03: 'Passing off'

A business name is an intellectual property asset, and a company’s reputation over time will become synonymous with it. You need to protect yourself from anyone who may wish to trade on your company name, and you also need to ensure that you cannot be accused of ‘passing off’ as another business.

If you adopt a name which misleads the public into believing your business is another one you may face legal action from the person whose business you have affected for ‘passing off’. Registering your name with Companies House is no guarantee that you will be safe from such action.

Conversely, if you have a distinctive name, you may be able to take legal action against anyone using the same or a similar name if it could be proven to be affecting your business.

Normally, the aim of legal action is to obtain an injunction to force the company to change the name; however, financial damages might also be awarded.

Registering your name as a trade mark gives additional legal protection. In particular, enforcing a trade mark is easier, because you can defend infringement without having to show that you have been damaged.

To register a trade mark in the UK, you have to apply to the UK Intellectual Property Office. When applying, you need to conduct a full search to make sure no-one has registered or applied for the same trade mark and to list all the goods and services that you want it to cover. A trade mark is registered for 10 years, after which it can be renewed for another 10 years. Provided the trade mark is renewed, it may be held indefinitely.