Question: Can I use a name that is similar to another company’s and they are in the same business but they are in the UK?

We both provide web services for companies and we both are small companies difference is they are based in UK while we are in USA. To give you an example our names are like this:

designlite (UK company uses this)

designlyte (this is the name i want to use)

So in the case described above can i use that name or highly likely we might have issues? Could there be a trademark issue?

Answer: Though located in the UK, this company may have trademark rights in the US. If so, and based on the example provided, there may be an issue of infringement.

Whether two trademarks can co-exist depends on whether there is a likelihood of confusion. The answer to that question depends on examining a number of factors, which includes the similarities of how the marks are spelled.