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Similar Company name as my client's

Similar Company name as my client's

Didn't find your answer?

I would be grateful for advice from fellow members.

My client's company name is  say for example  CLIENT Ltd.

Another company has incorporated last week as CLIENT (BB) Ltd.

Does my client have any recourse to stop them using such a similar name?

Thanks

Replies (11)

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By Paul Crowley
29th Sep 2020 13:29

Passing off action
Think in terms of £10,000 legal costs before starting and the risk of another £10,000 legal costs on losing.
Over to the legal people now.

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Replying to Paul Crowley:
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By aadil
29th Sep 2020 14:19

Just to clarify, are you saying my client would potentially incur £20K legal costs to stop a new company using very similar name as my client's established company?
Apologies in advance if I have misunderstood.

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Replying to aadil:
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By Paul Crowley
29th Sep 2020 14:26

Your client would need to convince the court that new company is stealing the trade of old company.
Very difficult to achieve.
And if both parties incur costs then loser pays both parties' legal fees

Is new company in same trade and same town as your client?

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Replying to Paul Crowley:
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By aadil
29th Sep 2020 14:39

Yes, same trade and same area, about 3 to 4 miles away

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By Duggimon
29th Sep 2020 14:40

The first name that popped in to my head to check was "Lucky Garden". There are seven companies registered on Companies House containing "Lucky Garden" in their name, differing by just one other word.

I am quite sure there are hundreds of other examples of common names resulting in many similarly named companies. There's no minimum level of difference required from one company to another and there's nothing wrong with registering a company whose name is similar but not the same as another.

If the new company has been deliberately named similarly to an existing company in order to benefit from that company's reputation, to the detriment of the original company, you may have a case against them, but not an easy one to fight or prove and not something accountants are well placed to advise on.

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By frankfx
29th Sep 2020 15:04

Trading Standards may be worth approaching.

In What sector is your client operating?

Client (BB ) Limited, rather its Directors, could be doing this on an industrial scale.

Any web site copy cat activity?

There may be a pattern of passing -off behaviour.

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By Thomas654654
29th Sep 2020 18:47

I'm not sure why the limited company name matters. If your client has trademarked the name then they might have a case, assuming they are trading under that name too. It would be a legal matter anyway, not an accountant's concern

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By carnmores
29th Sep 2020 19:29

what does CH say?

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By Calculatorboy
02nd Oct 2020 01:42

Obviously companies house dont think its that similar

I think they'll need deep pockets

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By Calculatorboy
02nd Oct 2020 01:42

Obviously companies house dont think its that similar

I think they'll need deep pockets

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By aadil
05th Oct 2020 17:52

Thanks all for your comments. I have asked the client to contact Companies House as a first step.

As advised above we are not getting involved with this and have told the client to obtain legal advice if they wish to pursue this.

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