What are common law rights in trademark law?

Common law rights in trademark law are established through the actual use of a trademark in commerce, irrespective of whether the trademark is registered with the United States Patent and Trademark Office (USPTO) or not. This means that a business can gain protections for its mark simply by using it in connection with the sale of goods or services, which is typically known as "common law" trademark rights.

These rights can arise in any geographical area where the mark is used, allowing the owner to prevent others from using a confusingly similar mark in that area. Since common law rights are based on use rather than registration, they can provide meaningful protection for small businesses operating locally or regionally without the need for formal registration. Furthermore, while registration with the USPTO provides several benefits, such as nationwide protection and legal presumptions, the absence of registration does not negate the existence of common law rights.

Options that refer to rights established only through registration, rights transferring through contracts, or rights granted exclusively by the USPTO do not accurately describe common law rights, as these concepts rely on formal processes that do not apply to rights gained through mere use in commerce.