Registering your company's name as a trademark isn't legally required, but it can pay off down the road.

Nick, Seattle
I am starting a clothing company and need to copyright the brand name. What is the best way to do this on a tight budget?

By Kathleen Ryan O’Connor, CNNMoney.com contributor
The difference between copyright and trademark isn't always obvious, but the distinction matters here.

Both are ways of protecting intellectual property, but copyright generally protects "original works of authorship" like a book, song or poem. A trademark covers the right of such things as brands, titles and logos. In your case, establishing and protecting the brand name of your clothing company is clearly a trademark issue.

There are plenty of low-cost ways of accomplishing this, none of which even require a lawyer. Do-it-yourself legal sites like LegalZoom or Nolo can be great resources for registering a trademark. The do-it-yourself cost ranges from $150 or so for a basic package to around $400 for more bells and whistles. LegalZoom, for example, will search the federal trademark database for direct conflicts – if you try to give your clothing company a name another clothing company has already trademarked, your application will be rejected – and perform a comprehensive state and common-law search. Absent conflicts, you, a lawyer or a legal service will prepare a federal trademark application and file it with the U.S. Patent and Trademark Office. The USPTO Web site has a wealth of information, including an extensive FAQ section and a fee schedule if you choose to file directly on your own.

There is nothing that says you must trademark your name, says Oliver Herzfeld, chief legal officer for The Beanstalk Group, a brand licensing consultancy in New York. You technically gain rights and protection just by using the mark – but there are advantages to owning a federal trademark registration. The registration will give you an exclusive right to use the name nationwide, certain overseas rights, and a legal presumption of ownership.

Registering your trademark is only the start of defending your corporate name. For your rights to a trademark to continue, you have to use it, protect it against infringers, and renew it. The history of brand names is littered with aspirins, cellophane and crock-pots – all former trademarks that lost their protection because their use became generic.

The most fraught venue for trademark disputes is the Internet. In that realm, trademark fights pop up constantly, according to Mark A. Lemley, a professor at Stanford Law School.

First, take keyword advertising. Companies frequently buy ads that appear on search results for competitors' trademarks. "If a consumer searches for Honda, a Toyota ad might come up if Toyota has purchased the right to place an ad there," Lemley says. "There is a lot of litigation on this, with inconsistent results so far."

Another trademark issue on the Internet is the problem of geography.

“Your name may be unique in your hometown, but someone across the country or across the world may use the same name, and online there are no geographic boundaries,” he says. “So we get all kinds of conflicts – does the domain name delta.com go to the Delta Faucet company, Delta Airlines, or Delta Dental plans, for instance?” So far, the tendency is to register domain names on a first-come, first-served basis.

“But we also have circumstances in which a small company who is first runs into a large company that comes later. Amazon (AMZN), for instance, is the name of a long-standing women's bookstore in Minneapolis,” Lemley says. “When Amazon.com began selling globally, the bookstore sued because it was confusing their Minneapolis consumers, and Amazon.com had to buy out their rights to online sales.”

As you pick out your company name, it pays to plan ahead and chose the strongest possible trademark. Very specific and descriptive names are easier to defend than broader ones, and the strongest trademarks are extremely unique. “Fanciful” marks like Exxon (XOM) or Kodak, essentially made up words, are the easiest trademarks to protect, Herzfeld says.

Once you have your name, be sure to police it. Patents last 20 years and copyrights live on for 70 years past the death of the author, but trademarks can last forever as long as you monitor them and follow the rules. ”That’s a huge benefit,” Herzfeld says.

Give us your advice: Check out recent “Ask & Answer” questions.

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A good distributor can make or break your product line. Here's how to find the right one.

Deziree Williams, Sugar Free Baby, Los Angeles
I have a children's eco-friendly clothing line. We are taking it slow because we are branding our line and are in some ways picky about who we sell to. I have recently been approached by a distributor, but I'm not sure if this is the best way to launch into the market. Any advice?

By Emily Maltby, CNNMoney.com writer

By the look of your Web site, SugarFreeBaby.com, it seems you are off to a great start. You've evidently taken the right steps to approach the smaller retailers already, as your line is already in a number of stores.

