Final answer:
It is false that you need to be currently engaged in business to file a trademark registration application. Individuals or companies can file an intent-to-use application to reserve a trademark before it is used in commerce.
Step-by-step explanation:
You are not required to be currently engaged in business to file a trademark registration application. The statement is false. An individual or a company can file for a trademark with the intent to use the mark in commerce in the future. This is known as an "intent-to-use" application and is a common practice in the United States under the Lanham Act; it allows for the reservation of a trademark before the commencement of its actual use in commerce.
A trademark is a distinctive sign such as a word, name, symbol, or device used to identify and distinguish products or services of a particular source from those of others. It has legal recognition and protection once it is registered. For example, while many companies can produce an orange-flavored drink, only Fanta holds the trademark for their specific brand of orange drink, which signifies its origin and assures its quality to consumers.