Glossary of Business Law Terms

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Terms

Definitions

A

Abandoned Application

A Trademark Application is considered Abandoned, pursuant to 37 CFR 1.135 and 1.138, when it is removed from the Office docket of pending applications due to:

(A) Formal Abandonment, which may occur:

  • By the applicant,
  • By the attorney or agent of record, or
  • By a registered attorney or agent acting in a representative capacity under 37 CFR 1.34 when filing a continuing application; or

(B) Failure by the applicant to take the required action within a specified time during the prosecution of the application.

Abandonment

The prcoess of removing a Trademark or Service Mark Application from the USPTO docket of pending applications. 

Agent for Service of Process

An Agent for Service of Process (called “Registered Agent” or “Statutory Agent” in some states) is a “person” or “entity” designated by an LLC or Corporation to receive legal documents and government notices on behalf of a company.

Agreement

An Agreement is a mutual understanding between two or more parties regarding their respective rights and obligations. An Agreement reflects the parties’ intent to be bound by certain terms, whether expressed verbally, in writing, or implied by conduct.

Allegation of Use

A claim by the applicant of an Intent to Use trademark application that the trademark is being used in the stream of commerce. 

Amendment

An amendment is a formal modification, revision, correction, or addition made to an existing legal document, filing, agreement, corporate record, or organizational instrument.

Annual Meeting

An annual meeting is a regularly scheduled meeting of shareholders, members, directors, or other governing parties held each year to address required corporate or organizational matters, elections, reports, and other business affairs.

Appeal

An appeal is a legal process through which a party requests that a higher court, tribunal, or authority review and reconsider a decision, ruling, judgment, or determination made by a lower court or governmental body.

Arbitrary Mark

An arbitrary mark is a trademark that uses a common word or term in a manner that has no logical or direct relationship to the goods or services with which it is used. (i.e. “Apple” for computers; “Camel” for cigarettes; “Shell” for gas and oil.

Articles of Incorporation

The official document filed with a Secretary of State to form a Corporation. 

Articles of Organization

The official document or form filed with a Secretary of State to form a Limited Liability Company. 

Asset

An asset is any item of value owned or controlled by an individual or entity that may provide current or future economic benefit, utility, or legal rights.

Asset Protection

Asset protection is the use of lawful legal strategies, structures, planning techniques, and risk-management measures designed to help safeguard assets from potential claims, liabilities, creditors, or other financial risks.

Asset Purchase

An asset purchase is a transaction involving the acquisition or sale of specific assets, rights, or property of a business, rather than the ownership interests or equity of the business entity itself.

Asset Purchase Agreement

A written contract whereby one party (the Seller) sells all or substantially all of its assets in a business to another party (the Buyer). Asset purchase agreements are normally used when the Buyer wants to purchase the assets of a business without taking on the liabilities. See also, Stock Purchase Agreement

Assignment

An assignment is the transfer of certain rights, interests, ownership, or obligations from one party to another through a legal agreement or other authorized means.

B

Board Meeting

A board meeting is a formal meeting of a corporation’s board of directors held to discuss, manage, and take action regarding corporate governance, operations, strategy, and other business matters.

Board Member

A member of the board of directors of a corporation, limited liability company, or non-profit organization. 

Board of Directors

A board of directors is the governing body of a corporation responsible for overseeing the corporation’s management, direction, major decisions, and overall business affairs.

Business Law

The body of laws pertaining to business ownership, operation, and management. 

Business Lawyer

An attorney, like Roger Doumanian, whose law practice focuses on Business Law.

Bylaws

Bylaws are the internal governing rules and procedures adopted by a corporation that establish how the corporation will be managed, operated, and governed.

C

Cease and Desist

A cease and desist letter is a formal written demand requesting that a party stop certain alleged actions, conduct, infringement, violations, or activities that may violate legal rights or obligations.

Certificate of Registration

A certificate provided by the United States Patent and Trademark Office (USPTO) evidencing that a trademark or service mark has been registered with the USPTO. 

