A common question for entrepreneurs is: What’s the difference between a trademark and a service mark?

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So, trademarks are words, logos, phrases, or designs, that help consumers identify the source of a product or service.  

Technically, trademarks refer to words, logos, phrases or designs that help consumers identify the source of a product.  But it is commonly accepted that trademarks identify sources of products or services.

Service marks, on the other hand, are logos, phrases, or symbols that help consumers identify the source of a service.  They do not refer to products.

For example, let’s say Doctor Jen opens a small dermatology practice.  She could use a service mark of DERMAPOWER to describe her dermatology services.

And, since it is commonly accepted that trademarks identify sources of products or services, she could also refer to DERMAPOWER as a trademark for her dermatology services.

Now, suppose Doctor Tim sells skin care products. He could use a trademark of WOWDERM to describe these products.  But he would not use a “service mark” in this case because he is only describing products - and is NOT describing services.

So, why do we care about this difference?  

Well, a lot of companies use the TM or SM designation in connection with their trademarks or service marks before they become federally registered.

Then, once the trademark or service mark is registered, they would remove the TM or SM designation, and replace it with the Registered R symbol.

As background, TM refers to a Trademark, which TECHNICALLY refers to products, but it is actually commonly used to describe both products AND services.  SM refers to a service mark, and only refers to services.

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So, let’s say Doctor Jen has applied for federal trademark registration, but it hasn’t yet registered.  Because she can’t use the Registered Symbol yet, she would have to decide whether to use the TM or SM symbol.

So, if Doctor Jen is using DERMAPOWER in connection with her dermatology services, she could use the TM OR SM symbol.

She could use the TM symbol because the TM symbol is often used to describe products OR services. Or, she could use the SM symbol because she is using DERMAPOWER in connection with dermatology services.

But, let’s go back to Doctor Tim using WOWDERM in connection with his skin care products.  In that case, he could use the TM symbol, because the TM symbol commonly applies to either products or services, and he is selling products.  But, he would NOT use the SM symbol, because SM symbols ONLY apply to services – and here he is only selling products.

To recap, unregistered trademarks designated by the TM symbol are commonly understood to refer to either products or services.  On the other hand, Unregistered Service marks that are designated by the SM symbol refer to JUST services.  

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