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Advanta Forces Avanta to Become ‘Altana’
Posted By Editor On June 15, 2009 @ 4:21 am In CU Name Changes,Trademark Law | 6 Comments
The erstwhile Laurel Federal Credit Union is being forced to spend more than $80,000 changing names — again — five years after becoming Avanta FCU.  Last year, Advanta Bank  in Utah, enforced its federally-registered trademark on the word “Advanta” by giving the Montana-based credit union one year to change names or face a lawsuit.
“We thought we’d done due diligence before, but the attorney said it is close enough and you won’t win,” said Tracy DuFresne, VP of HR and Marketing for the credit union, in an interview. 
The shift to Altana becomes official on July 1. The credit union says the bulk of the $80,000 cost will be spent changing the signs inside- and out on its seven branch locations. 
Key Question: What about lawyers’ fees? And five years after becoming Avanta, won’t everything need to be replaced — debit cards, credit cards, business cards, forms, brochures, website, merchandising, etc.? Doesn’t that sound more expensive than $80,000?
Indeed a name change is no small undertaking. “It’s massive. We have different people in different areas taking care of this,” credit union CEO Rhonda Diefenderfer told the Billings Gazette. 
The credit union received permission from the state and the NCUA to switch from Laurel FCU to Avanta back in July 2004.
Reality Check: Just because the NCUA or your state’s financial division says it’s okay to use a name doesn’t mean you won’t get sued. Their evaluation of a name includes only a limited and superficial look at similarities with competitors.
Oddly, an AP article  on the story mischaracterizes the situation as a “patent dispute.” Patents, while issued from the same federal agency as trademarks, protect processes and inventions, not brand assets. This is purely a trademark issue, and patent law doesn’t have any bearing on the case.
No fewer than five different stories on the snafu appeared in the mainstream media following the credit union’s announcement at its annual meeting last weekend. Despite all the coverage in the last week, there was no message, update or press release  regarding the name change on the credit union’s website.
Presumably, the credit union chose Altana because it was the name that was legally available that most resembled the Avanta name. The new name is what’s known as a neological- or “coined name,” and has no literal meaning.
“Out of more than 300 names, we gave 90 to the attorney,” said Rhonda Diefenderfer, president of the credit union. “Maybe four names survived in her formal search process.”
The credit union has applied for a federal trademark for its new name.
There is another Altana,  a chemicals and coatings company in Germany, but they don’t represent any threat to the Montana-based credit union.
Altana FCU has over 22,000 members and around $200 million in assets. 
Key Takeaway: It’s almost impossible to find a real word that isn’t already trademarked in the financial industry.  Coined- and unconventional names are the safest path. Not only are you more likely to end up with a unique, differentiated name, you will likely dodge a mountain of legal nightmares. Unfortunately in the case of Avanta, the coined name they picked was too close to something that was already trademarked.
Article printed from The Financial Brand: Marketing Insights for Banks & Credit Unions: http://thefinancialbrand.com
URL to article: http://thefinancialbrand.com/6794/avanta-fcu-becomes-altana/
URLs in this post:
 Avanta FCU.: http://www.avantafcu.org/
 Advanta Bank: http://www.advanta.com/
 an interview.: http://www.missoulian.com/articles/2009/06/09/bnews/br73.txt
 Image: http://thefinancialbrand.com/wp-content/uploads/2009/06/advanta-trademark.gif
 seven branch locations.: http://www.avantafcu.org/about/locations.html
 told the Billings Gazette.: http://www.billingsgazette.net/articles/2009/06/09/news/local/24-lawsuit.txt
 an AP article: http://thefinancialbrand.com/twittersplit.html?http://www.pddnet.com/news-ap-patent-dispute-means-name-change-for-credit-union-060909/
 Image: http://thefinancialbrand.com/wp-content/uploads/2009/06/altana-trademark.gif
 Altana,: http://www.altana.com/
 altanacu.com: http://altanacu.com
 altanacu.org: http://advantacu.org
 avantacu.org.: http://avantacu.org
 $200 million in assets.: http://www.creditunions.com/data/cusearch/default.aspx?id=7520
 already trademarked in the financial industry.: http://thefinancialbrand.com/2009/02/25/financial-trademarks/
 over: http://thefinancialbrand.com/2008/01/08/alabama-cu-sues-the-credit-union-of-alabama-fcu-over-name/
 over: http://thefinancialbrand.com/2007/12/17/judge-blocks-use-of-banks-citizens-name/
 over: http://thefinancialbrand.com/2008/11/14/naming-snafus-plague-multiple-commerce-banks/
 over: http://thefinancialbrand.com/2008/08/25/two-vista-banks-in-texas/
 over: http://thefinancialbrand.com/2008/11/18/american-state-bank-name-problems/
 over.: http://thefinancialbrand.com/2008/06/09/negative-keywords/
 look up trademarks: http://thefinancialbrand.com/2008/12/11/looking-up-financial-trademarks/
 : http://thefinancialbrand.com/2009/06/05/colorado-springs-becomes-aventa-credit-union/
 : http://thefinancialbrand.com/2009/06/05/colorado-springs-becomes-aventa-credit-union/#comment-2379
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