Certification Mark

A certification mark is a trademark used to certify that the goods or services of others meet certain standards, qualities, characteristics, materials, methods of manufacture, geographic origin, or other specified criteria established by the owner of the mark.

Examples of certification marks include:

  • UL — certifies product safety standards
  • Certified Angus Beef — certifies beef meeting specified quality standards
  • Idaho Potatoes — certifies geographic origin and quality standards
  • Woolmark — certifies products made from pure wool
  • Fairtrade — certifies compliance with fair trade standards

Unlike ordinary trademarks, certification marks are generally used by authorized third parties rather than by the owner of the mark itself.

Charging Order

A charging order is a court-authorized remedy that grants a creditor the right to receive distributions or financial interests that would otherwise be payable to a debtor from a limited liability company, partnership, or similar entity, without necessarily granting management or ownership rights in the entity.

Charging Order Limitations

Charging order limitations are legal restrictions that limit a creditor’s remedies against a debtor’s ownership interest in certain business entities, often restricting the creditor to receiving distributions without granting control, voting, management, or direct ownership rights in the entity.

Co-Existence Agreement

A coexistence agreement is a legal agreement between parties establishing the terms under which similar or potentially conflicting trademarks may coexist and be used in commerce without objection, confusion disputes, or infringement claims under agreed conditions.

Collective Mark

A collective mark is a trademark or service mark used by members of a group, association, cooperative, or other collective organization to identify membership or to distinguish the goods or services of members from those of non-members.

Examples of collective marks include:

  • CPA — used by qualified members of the accounting profession
  • REALTOR — used by members of the National Association of Realtors
  • AAA — used by affiliated members and organizations
  • NFL — used by member teams of the league

Unlike standard trademarks, collective marks are generally used by authorized members of the collective organization rather than solely by the owner itself.

Compliance

Compliance is the ongoing process of adhering to applicable laws, regulations, filing requirements, corporate formalities, internal governance procedures, and operational obligations required for a business or entity to remain in good standing. See our CAP Defense services for more.

Confidentiality Agreement

A confidentiality agreement is a legal agreement that restricts the disclosure, use, or unauthorized sharing of confidential, proprietary, or sensitive information between parties.

Conflicting Mark

A conflicting mark is a trademark or service mark that may create a likelihood of confusion with another mark due to similarities in appearance, sound, meaning, commercial impression, or related goods or services.

Copyright

A copyright is a form of intellectual property protection that grants the creator of an original work exclusive rights to reproduce, distribute, display, perform, license, and create derivative works from that work for a limited period of time.

Copyright Infringement

Copyright infringement is the unauthorized use, reproduction, distribution, display, performance, or creation of derivative works from copyrighted material in violation of the rights of the copyright owner.

Copyright Law

Copyright Law is a type of Intellectual Property Law, created by The Copyright Act of 1976, that protects original works of authorship, such as books, movie scripts, photos, graphics, and art, just to name a few things. It gives the creator of a work the exclusive legal rights to use, reproduce, distribute, display, perform, and create derivative works based on that original work. 

Copyright Lawyer

An attorney whose legal practice focuses on Copyright Law including Copyright Registration

Corporation

A corporation is a legal entity formed under state law that exists separately from its owners, with the ability to own property, enter into contracts, conduct business, sue and be sued, and provide limited liability protection to its shareholders.

Corporate Lawyer

A lawyer whose law practice is focused on Corporations, including Corporate Formation, Compliance, and representations. 

D

Design Mark

A trademark or service mark registered in logo, icon, or graphic format rather than text only.

Dispute Resolution

Dispute resolution is the process of resolving disagreements, claims, or conflicts between parties through negotiation, mediation, arbitration, litigation, settlement, or other legal or alternative resolution methods.

Disbursement

A disbursement is the distribution or payment of money, profits, assets, or other financial value by a corporation or limited liability company to its shareholders, members, or owners.

Disclaimer

A disclaimer is a statement intended to limit, clarify, or exclude certain rights, obligations, representations, warranties, liabilities, interpretations, or legal responsibilities.

Dissolution

The process of dissolving a Corporation or Limited Liability Company by following the necessary formalities and filing the required documents with the Secretary of State. 

