From Coco Chanel to Michael Kors, it is common for fashion designers to use their own names (or aliases) as their brand. However, this practice comes with a number of inherent risks. Consider the following four instances in which designers who once owned successful namesake brands lost the right to use their own name in future business ventures.

• From 2005 to 2010, Roland Mouret was unable to use his own name and had to design under the name “RM by Roland Mouret” before eventually buying back the rights to his name.
• Karen Millen, in connection with the sale of her brand to the Icelandic group Baugur in 2004, lost the right to use her name on any competing future venture.
• Following a series of sales in 2011 and 2013, Catherine Malandrino lost the ability to use her name as her brand to former business partners. The owners of her trademarks later claimed that they could control her brand name and all of its related rights, including her likeness, being and persona.
• Earlier this year, Delphine Delafon lost the right to use her name after a former employee purchased the company in a liquidation proceeding in Paris Commercial Court.

So, why do designers like these and others—including Helmut Lang, Jil Sander, Hervé Léger and Joseph Abboud—lose such an important branding opportunity for their future business ventures?

The loss of designers' rights to do business under their own names may be due to various factors, ranging from disputes with business partners, bankruptcy, changes in corporate structure, or the imposition of restrictive terms in connection with an investment into, or sale of, the brand's company. Despite the potential risks associated with a namesake brand, there are steps designers can take in an effort to help protect their brand.

One of the first steps designers can take is to register their brand name as a trademark. Under the Lanham Act, a personal name is not entitled to trademark protection unless the registering person proves the name has “acquired distinctiveness” or secondary meaning. This means that consumers must associate the name/mark exclusively with the designer's brand of clothing or products. This general rule applies to first names, surnames and any combinations thereof. If a designer's name is already well-known in connection with his or her fashion designs, the designer can consider making a claim of acquired distinctiveness to show that the name/mark has established a secondary meaning. Otherwise, the designer can register the name on the Supplemental Register (which does not provide as much trademark protection) and use it until the designer is able to prove that the name/mark has established secondary meaning.

Designers with namesake brands may also insist on maintaining the rights to their name when taking on investors. Donna Karan kept possession of her trademarks when she took her company public in 1996 by establishing a separate holding company for them. After going public, Donna Karan International had to pay the holding company an annual license fee to use the marks. Although Donna Karan ultimately sold the holding company to LVMH in 2001, along with all of her trademarks, the strategic division of her trademarks enabled her to keep control of her name before she decided to sell the associated intellectual property rights.

Additionally, in the event of a sale, designers should be prepared to outline the exact parameters under which they may do business in the future without completely relinquishing the ability to do so under their own name. Specifically, designers should carefully consider how they would like to use their name on social media, in press releases, in domain names, on websites and through keyword advertising. They should also consider setting forth specific contingencies for dispute resolution, making sure any agreements they sign fully encapsulate all negotiated terms and conditions.

So, what really is in a name? If you are a designer who wants to use it, your name could deliver millions of dollars if you are strategic about it.

Danielle N. Garno, of Greenberg Traurig, focuses her practice on issues faced by the fashion community, including, start-up phase and commercial advice, intellectual property such as trademark and copyright infringement, social media marketing, advertising, anti-counterfeiting, as well as employment and general business litigation.

Alicia M. Holden, an associate at the firm when she co-authored this article, is a Miami attorney  practicing at Wargo French. She focuses her practice on corporate transactions.