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Committee approves administrative cancellation for trade names and trademarks to speed removal of fraudulent filings

January 17, 2025 | Corporations, Elections & Political Subdivisions, Senate, Committees, Legislative, Wyoming


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Committee approves administrative cancellation for trade names and trademarks to speed removal of fraudulent filings
The Corporations, Elections & Political Subdivisions Committee voted 5-0 to advance Senate File 53, a proposal that would allow the Wyoming Secretary of States Office to administratively cancel trade name and trademark registrations when filings appear false or fraudulent.

The billwould add an administrative cancellation process for trade names and trademarks that mirrors existing authority the secretary already uses for corporations and limited liability companies. Under the draft adopted by the committee, the office would send a written notice and give registrants 60 days to respond with sworn, satisfactory evidence; if the response is inadequate, the office could cancel the registration. The statute would preserve the right to judicial review and possible reinstatement by a court.

Wyoming Secretary of State Chuck Gray, presenting the measure, said the change arose from the offices interim work to combat business fraud and from specific cases where holders of trade names and trademarks faced lengthy, costly litigation to correct false filings. "This is where our interim committee request to combat business fraud in Wyoming," Gray said. He described a case in which a person expelled from an organization later filed a trade name claim, a dispute that could have required expensive court action without the administrative tool the bill would provide.

Joe Rubino, general counsel and policy director for the Secretary of States Office, told the committee the language mirrors dissolution and cancellation authorities already used for LLCs and corporations and includes procedural safeguards. "If the secretary determines that the grounds for cancellation under this paragraph exist, the secretary shall send written notice" and the registrant would have a 60-day cure period, Rubino said. He also described the offices practice of requiring sworn affidavits during the response period.

Colin Crossman, business director for the Secretary of States Office, explained technical and practical differences between trade names and trademarks for the committee. He described a trade name as the functional equivalent of a "doing business as" name in other states and said trademarks create a broader zone of protection for confusingly similar marks.

Committee members pressed on process and on language that would permit a district court to "summarily" order reinstatement in some appeals; sponsors said the phrase was intended to preserve judicial flexibility and could be deleted if the committee chose. The committee heard no public opposition and took no amendments to the bill text.

Motion and vote: Senator Steinmetz moved the committee to advance Senate File 53. The committee voted by roll call: a recorded "aye" from the chair and four senators present for a 5-0 committee vote to advance the bill. The committee set the bill up for committee carry assignments.

Why it matters: Committee supporters said the change would spare lawful holders of trade names and trademarks from the expense of routine litigation in clear cases of fraud while preserving due process through the notice-and-response period and judicial review. The bill's effective date in the draft is July 1, 2025, and the office said only minimal programming changes to its filing system (WyoSuite) would be required.

Next steps: The bill was advanced from committee and is expected to be carried to the floor by a committee member. Public testimony during the committee hearing was limited to the Secretary of State's Office, and the office said it would continue collaborating with stakeholders as the bill proceeds.

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