Distribution

A distribution is the allocation or payment of money, profits, assets, or other financial value by a corporation or limited liability company to its shareholders, members, or owners in accordance with applicable agreements, ownership interests, or governing law.

Domain Name

A domain name is a unique internet address used to identify and access a website or online resource on the internet. (Example: Doumanian.com)

Due Diligence

Due diligence is the process of investigating, reviewing, analyzing, and evaluating legal, financial, operational, intellectual property, compliance, or other relevant information relating to a business, transaction, asset, or matter before making a decision or entering into an agreement.

E

Examining Attorney

The attorney assigned by the United States Patent and Trademark Office to review a Trademark Application to determine whether Registration of the applied-for mark will be granted or refused. The Examining Attorney may also require additional information or amendments to the application by issuing an Office Action. 

F

Fanciful Mark

A fanciful mark is a trademark consisting of a coined, invented, or made-up word created solely for use as a trademark and having no prior meaning apart from its association with the applicable goods or services.

Examples of fanciful marks include:

  • Kodak
  • Exxon
  • Pepsi
  • Xerox
  • Verizon

These marks were created specifically to function as brand identifiers and did not have an established dictionary meaning before their use as trademarks.

First Right of Refusal

A right of first refusal is a contractual right requiring an owner to first offer certain property, assets, ownership interests, or rights to a specified party before offering or transferring them to a third party.

First Right of Refusal Agreement

A right of first refusal agreement is a legal agreement granting a specified party the contractual right to purchase or acquire certain property, assets, or ownership interests before the owner may sell or transfer them to a third party.

Formalities

Formalities are the required legal, procedural, governance, and recordkeeping practices a business or entity must observe to maintain compliance, proper operation, and good standing under applicable laws and organizational documents.

G

Generic Term

A generic term is a common name or description for a type of product, service, or category of goods that cannot function as a trademark because it does not identify a single commercial source.

Goods and Services

Goods and services are the specific products and activities identified in a trademark application or registration that define the scope of protection and the commercial use of the trademark.

H

Definition

I

Incontestability

Incontestability is a legal status that may be obtained by certain federally registered trademarks after meeting statutory requirements, providing the registration with enhanced evidentiary protections and limiting certain grounds upon which the trademark may be challenged.

Inside Creditor

An Inside Creditor is a creditor who has a claim directly against a business entity or an entity that owns a real estate property due to a cause of action attributed to the business or real property. (see also, Outside Creditor).

Inside Debt

Inside Debt is debt owed to an Inside Creditor who has a claim against a business entity or an entity that owns real property resulting from a cause of action attributed to the business entity or real estate property. (see also, Outside Debt).

Intellectual Property

Intellectual property is a category of legal rights protecting creations of the mind, including trademarks, copyrights, patents, trade secrets, designs, brands, inventions, creative works, and other proprietary intangible assets.

Intent to Use

An intent-to-use application is a trademark application filed with the United States Patent and Trademark Office based on a bona fide intention to use a trademark in commerce in the future, even though the mark is not yet currently in use.

J

Judgment

A judgment is a final decision, order, or determination issued by a court resolving the rights, obligations, liabilities, or claims of the parties in a legal proceeding.

K

Definition

L

Lanham Act (Trademark Act of 1946)
The Lanham Act, or the Trademark Act of 1946, is a federal law in the United States that regulates trademarks, service marks, and unfair competition, establishing guidelines for trademark registration, protection, and enforcement.

Letter of Intent 

A letter of intent is a preliminary written document outlining the principal terms, understandings, and intentions of parties regarding a proposed transaction, agreement, or business arrangement prior to executing a final definitive agreement.

Liability

Liability is a legal responsibility or obligation for debts, damages, losses, claims, conduct, or other legal duties arising under law, contract, or other legal relationships.

Licensing

Licensing is the process of granting permission to another party to use certain intellectual property, rights, assets, products, services, or proprietary interests under agreed terms and conditions.

Licensing Agreement

A licensing agreement is a legal agreement setting forth the terms and conditions under which one party grants another party permission to use certain intellectual property, rights, assets, products, services, or proprietary interests.

