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Lecture notes Business Law and Practice (LW1704) Naming a Business

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Lecture notes on naming a business - fourth year MLAw student

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Business Names


Commercial Considerations in naming a business:
 Will the name reflect the individuals involved, the product/services or both?
 Will the name reflect existing goodwill in a name (non-tangible value that an existing
name has with customers)
 How will the name fit into the existing market
 How will the business protect the IP (intellectual property) in the name - trademarks,
domain name etc.

Avoiding Intellectual Property Infringement etc
 If a business chooses a name, logo etc that is similar to or the same as
another business, particularly if both businesses sell the same goods/services and
operate in the same geographical area this could infringe intellectual property 
registered trademark infringement or passing off.
 Businesses will want their own distinctive brand  it's hard to create goodwill if it's
difficult to distinguish businesses.
 Searches must be carried out to check what businesses already exist:
o Registered trademark search at IPO
o Google search
o Yellow pages
o Companies House name search

Protecting the name/brand
 You can protect your name and brand even if you aren't operating as a company
 Register a trademark (name and lor logo)
 Register a domain name
 Incorporate a company with that name to prevent others doing so  only if no other
company has that name
 Passing off  can be used to enforce unregistered trademark rights  prevents one
person from misrepresenting their goods/services as that of another  benefitting
from another's goods or services. Passing off is a tort.
o Requires goodwill, misrepresentation and damage.
o Claimant’s (C) business must have goodwill, D (defendant) must have
accidentally or purposely passed off their goods/services as Cs and C must
have suffered damage as a result of the misrepresentation
o Reclutt v Coleman Products Ltd v Borden.Inc (1990)
 involved a competitor selling lemon juice  passing off applies to
packaging as well

Trademarks
 A business may want to obtain further protection from others using its trademark(s)
by registering them.
 A registered trademark gives more protection than an unregistered trademark for
which only a passing off claim can be brought

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