Learn the difference. The term trademark is commonly used to describe many different types of devices that label, identify and distinguish products or services in the marketplace. The basic purpose of all these devices is to inform potential customers of the origin and quality of the underlying products or services. A trademark is a distinctive word, phrase, logo, Internet domain name, graphic symbol, slogan or other device that is used to identify the source of a product and to distinguish a manufacturer's or merchant's products from others. Some examples are Nike sports apparel, Gatorade beverages and Microsoft software.
Consumers often make their purchasing choices on the basis of recognizable trademarks.
For this reason, the main thrust of trademark law is to make sure that trademarks don't overlap in a manner that causes customers to become confused about the source of a product. As a general rule, when a business uses its name to market its goods or services in the yellow pages, on signs or in advertising copy, the name qualifies as a service mark. This type of mark may cover characteristics such as regional origin, method of manufacture, product quality and service accuracy. A collective mark is a symbol, label, word, phrase or other mark used by members of a group or organization to identify goods, members, products or services they render. Collective marks are often used to show membership in a union, association or other organization.