Likelihood of Confusion

Likelihood of confusion is a legal standard used in trademark law to determine whether consumers are likely to mistakenly believe that goods or services originate from, are affiliated with, sponsored by, or connected to the same source due to similarities between trademarks or related commercial factors.

Limited Liability Company

A limited liability company is a legal business entity that combines certain characteristics of a corporation and a partnership or sole proprietorship, while generally providing limited liability protection to its owners, known as members.

LLC

Abbreviation for limited liability company.

LOI

Abbreviation for Letter of Intent. 

M

Meeting Minutes

Official notes taken during a Board of Directors, Shareholders, Members, or other official business meetings documenting the events that transpired during the meeting, including, but not limited to resolutions, ratifications, and other important votes and decisions made during such meeting. Meeting minutes are often required formalities that business entities must comply with. 

Member

A Member is an individual or entity that owns a Membership Interest (ownership interest) in a Limited Liability Company. 

Membership Certificate

An official certificate demonstrating an individuals or entity’s ownership interest in a Limited Liability Company. 

Membership Interest

Evidence of an ownership interest in a Limited Liability Company that entitles the owner to a share of the LLC’s profits, losses, and voting rights. See also, Stock Certificate.

Merely Descriptive

Merely descriptive refers to a trademark or term that directly describes an ingredient, quality, characteristic, function, feature, purpose, or other attribute of the applicable goods or services rather than identifying their source.

Minute Book 

A minute book is a collection of a corporation’s or entity’s important organizational and governance records, including meeting minutes, written consents, bylaws, resolutions, stock records, and other official corporate documents.

N

NDA

Abbreviation for non-disclosure agreement

Non-Compete Agreement

A non-compete agreement is a legal agreement that restricts a party from engaging in certain competing business activities, employment, or commercial conduct for a specified period of time, within a defined geographic area, and under agreed conditions.

Non-Disclosure Agreement

A non-disclosure agreement is a legal agreement that restricts the disclosure, use, or unauthorized sharing of confidential, proprietary, or sensitive information between parties.

Non-Disparagement

A non-disparagement provision is a contractual clause restricting a party from making false, harmful, negative, or disparaging statements about another party, business, brand, products, services, or reputation.

Notice of Allowance

A Notice of Allowance is an official notice issued by the United States Patent and Trademark Office indicating that a trademark application based on intent to use has been approved for registration, subject to the applicant timely filing acceptable proof of use in commerce.

Notice of Publication

A Notice of Publication is an official notice issued by the United States Patent and Trademark Office indicating that a trademark application has been approved for publication in the Official Gazette for potential opposition by third parties.

O

Office Action

An Office Action is an official written communication issued by a Trademark Examining Attorney at the United States Patent and Trademark Office identifying legal issues, procedural requirements, refusals, or other matters that must be addressed before a trademark application may proceed toward registration.

Operating Agreement

An operating agreement is a legal agreement among the members of a limited liability company that governs the company’s ownership, management, operations, rights, responsibilities, and internal affairs.

Outside Creditor

In the world of Asset Protection, an Outside Creditor is a creditor that has a claim against the owners of a business entity or an entity that owns a real estate property, holding the owners individually liable for such claims. 

Outside Debt

An Outside Debt is debt owed to an Outside Creditor personally by the owners of a business entity or an entity that owns real estate property for a claim that falls outside of the protections offered by the business entity. 

P

Patent

A patent is a form of intellectual property protection granted by the United States Patent and Trademark Office that provides an inventor with exclusive rights to make, use, sell, and license an invention for a limited period of time.

Pre-Existing Application

A pre-existing application is a previously filed trademark application that may affect the availability, registration, or use of a later-filed trademark application or mark.

Pre-Existing Mark

A pre-existing mark is a trademark or service mark that was already in use, registered, or claimed by another party prior to the adoption, use, or filing of a later trademark application or mark.

Principal Register

The Principal Register is the primary trademark register maintained by the United States Patent and Trademark Office for trademarks that qualify for full federal trademark protection and registration benefits.

