What is protected under common law in relation to trade names?

The protection of goodwill associated with a trade name under common law is rooted in the concept that a trade name can reflect the reputation, customer relationships, and overall market presence of a business. Goodwill encompasses not just the brand's recognition in the marketplace but also the trust and loyalty that customers develop over time as they engage with that brand.

When a trade name is established in a particular market, it gains a certain level of protection under common law, which helps prevent others from using a similar name that could confuse consumers or infringe upon the original business's reputation. This protection is vital because goodwill is often one of a company's most valuable intangible assets. Unlike innovative ideas, existing contracts, or future business plans, goodwill is something that can be quantified and is directly linked to consumer perception and loyalty, making it deserving of legal protection in the context of trade names.