Due to the recent reform of Articles 18 subsection 6), 76, 77, 103, 234 subsection b), and 245, as well as the repeal of Article 235 bis of the Costa Rican Commercial Code, companies will no longer be able to register their name with the Mercantile Registry. The only way to legally protect it will be through registration with the Industrial Property Registry.

Previously, individuals seeking to establish a legal entity could choose a company name, typically followed by the abbreviations S.A. or S.R.L. However, following the reform, the National Registry will automatically assign a corporate identification number which will serve as the sole official identifier for companies.

This reform aims to simplify and streamline the incorporation process by removing the name availability verification requirement and reducing related formalities.

What happens if a company wishes to protect its name?

If a company wishes to incorporate and protect a specific name, it must register it with the Industrial Property Registry. Since it is no longer possible to choose a name during the incorporation process, the company will be identified solely by its corporate ID number, followed by the abbreviation S.A. or S.R.L.

The name can be registered either as a service mark or as a trade name. However, registering it as a trade name provides broader protection, as it covers the commercial establishment where the company’s core business activities will take place.

What happens if a company with a previously registered name wants to change it?

If a company currently has a registered corporate name and no longer wishes to use it, the only available option will be to adopt its corporate ID number as its official identifier, followed by the designation S.A. or S.R.L.

Are corporate names truly protected, or can someone later register a similar trademark?

No, names registered only with the Legal Entities Registry are not granted the same level of protection. Trademarks registered with the Industrial Property Registry take precedence over names registered with the Legal Entities Registry. This means a trademark can be successfully registered at the Industrial Property Registry even if a company with the same name already exists, as trademark examiners only review records within the Industrial Property Registry.

As a result, a company whose name is registered only with the Legal Entities Registry runs the risk of having its name copied or used by others.

What are the benefits of registering a name at the Industrial Property Registry?

Protecting a company’s trade name offers stronger legal safeguards and plays a vital role in brand identification. It is a key asset that helps consumers recognize and distinguish a business, contributing to the development of a strong and trustworthy reputation.

Some of the main benefits of registering a trade name include:

• Legal protection and exclusivity

• Avoiding confusion

• Strategic and commercial value

Is it mandatory to use registered trademarks or trade names?

Yes, the use of registered trademarks or trade names is mandatory within five (5) years from the date of registration.

The consequence of not using trademarks or trade names after a period of five (5) years is that they may be at risk of a cancellation action being filed by an interested third party due to non-use.