Ask HN: Do you incorporate your web apps or register them as trademarks? | Hacker News Reader

Ask HN: Do you incorporate your web apps or register them as trademarks?

11 pointslpdahito4 comments

Hey guys,

Let's say I have a company that has a portfolio of web apps like 37signals, do I need to incorporate every single app that I develop? Can I just register them as trademarks that belong to my company?

In other words, is it preferable to incorporate each web app as a distinct company/subsidiary, owned by my "main company" or is it better to just register them individually as trademarks that belong to my company?

What are the advantages/disadvantages?

thank you.

View on HN

From the 37signals.com footer:

The names and logos for Basecamp, Highrise, Backpack, and 37signals are registered trademarks of 37signals, LLC. The names and logos for Campfire, Ta-da List, Sortfolio, and Writeboard are trademarks of 37signals, LLC.

Not speaking here as a legal expert or anything of that nature, but I can't think of a reason why you would make a different company for each app; there would be no need. Disadvantages there include lots of fees, paperwork, and headache.

If one app is particularly likely to invite trouble (e.g. Apple might sue your pants off), it might be a good idea to incorporate them separately so that even if that app goes bankrupt, all your other apps can completely ignore the blow. IANAL, but I know of companies that do such things for precisely this reason.

If you are a company that makes apps, you should trademark those apps under your company's name. That's the most obvious and elegant way to do things.

If you're looking to separate a specific app from your company, whether to branch it out as a second company, to separate assets or to sell it off entirely, I would incorporate the app and trademark under that entity.

The advantage of the first is its simplicity. A disadvantage would be, like chc said, if you're sued, all of your eggs are in one basket of liability.

The advantage of the second would be legally separated liability. The disadvantage is paperwork and fees.

Reply on news.ycombinator.com