For years, many companies in Costa Rica operated under a fairly simple assumption: incorporate the company, choose a good name, and assume —almost by default— that this somehow gave them protection.

That logic no longer holds. And the real issue is that many businesses haven’t fully caught up with this shift.

With recent changes in Costa Rican registry practices, companies are increasingly being identified through alphanumeric names, effectively breaking the traditional link between a company’s legal name and its commercial identity. In practical terms, a company can exist perfectly… without that having anything to do with protecting the brand it uses in the market.

That’s where problems begin.

A costly misconception that hasn’t gone away

It’s still common to see businesses assume that “having a registered company” equals having a protected brand. It doesn’t. It never really did—but today, the gap is even more evident.

The Commercial Code governs the existence and structure of companies (corporate name, legal framework, organization), but it does not protect distinctive signs in the marketplace. That responsibility falls under a completely different legal framework.

Trademark protection in Costa Rica is governed by the Trademark and Other Distinctive Signs Law No. 7978, particularly provisions such as:

• Article 1: establishes the purpose of the law, which is to effectively protect the legitimate rights and interests of trademark holders and holders of other distinctive signs.
• Article 2: defines key concepts such as trademark, commercial name, emblem, distinctive sign, and certification mark.
• Article 3: defines the signs that may constitute a trademark.
• Article 4: regulates priority to acquire the right derived from trademark registration.
• Article 5: regulates the right of priority for trademark applications filed abroad under applicable international frameworks.

In practical terms:

You can have a properly registered company… and still have no exclusive rights over the name you use commercially.

The new landscape: companies without a “usable commercial name”

With the shift toward alphanumeric corporate identifiers, something that used to create confusion is now much clearer:

Your company’s legal identity and your brand identity no longer go hand in hand.

This forces a strategic separation between:

1. The legal structure (company)
2. The brand identity (what clients recognize and remember)

And if that brand is not registered, it remains exposed.

The most common mistake after registration

Even businesses that do register their trademark often make a second mistake: assuming the job is done.

It isn’t.

Registration grants rights—but those rights need to be actively managed and enforced.

What happens if you don’t?

• Similar marks start appearing in the market
• Your positioning becomes diluted
• You miss opposition opportunities at the Registry
• Your exclusivity weakens over time

A trademark does not protect itself. It requires ongoing monitoring.

More than a formality — a strategic decision

In Costa Rica today, the message is clear:
a trademark is no longer just a legal checkbox—it’s a strategic asset that requires active management.

It’s not enough to incorporate a company.
It’s not enough to register a trademark once.

You need alignment between legal structure, commercial strategy, and legal protection.

Because in this new landscape, businesses that fail to organize their intellectual property early end up dealing with conflicts that could have been avoided from the start.

📩 Contact us at info@bluezonelegal.com to schedule a consultation or request assistance with your trademark applications.

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The information contained in this blog is provided for informational purposes only and does not constitute legal advice, nor does it create an attorney-client relationship. Readers should not act upon this information without seeking appropriate professional counsel.

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