You are wise to be conservative about which storefronts represent your line. But as you expand, part of your decision about working with a distributor will depend on whether you want to stick to the small stores or get to the national chains. You can continue to go it alone if you stick to the smaller outlets, but a distributor is essential if you want to reach out to the big guys.

"Large retailers want to see someone in the buyer's office that they already has a relationship with – someone who knows the system," says Gordon Cundell, a former assistant buyer with Sears Canada and current president of the Canadian Sporting Goods Association, an information service for sports equipment and apparel buyers and sellers.

Working with a distributor could be a smart move even if you want to indie shops. "Suppliers often have the passion needed for a successful product, but no business sense to get the product in to the right places," Cundell says. "Chances are the average clothing designer doesn't even know all the distribution channels that are available."

And of course, even if you have the knowledge to do the job, you may be stretching yourself too thin by taking on the daily activities of a distributor.

"One benefit of using a distributor is that ideally you have one place to ship your goods to. They break it out and do all the individual shipping and selling for you," says Rob Reger, president of Cosmic Debris and creator of the gothic Emily the Strange product line, which is sold internationally, in 200 independent boutique stores, and in large chains such as Hot Topic and Borders. "This leaves you with designing and manufacturing, keeping the quality control in your hands."

If you decide to work with a distributor, picking the right one is critical. What should you be looking for?

Both Reger and Cundell say your distributor's vision is crucial to a successful relationship. You need a partner who fully understands what type of customer you're targeting, and who has ties to retailers that serve your market.

"Taking it slow and building your brand with a specific core customer in mind is wise," Reger advises.

"Find out what they already distribute," Cundell says. The other lines they represent should be similar but not exactly the same as yours.

You'll want to find children's clothing distributors who don't currently have green attire in their lineup – if the distributor already has eco-friendly offerings, "you risk the lines competing with each other," Cundell says.

Give us your advice: Check out recent “Ask & Answer” questions.

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We asked the experts and created a step-by-step guide to getting noticed on the fashion scenes.

Samantha Risto, Risto Designs, New York, NY
I recently launched a small women’s clothing business in New York out of my apartment. I would like to know how I can sell to small retailers and boutiques. Do I just show up at their store with samples in hand or is there an "established" way of doing this?

By Emily Maltby and Shara Rutberg, CNNMoney.com
The answers are yes and yes: You can show up at a store, but there is an established way of doing so.

"A scattershot approach won’t work," says Ira Davidson, director of Pace University’s Small Business Development Center and a former buyer for Abraham & Strauss, a famed New York City store that later became part of the Macy’s chain. "You have to have some discipline."

The best way to establish yourself is to start small. Boutique retailers should be your training wheels for the department stores.

"The boutiques will help you learn the process of how to run a business and show you how quickly you can manufacture the goods, and how to structure the orders," says Bliss Lau, an accessories designer who now has her line in more than 40 stores worldwide, including department stores in Japan. "The smaller retailers will be more flexible. If you manage to get into a large department store off the bat and the goods miss the deadline, you'll lose the order."

So how do you get your foot in the door at a small boutique? First, carefully identify your target stores. Then, reach out to them by visiting or making appointments. To increase your chances, find out what time the owner or the buyer is in the store, make a business card, and wear your line when you drop by, Lau suggests.

This method takes a thick skin, so you can't be afraid of rejection. Lau once took a train from New York to Washington, D.C., getting off at each stop to pop into stores. "I got flat-out rejected by half of them and had a great time at only one of them. But the way I saw it, I scored a new client, which was great," she recalls.

Many retailers don't think the drop-ins are effective.

"It happens frequently in my store, but it's usually not a good time to engage in conversation because the customers have to come first," says Candice Waldron, owner of boutique store Jumelle in Brooklyn. "Making an appointment for before-store hours is better."

Yvonne Yip, head buyer at Big Drop, also in New York City, thinks that the most effective way to get exposure is to mail in a Look Book. "About 10 pieces, photographed from different angles and put together in a professional way, will speak for itself," she says. "Also make sure the book includes a line sheet describing the items and listing the prices of each."

Your sample line is critical, says Linda Carter, president of The Retail Management Advisors, a Dallas-based retail consulting firm.

