Naming SNAFUs Plague Multiple Commerce Banks
Okay, sorry, this gets a little complicated. There was a Commerce Bank in New Jersey. But earlier this year, TD Banknorth took them over. That merger created a huge naming hassle — including a lawsuit from a Commerce Bank in Massachusetts — over the Commerce name. In the end, the Massachusetts bank prevailed, preventing the Canadian behemoth from using TD Commerce, the name it preferred.
Now, a Commerce Bank — this one in Pennsylvania — is merging with Philadelphia-based Republic First Bank. These newlyweds are opting for Metro Bank as their new name. The combined company will have total assets over $3 billion and more than 1,200 team members. The company will pursue an aggressive growth strategy with new stores in Central Pennsylvania, Southern New Jersey and other markets.
The trouble is, there is already a Metro Bank in Houston. And one in Alabama. And another in Florida. Oh yeah, and one more in Georgia.
A collection of Metro Bank logos from various financial institutions from around the country.
Notice the use of circles containing an ‘M’ or ‘M’ symbol in each of the logos.
But wait… There’s more.
There’s also a First Metro Bank in Alabama, an American Metro Bank in Illinois, and a US Metro Bank in California.
Reality Check: You shouldn’t use another bank’s name — ever.
- It doesn’t help differentiate you.
- It makes it harder for people to find you online.
- It exposes you to all kinds of legal problems over trademarks.
Contrary to popular belief, it doesn’t matter if the bank is in another state. If you pick a name identical to another financial institution, you’re opening yourself up to a world of legal hurt. It doesn’t even have to be identical, as was the case with TD Commerce.
Bottom Line: If your bank or credit union is considering a name change, avoid new names that sound safe and familiar. Avoid them like the plague. It takes less than 5 minutes in Google to see what kind of trouble you can expect.
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I guess Vernon Hill would beg to differ with you…he of course is the unifying thread in this story as he was the head of Commerce (the one that is now TD Bank) and he recently invested heavily in Republic First which will become part of this newly named Metro Bank.
Not sure how much influence he will have, but few would argue that he didn’t eventually “own” the name Commerce on a regional (if not national) scale with his big-budget media buys and well executed marketing plans. If this new Metro Bank employs the same strategies there is no reason to assume they can’t do the same (though that could just be my right-coast-centric thinking).
(btw, I’m not rooting for that…just pointing out that pretty much the same crew has done it before)
Hi Marc. Thanks for the comment.
The New Metro Bank can give it a whirl and see if anyone squeals. But if one of the other Metro Banks — specifically the one in Houston that has the federally registered trademark on “Metro Bank” on-file with the USPTO — decides to sue, New Metro Bank might find itself in a highly indefensible legal position. A federal trademark applies (as the name implies) to the entire country — not on a state-by-state or regional basis.
“Owning” a name in the marketplace isn’t the legal standard. Trademarks are established on a first-come basis. There are many stories out there about small companies (think: “bank with one branch”) that have derailed the naming plans of super-huge corporations.
This is what happened with TD/Banknorth/Commerce. The Commerce Bank in Massachusetts only has around 9 branches. That doesn’t matter. They were first to use the Commerce name in that state. That gives them the right to stop anyone else.
You can buy brand awareness, but you can’t “buy” a trademark. If someone else was using the name before you in that specific industry, you’re in a vulnerable trademark position.
The neat thing about trademark law is that it protects small guys from 800-pound gorillas. Public perception about who is the dominant player makes no difference. If the courts feel you could confuse someone with your new, similar name, then tough luck.
In all likelihood, the vast majority of banks out there picking similar-sounding names aren’t aware of how trademark laws work. They may think that another bank in another state can’t stop them, but they may be very, very wrong.
Similarly, banks watching others pick names like theirs might not be aware of their options. They may just think, “Well shoot. That’s what everyone does in our industry. This sucks. Bummer.”
I’d give Vern (and team) credit for having thought it out having been so close to the fire with the Commerce ->TD Bank name hiccups.
Crystal ball certainly sees lawyers but bankers have learned never to count Vern out.
FYI – The official owner of the registered trademark for “Metro Bank” is the one based out of Houston, Texas. They filed in December, 2001 and received registered status in August 2005. They’ve been using the name since May, 2000. According to the bank’s website, they have “10 full-service locations in the greater Houston area and 3 full-service locations in the Dallas metropolitan area.”
http://www.metrobank-na.com/locations.asp
It seems that at least 2-3 Metro Banks have bit the dust. One in Florida, MetroPacific in California, and a Metropolitan Savings in Pennsylvania.