It is common for entrepreneurs to spend years of their lives, in addition to their blood, sweat and tears to grow a company and the name associated with it. That name can be not only dear to those who invest in it but it can also become a very valuable piece of property.
It is also not unheard of for entrepreneurs to invest in a name, only to be stopped in their tracks by a larger, established company who has been using a similar name previously. Additionally, it is possible for unscrupulous competitors to try and use the same name as the true innovators who did not properly reserve it.
To avoid such problems and unhappy surprises later, it makes sense for entrepreneurs to reserve and protect the name – the ‘brand’ – as early as possible, before significant resources are invested in it.
Source: Smartup Legal