"Do not go with 50 samples," Davidson says. Six to 12 of your best styles is enough. And don’t forget to bring a color swatch book, showing off small squares of the fabrics for your line.

But buyers don't simply wait for designers to come to them. Yip finds most of Big Drop's products in fashion showrooms.

"Sales reps at the showrooms have connections to us. They know how to best present the lines and they know how business is done," she says. "Nine times out of 10, it's easier for us to work with a rep than with the designer." Most showrooms will have multiple lines, so when Yip goes to see one line that has piqued her interest, she often gets to see four or five others as well that she wasn't expecting.

Showrooms charge designers for the space, and often for commission as well. Before you sign on with one, research the reputation of the showroom. Notice what other lines it showcases – if the showroom carries denim and you also have a denim line, they may compete with each other. Pick a showroom that has lines that will complement yours.

And be wary if the turnover is quick. "If the showroom features the same designer for a few years, it speaks very highly of the relationship," Yip says.

In addition to a sending out a book and displaying your work in a showroom, you should hop online and see what trade shows cater to your type of customer, Carter says. There are many run all throughout the year, especially in New York City. "It can be costly right off the bat to rent space, but may be less expensive in the long run as far as letting people know who you are and what you offer," she says.

"When I first started my company five years ago, I went to every trade show and conference I could find and would chase down all the big name sales reps," Lau says. "I'd show them any piece of press that was written about me and ask them for suggestions about my line."

If you do pursue trade shows, don't forget to focus on also getting your designs into local stores. "Big stores send buyers to trade shows, but then they continue their research at the boutique shops," says Jumelle's Waldron. "Buyers from Anthropologie and Harvey Nichols come to my store because they know the smaller stores are more willing to take risks with the designers."

If you're looking to break into the big leagues, make sure you have your manufacturing operations in order and are ready to expand your business to handle the demands of department stores.

"You have only one chance with the big players," Yip says. "You can't go from zero to 500 units, so put your designs in the boutiques to work out the kinks."

For more advice, Bliss Lau recommends The Fashion Designer Survival Guide by Mary Gehlhar.

"From having a fashion show to a company to pitch, it is a wonderful book for the creative mind," Lau says.

Give us your advice: Check out recent “Ask & Answer” questions.

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If you want to reach a national audience through the home-shopping networks, you'll need mass-manufacturing capabilities and a catchy storyline.

Mona Kahn, Salt Lake City
I am a jewelry designer and I want to present my merchandise to a larger audience. How do I get my products on ShopNBC, QVC or similar outlets?

By Christina Crapanzano, CNNMoney.com contributing writer
The application process is quick and painless. Both ShopNBC and QVC have applications available online for downloading, and both sites offer guidelines for product submissions. You'll need to send in digital photos of your product and answer questions about your manufacturing process and price point. The networks are looking for vendors who already have a product – they aren't interested in ideas, sketches or prototypes.

We asked the shows' vendor scouts to tell us a bit more about how they pick new products to feature.

QVC has more than 10,000 applicants each year, and also recruits vendors from trade shows or craft fairs. From that, only about 500 new vendors are introduced on-air each year.

"Don't be redundant," says Marilyn Montross, QVC's director of vendor relations. "The first thing we look at is the product. For jewelry, we're asking, 'is this something new and innovative versus products we're already selling?'"

The same philosophy holds true at ShopNBC. "The product is the star of the show," says Anthony Giombetti of ShopNBC's media relations department.

Watch the networks you are applying to and get to know their current products and vendors. That will also give you an idea of their target audience and your potential customers. For ShopNBC, the typical viewer is over the age of 45 and is affluent, with an average household income of more than $70,000. QVC says its customers are predominantly women, though its demographic changes hour-to-hour depending on programming.

Knowing your audience's tastes is only the first part of the battle. The next step for applicants is demonstrating a capability to produce in mass quantities.

"They have to have their ducks in order," says ShopNBC Chief Merchant Kris Kulesza. "If you can only make five to 10 units of something, that could close the door." ShopNBC, which broadcasts to more than 70 million homes, might ask vendors to have as many as 5,000 units available.

However, QVC's Montross warns against jumping the gun – never manufacture large quantities of your product on spec before getting approval from the network. They want to see that you are capable of manufacturing mass quantities, not that you've already done it.

