Intellectual Property Insights from Fishman Stewart
Newsletter – Volume 26, Issue 22
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What’s in a Name? Why Trademark Clearance Matters
Before a brand makes headlines for the right reasons, it helps to make sure someone else doesn’t already own the name. A recent dispute involving Tesla, SpaceX, and the name “Terafab” offers a timely reminder that a great brand name can become an expensive problem if someone else got there first.
In September 2026, Tesla, SpaceX, and SpaceXAI filed a federal lawsuit asking the court to declare that their use of TERAFAB for a planned semiconductor manufacturing operation does not infringe trademark rights asserted by nanotechnology company TERA-print. TERA-print owns a federal registration for TERA-FAB and reportedly sent a cease-and-desist letter after Tesla filed applications for TERAFAB and TESLA TERAFAB earlier this year.
The dispute highlights a common misconception: filing a trademark application, or even entity-name availability with a state agency, does not necessarily mean a brand is clear to use. Trademark disputes can arise even when the parties do not offer identical products. The analysis generally focuses on whether consumers are likely to be confused based on factors including the similarity of the marks, the parties’ goods or services, and the state of the relevant marketplace.
That makes timing important. By the time a company announces a new brand, it may already have invested in marketing, websites, packaging, product development, and customer recognition. Discovering a trademark problem after launch can mean litigation, rebranding, or both.
The takeaway is simple: search before you launch. A trademark clearance review can identify potentially conflicting trademark registrations, pending applications, and earlier marketplace uses before significant resources are committed to a brand. In an era where a new name can go viral overnight, a little trademark diligence upfront can save a lot of trouble later.
Kameron is a partner and registered patent attorney at Fishman Stewart PLLC, specializing in Intellectual Property with over a decade of experience counseling clients on patent, trademark, and related contractual matters. Kameron’s practice encompasses all aspects of preparing, procuring, and enforcing worldwide IP rights. Check out his full bio here.
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