How a naming conflict cost one startup $20,000

Executive overview

Picking a name without checking trademarks in every target market can turn a minor oversight into a costly legal and competitive battle. A competitor holding the same name in Russia forced a bidding war on Google Ads before eventually settling for $20,000.

Register trademarks early — in every country where you plan to operate.

The moment you commit to a name, file for trademarks; the longer you wait, the more it costs.

The naming mistake and how it escalated

• Original startup name (MP Reserver) confused customers, who thought it was a server company
• New name LinguaTrip was chosen because "lingua" resonated with Spanish and Italian speakers — the core target market
• LinguaTrip.com was available; LinguaTrip.ru appeared dormant and was ignored
• Russian customers began booking on the .ru site, which had copied the same business model
• Both companies started bidding on "LinguaTrip" in Google Ads, driving costs up sharply
• The .ru owner had a registered trademark in Russia — giving them significant leverage

The negotiation and settlement

• Competitor initially demanded $100,000 — more than the startup had raised at the time
• Team considered rebranding rather than paying
• Eventually settled for $20,000 after the competitor found the ad war unsustainable
• The $20,000 covered both the domain and the Russian trademark

Action plan for founders

• Register a trademark in the US via USPTO — the process is straightforward and can be done without a lawyer
• File in every country where you plan to operate, not just your home market
• In Europe and the UK, use a trademark professional — especially for names with existing similar brands
• Since 2021, UK trademarks are no longer covered by EU law and require a separate filing
• Act before you grow — the more traction you have, the more a squatter will demand