob’s Super Business, LLC”.
Is that correct?
If so … what happens if I have an LLC called “Best Widgets, LLC” and my website is “bestwidgets.com” and the site’s been running for a few years.
Now, someone comes along and creates “The Best Widgets, LLC” (in their state) AND launches the website “TheBestWidgets.com”
The only difference is that they added the word “The”.
Is this kosher?
Do they have the legal right to do that? Or do I have the legal rights and is that considered an infringement?
It sounds like you’re mixing legal entities and marks. While one generally follows the other, there is no requirement of exclusivity on company names on their own thus you have literally thousands of “ACME Products” and “Cleaners” through DBAs, Incs, LLCs. Similarly trademarks started out much more localized as a New York barber and a California one had not reason to care that the other existed until very recently. Now we have domains and the concept of location has shifted dramatically [category / business still remains important].
You’re not required to file for protection but doing so affords you far, far, far better protection than claiming a common law mark in which you have to really be able to demonstrate the strength and overlap of what you have and what they’re using. Similarly if a name is too generic it doesn’t matter what you do to protect it, unless you can establish significant fame [and even then], you’re very, very limited.
In theory if you had the mark rights to BestWidgets, which was also a unique name, and someone created TheBestWidgets you’d have ground to stand on the burden would be on you to file suit, pay the costs and enforce you mark. Being right does not solve the issue.
[Note: I’m not a lawyer, don’t play one on tv and while this is a fun discussion, I’m almost certainly wrong about something so if you want advice to act on hire someone who is]
There’s nothing says that the person starting thebestwidgets.com is even located in the USA - they could be anywhere in the world.
My understanding is that there is only a conflict if the two are involved in the same field and so could potentially be confused for one another - at which time the first one to be established in that field would have precedence.
Generally it would be cheapest to resolve the matter personally rather than requiring legal action - for example when Apple US expanded into the music field they negotiated with Apple UK before doing so since Apple in the UK had been in the music business since the early 1960s and so had prior rights to the use of the Apple name in that particular field.