diff --git a/pkgs/racket-pkgs/racket-doc/scribblings/raco/setup.scrbl b/pkgs/racket-pkgs/racket-doc/scribblings/raco/setup.scrbl
index 61748e6213..877d48ccee 100644
--- a/pkgs/racket-pkgs/racket-doc/scribblings/raco/setup.scrbl
+++ b/pkgs/racket-pkgs/racket-doc/scribblings/raco/setup.scrbl
@@ -11,6 +11,7 @@
                     setup/dirs
                     setup/getinfo
                     setup/main-collects
+                    setup/collection-name
                     setup/path-to-relative
                     setup/xref scribble/xref
                     ;; info -- no bindings from this are used
@@ -1406,6 +1407,32 @@ compatibility.}
   function).
 }
 
+@; ------------------------------------------------------------------------
+
+@section[#:tag "collection-names"]{API for Collection Names}
+
+@defmodule[setup/collection-name]
+
+@defproc[(collection-name? [v any/c]) boolean?]{
+
+Returns @racket[#t] if @racket[v] is a string that is syntactically
+valid as a collection name, which means that it is one or more
+@litchar{/}-separated strings for which
+@racket[collection-name-element?] returns true.}
+
+
+@defproc[(collection-name-element? [v any/c]) boolean?]{
+
+Returns @racket[#t] if @racket[v] is a string that is syntactically
+valid as a top-level collection name or as a part of a collection
+name, which means that it is non-empty and contains only ASCII
+letters, ASCII digits, @litchar{-}, @litchar{+}, @litchar{_}, and
+@litchar{%}, where a @litchar{%} is allowed only when followed by two
+lowercase hexadecimal digits, and the digits must form a number that
+is not the ASCII value of a letter, digit, @litchar{-}, @litchar{+},
+or @litchar{_}.}
+
+
 @; ------------------------------------------------------------------------
 
 @section[#:tag "xref"]{API for Cross-References for Installed Manuals}
diff --git a/pkgs/racket-pkgs/racket-test/tests/racket/collection-name.rkt b/pkgs/racket-pkgs/racket-test/tests/racket/collection-name.rkt
new file mode 100644
index 0000000000..f9d9c5a412
--- /dev/null
+++ b/pkgs/racket-pkgs/racket-test/tests/racket/collection-name.rkt
@@ -0,0 +1,17 @@
+#lang racket/base
+(require rackunit
+         setup/collection-name)
+
+(check-equal? #t (collection-name-element? "racket"))
+(check-equal? #t (collection-name-element? "racket%21"))
+(check-equal? #f (collection-name-element? "racket.rkt"))
+(check-equal? #f (collection-name-element? "racket!"))
+(check-equal? #f (collection-name-element? "rac/ket"))
+
+(check-equal? #t (collection-name? "racket"))
+(check-equal? #t (collection-name? "rac/ket"))
+(check-equal? #t (collection-name? "racket/%21"))
+(check-equal? #f (collection-name? "racket.rkt"))
+(check-equal? #f (collection-name? "racket!"))
+(check-equal? #f (collection-name? "racket/"))
+(check-equal? #f (collection-name? "/racket"))
diff --git a/racket/collects/pkg/lib.rkt b/racket/collects/pkg/lib.rkt
index ae0521245e..822dba8273 100644
--- a/racket/collects/pkg/lib.rkt
+++ b/racket/collects/pkg/lib.rkt
@@ -10,6 +10,7 @@
          setup/pack
          setup/unpack
          setup/dirs
+         setup/collection-name
          racket/port
          racket/list
          racket/function
@@ -1604,16 +1605,17 @@
   (if (not i)
       pkg-name
       (let ([s (i 'collection (lambda () 'use-pkg-name))])
-        (unless (or (string? s)
+        (unless (or (collection-name-element? s)
                     (eq? s 'multi)
                     (eq? s 'use-pkg-name))
-          (log-error (format (~a "bad `collection' definition in \"info.rkt\n"
+          (log-error (format (~a "bad `collection' definition in \"info.rkt\";\n"
+                                 " definition will be ignored\n"
                                  "  path: ~a\n"
                                  "  found: ~e\n"
-                                 "  expected: (or/c string? 'multi 'use-pkg-name)")
+                                 "  expected: (or/c collection-name-element? 'multi 'use-pkg-name)")
                              (build-path dir "info.rkt")
                              s)))
-        (or (and (string? s)
+        (or (and (collection-name-element? s)
                  s)
             (and (eq? s 'use-pkg-name)
                  pkg-name)))))
diff --git a/racket/collects/racket/HISTORY.txt b/racket/collects/racket/HISTORY.txt
index 952edc2c67..316bd17e33 100644
--- a/racket/collects/racket/HISTORY.txt
+++ b/racket/collects/racket/HISTORY.txt
@@ -1,6 +1,7 @@
 Version 5.90.0.9
 Allow hash table chaperones and impersonators to Support efficient
  hash-clear and hash-clear!
+setup/collection-name: added
 
 Version 5.90.0.6
 Added path<?, symbol<?
diff --git a/racket/collects/setup/collection-name.rkt b/racket/collects/setup/collection-name.rkt
new file mode 100644
index 0000000000..611b86ecd2
--- /dev/null
+++ b/racket/collects/setup/collection-name.rkt
@@ -0,0 +1,14 @@
+#lang racket/base
+
+(provide collection-name?
+         collection-name-element?)
+
+(define (collection-name? name)
+  (and (string? name)
+       (andmap collection-name-element? (regexp-split #rx"/" name))))
+
+(define (collection-name-element? name)
+  (and (string? name)
+       (regexp-match #rx"^[a-zA-z0-9+_%-]+$" name)
+       ;; Using `module-path?' checks that "%" is used apprrpriately:
+       (module-path? name)))
diff --git a/racket/collects/setup/link.rkt b/racket/collects/setup/link.rkt
index 4f2e128a40..1ea3294348 100644
--- a/racket/collects/setup/link.rkt
+++ b/racket/collects/setup/link.rkt
@@ -1,7 +1,8 @@
 #lang racket/base
 (require racket/file
          racket/path
-         setup/dirs)
+         setup/dirs
+         setup/collection-name)
 
 (provide links)
 
@@ -20,8 +21,7 @@
                #:with-path? [with-path? #f]
                . dirs)
   (define (check-name name)
-    (unless (and (regexp-match #rx"^[a-zA-z0-9+_%-]+$" name)
-                 (module-path? name))
+    (unless (collection-name-element? name)
       (error 'links "name is not valid as a top-level collection name: ~e"
              name)))