The volume demand usually rules out hand-crafted items.

"In order to do both the volume and quality, [vendors] need to be working with a pretty sophisticated manufacturing factory," Montross says. In rare cases, networks might put vendors in touch with manufacturing companies, but they will not pay manufacturing costs.

"[Merchants] have to be willing to make an investment," Kulesza says. "Not everything will take off or sell out from the get-go. You may have to make an investment up front."

Something else the networks seek: A personality and a story to go along with the product. If you become a vendor, you will likely present your product yourself. You should be prepared with all the elements that go into making compelling TV, such as a good storyline with twists and turns. You'll want to have themes and variations in your product line that you can discuss.

Finally, don't be shy. Be able to talk enthusiastically about your product, both to the vendor scouts and also, potentially, on air.

Persistence is key: Kulesza says that if you submit an application and get no word back, "Don't be afraid to make the call directly to us."

Amir, Chunky n Chic, Salt Lake City
My wife and I have been making and selling hand-made, semi-precious jewelry for the last 5 years. People really love the variety, quality, unique designs and the price. We usually use chunky stones and therefore named the business as Chunky n Chic. As we grow, should keep the name or change it?

What do you recommend? Leave a comment below with your answer.

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Peisy Alamsjah, Ann Arbor
I am an undergarment manufacturer (peisylee.com). How can I sell my product to Wal-Mart (WMT) or another big company? Thank you.

What do you recommend? Leave a comment below with your answer.

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Shawn Epps, Wichita Falls, Texas
I am selling unique athletic socks made of microfiber. People love them, but I can't get into stores or get my website to generate sells. I have all my legal stuff taken care of, and I have handed out countless business cards, and given away a lot of free samples. What tips can you give me to help get my online business booming without going broke? Check out my products at urbnelite.com.

What do you recommend? Leave a comment below with your answer.

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Elisa McCoy, Redwood City, Calif.
I own an apparel screenprinting business that has a strong client base, and I am looking to develop an online store. I have tried researching e-commerce companies online and am more confused than when I started. I don't know which to choose. Any suggestions?

What do you recommend? Leave a comment with your answer.

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A small apparel manufacturer struggles to comply with the giant retailer’s requirements.

Carolyn Deason, San Antonio, Texas
I got lucky and showed my shirts to Wal-Mart locally. They love them, and one store has already ordered $2,700 worth of shirts and plans to order more this month. Other stores wish to order as well. I am a home-based business, very small, in business less than a year. Wal-Mart pays their invoices net 30 and requires me to tag the shirts with bar codes. Once I am in their vendor system, I can sell nationally. It's a great opportunity, but how do I afford the initial expenses to do business with Wal-Mart? It will run close to $6,000 to pay for manufacturing, printing, bar codes and tags.

By Soo Youn, Fortune Small Business Contributor
Dear Carolyn: If you can get binding purchase orders from the other Wal-Mart stores, that will make it easier to borrow money, says Chicago business consultant Ken Gaebler, chairman and CEO of Gaebler Ventures.

“Banks and individual lenders won't lend based on the entrepreneur’s hopes and expectations that other stores will soon be ordering,” he says.

Michael Diegel, national media director for the National Federation of Independent Business, agrees. “If you have orders in hand from Wal-Mart, you should be able to borrow from a local bank. If not, you should seek outside investors through your local Small Business Development Center, Chamber of Commerce, or personal network of friends and family. $6,000 is a small sum for many investors and should not be difficult to raise. The key is having the order.”

Be prepared to look at alternatives though, warns Mitch Jacobs, CEO of On Deck Capital. “Unfortunately, the size of the loan you are seeking, the amount of time in business, and the general uncertainty about your future (despite your great progress) make a traditional bank or SBA loan an unlikely source of financing,” he says.

A peer-to-peer lending site such as Prosper.com can also help you reach potential lenders. Another option Jacobs recommends is a loan management platform such as Virgin Money, which enables you to borrow from family members and friends in a structured and professional manner.

Another alternative is a home equity line of credit. “If you can borrow against any existing equity that you have, this can be a good source of short-term funding,” says Gaebler. “You just need to make sure that you are running the business in a profitable, responsible manner that won't jeopardize your personal finances.”