Privacy Policy

A privacy policy is a legal document that discloses how a business, website, or organization collects, uses, stores, shares, and protects personal or sensitive information obtained from users, customers, or visitors.

Promissory Note

A promissory note is a written legal instrument containing a borrower’s promise to repay a specified sum of money to a lender under agreed terms and conditions, which may include interest, payment schedules, maturity dates, and default provisions.

Q

Quitclaim Deed

A quitclaim deed is a legal document used to transfer whatever ownership interest a person or entity may have in real property, without providing any warranties or guarantees regarding title, ownership, or encumbrances.

R

Recapitalization

A recapitalization is a restructuring of a corporation’s capital structure involving changes to its equity, debt, ownership interests, authorized shares, issued shares, or classes of securities.

S

Section 2(d) Refusal

A 2(d) Refusal is a refusal to register a Trademark based on Section 2(d) of the Lanham Act. A Trademark Examining Attorney will issue a 2(d) Refusal if he or she believes that your applied-for Trademark is “likely to cause confusion” with an already Registered Trademark or a pending Trademark application. The purpose of a Section 2(d) Refusal is to prevent consumers from mistakenly believing your Goods or Services come from the same source as those associated with the pre-existing o r pending Trademark or Service Mark.

Securities

Securities are financial ownership or investment interests in a business or enterprise, such as stocks, membership interests, partnership interests, bonds, notes, or other instruments representing equity, debt, or rights to share in profits or assets.

Security Agreement

A security agreement is a legal agreement that grants a lender a security interest in specified collateral to secure repayment obligations under a promissory note or other debt instrument.

Service Mark

A service mark is a word, name, phrase, logo, symbol, design, or combination thereof used to identify and distinguish the source of services of one party from those of others.

Settlement

A settlement is a negotiated resolution of a dispute between parties, typically involving agreed terms intended to resolve claims, avoid further conflict, or conclude legal proceedings without a final court judgment.

Settlement Agreement

A settlement agreement is a legally binding contract between parties that sets forth the terms and conditions for resolving a dispute, claim, or legal matter.

Shareholder

A shareholder is a person or entity that owns one or more shares of stock in a corporation and holds an ownership interest in that corporation.

Shareholder Buy/Sell Agreement

A shareholder buy/sell agreement is a legal agreement among shareholders that governs the purchase, sale, transfer, or disposition of shares in a corporation upon specified events or circumstances.

Shareholder Meeting

A shareholder meeting is a formal meeting of a corporation’s shareholders held to discuss, vote on, and take action regarding corporate matters, governance issues, and other business affairs of the corporation.

Special Meeting

A special meeting is a meeting called outside of a regularly scheduled meeting to address specific matters, business, or actions requiring consideration or approval by the applicable members, shareholders, directors, or other governing parties.

Specimen

A specimen is a real-world example showing how a trademark is actually used in commerce in connection with the applicable goods or services identified in a trademark application or registration.

Statement of Information

A Statement of Information is a periodic filing required by certain state agencies, like the California Secretary of State, that provides updated information regarding a business entity’s ownership, management, addresses, registered agent, and other corporate or organizational details for compliance and public record purposes.

Statement of Use

A Statement of Use is a filing submitted to the United States Patent and Trademark Office declaring that a trademark is being used in commerce in connection with the goods or services identified in a trademark application, and typically includes supporting specimens evidencing such use.

Stock

Stock is a unit of ownership in a corporation representing an equity interest in the company, including certain rights, privileges, and potential interests in the corporation’s assets, profits, and governance.

Stock Certificate

A legally issued certificate evidencing ownership of shares of stock of a Corporation. See also, Membership Certificate.

Stockholder

A stockholder, also called a shareholder, is a person or entity that owns one or more shares of stock in a corporation and holds an ownership interest in that corporation.

Stock Purchase Agreement

A stock purchase agreement is a legal agreement governing the purchase and sale of shares of stock in a corporation, including the terms, conditions, representations, warranties, and obligations of the parties involved in the transaction.

