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2 companies - same name

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Original Message Added : 8 Jun 2010
 
Out of our area to answer this one, but our client - established for many years and trading under the same company name has been contacted by another company and asked to stop using the name. What is the legal situation here?

Useful? (2)
MJ Reeve
Location :Leeds
Joined : 27 May 2010
Posts :13  ( 6)
Reply : 9 Jun 2010
 
Hi

Is your clients company a limited company?

Is the other company a limited company?

Are both companies in the same line of business?

If the other company is a limited company they will have the upper hand.

If neither your client or the other company are limited there is not an issue.

I hope this is clear and helps if so a thumbs up would be welcome

Declan Woods from
h f commercial finance
Location :Manchester
Joined : 03 June 2010
Posts :20  ( 5)
Reply : 9 Jun 2010
 
Companies House will not register two identical names for different companies but will allow ABC (GB) Ltd and ABC Ltd so overlaps can occur. Companies House now have powers to remove or force businesses to change their name if the original application is in bad faith, so you may have an action to remove them or force them to change the name. You will also have to consider whether either business is infringing any other rights of the other (Copyright,goodwill etc.) . If your client company has been trading for many years then it is likely that they have developed a reputation and standing in their business sector - this amounts to goodwill and allows your client company to counter the other's companies claim if they are a competing businesses (this action is known as passing - off). If the other company has registered a trademark for the business name then defending their action will involve the IPO tribunal. Depending on who traded first and when the registration was made there are various defences available, key of which may be attacking the validity of the trade mark (Invalidation Proceedings). I hope this helps, please note that disputes can arise over business names regardless of whether the businesses involved are partnerships, limited companies or sole traders. 

The above advice is given generally and I would need to be able to have the full details to be able to advise properly.

Chris Boakes

www.acumenbusinesslaw.co.uk

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