As a last resort, you could consider using an existing personal credit card or applying for a new one, assuming your personal credit is in good shape. But be careful.

“You will be approved on your personal credit score, which will increase your personal credit utilization,” says Jacobs. That could adversely effect your credit profile in the long run, so only do this if you’re absolutely certain you can manage the payback and the balance.

He adds: “Before taking any of these steps, make sure that Wal-Mart’s ‘always low prices’ still leave you with enough gross margin to cover the costs of the bar-code system and other fixed investments on the number of units you expect to sell.”

However, you should really do some research before you jump into a relationship with Wal-Mart – especially if you are having trouble getting your initial financing, say the superstore’s critics.

“You need a big dose of caution and reality,” warns Charles Fishman, author of The Wal-Mart Effect. “Many large companies have gotten into difficulty trying to supply Wal-Mart, while keeping their existing customers supplied, and struggling to maintain profitability and logistics as Wal-Mart's needs grow, and its pricing pressure takes hold.”

Fishman recommends connecting with some relatively small companies that already do business with Wal-Mart. “One way to do that is to simply go to Wal-Mart and pick some products from small suppliers, and track down their managers,” he says.

Give us your advice: Check out recent “Ask & Answer” questions.

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Dissolving business partnerships is more like divorce than divestment.

Mandy Hinrichsen, Drexel Hill, Pa.
My business partner and I are equal owners of a hair salon. We have a partnership agreement. I work hard and enjoy my job. My partner, on the other hand, is burnt out. She never shows up to work and when she does, she sits in the office on the phone handling personal business. I want to buy her out, but she refuses. What can I do?

By Paul Roberts, Fortune Small Business contributor
Business partners stuck in a bad relationship have legal options – but consider other remedies before getting the lawyers involved.

The problem you've encountered with your partner is one shared by many small-business owners, though not necessarily one that most people anticipate when starting a new company. The good news is that there are a number of options available to you – both legal and otherwise. The bad news is that unwinding your business partnership – should it come to that – can be a messy affair, akin to a “business divorce,” says Kimberly Ashbach of Ashbach Law, an employment law firm in Ambler, Pa.

Get it right at the beginning

“A properly written partnership agreement would set up the parameters for managing the business when thing are not working out,” Ashbach points out. “In the absence of an agreement, and a refusal by one partner to agree to a buy-out, the disappointed partner would have to withdraw from and dissolve the partnership."

In other words, if your partner won't agree to be bought out, you may need to allow yourself to be bought out – or even prepare to walk away from the business. When it comes to dissolving the business relationship, the courts can help, Ashbach says, especially if you can prove that your partner is making it impossible to carry on the business partnership.

“A partner can make an application to the court to dissolve the partnership, and the court would issue a decree of resolution in a variety of situations,” Ashbach says. Should the courts dissolve your business partnership, you and your partner would need to repay any outstanding debts and liabilities (for example, business loans, rent and leases on any equipment). What's left over would be divided up between you and your partner to repay your contributions to the business. Any remaining profits would be split as well.

Ironing out those practical details amid the hurt feelings and disappointments of a failed business is a tricky affair that's more akin to a divorce than a business negotiation – and it should definitely be done with the assistance of a lawyer. The separation of two business partners “needs to be handled in a way that the 'wronged' partner does not hold out for retaliatory or spiteful motives,” says Ashbach.

Before you get attorneys involved, however, consider setting up a meeting with your partner to try to work out an amicable resolution to the problem. Getting a neutral third party to mediate can help keep the discussion focused on the business problem at hand, rather than the emotional issues involved.

While organizations like SCORE and the U.S. Small Business Association provide counseling services to small business owners like yourself, this kind of dispute resolution doesn't fall under their purview, according to a SCORE spokeswoman. Instead, you're better off contacting your local bar association for referrals. Often, they will point you to area law firms or retired judges that offer mediation services for small commercial disputes, Ashbach says.

Online resources like mediate.com and JAMS also offer links to dispute mediation resources. Consider looking outside the legal profession: In many cases, mediators with a background in psychology can help.

This column provides general information only and is not intended to replace the services or legal advice of an attorney. Always consult a lawyer regarding any specific legal concerns, as laws vary from state to state.

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