Supplemental Register

The Supplemental Register is a secondary trademark register maintained by the United States Patent and Trademark Office for trademarks that are capable of distinguishing goods or services, but that do not yet qualify for registration on the Principal Register, often because they are considered descriptive.

T

Trademark

A trademark is a word, name, phrase, logo, symbol, design, or combination thereof used to identify and distinguish the source of goods or services of one party from those of others.

Trademark Appeal

A trademark appeal is a legal proceeding seeking review of a decision or refusal issued by a Trademark Examining Attorney or other trademark authority regarding a trademark application, registration, or related trademark matter.

Trademark Application

A trademark application is a formal filing submitted to the United States Patent and Trademark Office seeking registration and legal protection of a trademark used, or intended to be used, in connection with specific goods or services.

Trademark Examining Attorney

A Trademark Examining Attorney is an attorney at the United States Patent and Trademark Office responsible for reviewing trademark applications to determine whether they comply with applicable trademark laws, rules, and registration requirements.

Trademark Infringement

Trademark infringement is the unauthorized use of a trademark or service mark, or a confusingly similar mark, in a manner that is likely to cause consumer confusion regarding the source, affiliation, sponsorship, or approval of goods or services.

Trademark Law

Trademark law is the area of law that governs the protection, registration, use, enforcement, and licensing of trademarks and related brand identifiers used to distinguish the source of goods or services in commerce.

Trademark Lawyer

A trademark lawyer is an attorney, like Roger Doumanian, Attorney at Law, who advises clients on trademark selection, clearance, registration, protection, licensing, enforcement, and disputes involving trademarks and related intellectual property rights.

Trademark Registration

Trademark registration is the legal process of obtaining official recognition and protection of a trademark through the United States Patent and Trademark Office or other applicable governmental authority.

Trademark Renewal

Trademark renewal is the process of maintaining an active trademark registration by filing the required renewal and maintenance documents, and paying applicable fees, within the deadlines established by the United States Patent and Trademark Office.

Trade Search

A trademark search is the process of reviewing registered, pending, and potentially conflicting trademarks to evaluate the availability and legal risks associated with using or registering a proposed trademark.

Trade Secret

A trade secret is confidential business information that derives independent economic value from not being generally known and is protected through reasonable measures taken to maintain its secrecy.

Trade Secret Agreement

A trade secret agreement is a legal agreement designed to protect confidential and proprietary information by restricting the disclosure, use, or unauthorized sharing of trade secrets and other sensitive business information.

Trademark Trial and Appeal Board

The Trademark Trial and Appeal Board (TTAB) is an administrative tribunal within the United States Patent and Trademark Office responsible for hearing and deciding certain trademark disputes, including appeals of trademark application refusals, oppositions, cancellations, and other trademark-related proceedings.

TTAB

Abbreviation for the Trademark Trial and Appeal Board.

U

UDRP

Abbreviation for the Uniform Domain Name Dispute Resolution Policy.

Uniform Domain Dispute Resolution Policy

The Uniform Domain Name Dispute Resolution Policy was established by the Internet Corporation for Assigned Names and Numbers (ICANN) to help resolve disputes between domain name registrants and those claiming to have protected rights in a registered domain name.

United States Patent and Trademark Office

The United States Patent and Trademark Office (USPTO) is the federal agency responsible for examining and registering trademarks, issuing patents, and administering laws related to intellectual property protection in the United States.

Use in Commerce

Use in Commerce refers to the bona fide use of a trademark in the ordinary course of trade in connection with the sale, advertising, or offering of goods or services across state lines or in commerce that Congress can lawfully regulate.

USPTO

Abbreviation for the United States Patent and Trademark Office. 

V

Valuation

Valuation is the process of determining the financial value of a business, asset, or intellectual property based on factors such as market conditions, income potential, ownership rights, performance, demand, and comparable transactions. It is commonly used for sales, acquisitions, licensing, investment decisions, taxation, litigation, succession planning, and strategic business planning.

W

Word Mark

A trademark or service mark that is registered in “text” format rather than in logo, icon, or graphic format.

X

Definition

Y

Definition

Z

Definition

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R

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R

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R

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R

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