When we first wanted to call ourselves The Junkyard Dogs - oooh, 10 years ago now - we found that there was (i) a well-established covers band by that name oop North, and (ii) a sort-of scrumpy & western outfit in the West Country called Hobo Jones & The Junkyard Dogs.
On balance, we decided to leave the name alone and went out for a while as The Brentford Nylons ("we do loose covers").
Then we discovered that the Northern band was folding and calling it a day. We waited a few months, and then re-named ourselves The Junkyard Dogs. Inevitably, the following year they re-formed! Too late ... the deed was done.
In the last eight years we've never once been confused with Hobo Jones, and we've only ever had a single booking enquiry intended for the Northern band.
The real issue is whether or not your marketing could possibly overlap with theirs. We use exclusively Facebook and Lemonrock. The latter doesn't seem to exist North of Milton Keynes so no problem there, and though it it is widely used in Hobo Jones country we're saved by the filing issue; we're a J and they're an H.
That just leaves FB, and so far that's never been an issue.