Before a name is chosen, several factors concerning the inherent distinctiveness of the name should be considered carefully. There are generally four categories of distinctiveness when considering the adoption of a trademark or service mark: arbitrary or fanciful marks; suggestive marks; descriptive marks, geographic designations or personal names; and generic names.

A fanciful trademark is created for the sole purpose of functioning as a trademark, such as XEROX, ABBA and CHUMBAWAMBA. Fanciful trademarks are the strongest since they are invented or incongruous word combinations and there are few competitors who could claim that they accidentally adopted the same trademark. Unfortunately, fanciful marks are usually the most challenging to create because they require a measure of imagination that many would rather avoid.

Slightly less strong than fanciful marks are arbitrary marks, which have some meaning to the public but, when used in connection with the relevant products, do not immediately suggest or describe any quality of the product. Examples include IRON MAIDEN, originally a medieval torture device, ISLAND, KISS, POLICE and STYX, words with significance in certain contexts but no immediate significance with respect to music. An arbitrary mark may be a strong trademark unless a number of other parties have adopted the same or similar mark in other fields.

Suggestive marks, which are weaker but still generally protectable, hint at some quality or character of the products without actually describing the product, such as THE HIT FACTORY, MOODY BLUES or NIRVANA. Suggestive marks border on the dangerous trademark territory called descriptive marks.

Descriptive trademarks are those which describe some aspect, characteristic or quality of the products on which they are used. If a trademark is considered descriptive, it is per se unregistrable and unprotectable in a court of law. Examples of trademarks that were judged descriptive and non-enforceable include RAISIN-BRAN and YELLOW PAGES. Descriptive marks may also consist of laudatory terms, such as BEST, SUPERIOR, etc. Mere misspellings of descriptive trademarks will not suffice to render them non-descriptive or distinctive. In addition, translations of a descriptive word into another language will not rescue a word from being considered descriptive in the United States, or certain other countries. Adoption of these types of trademarks should be avoided since they generally may not be enforced against third parties, except with great difficulty.

Descriptive marks may become entitled to trademark protection if the trademark owner is able to demonstrate that the mark has, through use in the marketplace, become recognized by consumers as indicating a single source of the relevant goods or services and has, therefore, "acquired distinctiveness" and "secondary meaning" through such use. Secondary meaning requires that consumers must use the word "in a new and secondary sense of indicating only one source and quality of goods or services". In addition, a combination of a descriptive element with other distinctive elements may create a composite that is worthy of trademark protection, although the descriptive elements will not be individually protected.

The final category of marks, namely generic terms, cannot constitute trademarks. The name of a product or service itself can never function as a trademark. Thus, a band that performs hip-hop music could not obtain trademark protection in the name "The Hip Hop Group.”