Problem with Business Name

oompahloompah

Hi
How simple is it to change the name of a busines? We are having problems with confusion with another (unrelated) firm; suppliers paying them instead of us etc. We are not a limited company but they are, and they have the name trademarked too (although we were in business before the name was trademarked).
Thanks

olly300

Depends how much money the other business has to spend on lawyers and court fees.

You have heard of MacDonalds and Starbucks stopping businesses trading with similar names in the UK and around the world.

To be honest if your names are easily mixed up and customers have been paying you incorrectly I would change the name asap.

At some point you are going to be extremely unlucky with a customer paying the wrong firm for example if the customer pays the other company, then goes bust and the money is returned to them but they owe other creditors i.e. HMRC money who they have to pay before you.

Also there is the other issue of business reputation. If the other company with the similar name end up with a bad reputation for anything and this is easily found on the internet, in the local media or even in the national media due to the very similar names you will be automatically assumed to be linked to them particularly if you are in the same town.This will end up costing you business.

paulwf

To be accurate they didn't copyright their name they registered a trademark for it (I'm not trying to be pedantic but without the right terms you won't be able to uncover much with a web search).

As ever Business Link comes to the rescue with the basics:

http://www.businesslink.gov.uk/bdotg/action/layer?=en&r.s=sc&r.l1=1073858796&r.lc=en&r.l3=1073939611&r.l2=1073859014&topicId=1073939611&r.i=1073791338&r.t=RESOURCES

If you have a commercial solicitor they might have a trademark specialist. You could also join the FSB and use their legal helpline.

Could you reach some sort of compromise by having a separate trading name?

pitkin2020

Just out of interest how did a customer manage to pay the wrong company? Surely you send an invoice with your name, BACS details and address on a customer will pay whats on the invoice, if they use both companies there maybe confusion there.
For example if I buy something from carpet right how would i pay carpet express unless I had an invoice from both companies?

As for the trademark you need to seek legal advice on it, you may have a case if you can prove you were using it for a good period of time before they were (in a business sense). Although you may win and keep the rights to use it, I would look how much its going to cost you in changing and what (if any) effect it will have on your business. If you think it won't effect your business too much change it as it will be the cheaper route to fighting it. If you come to a verbal agree with the other business get it in writing next time to cover yourselfs.

System

I don't think it's trademarks. I'm more inclined to think that the OP means that they registered their company after the creation of the OPs as it is a Ltd Co.

oompahloompah

Thanks everyone.
We are totally different businesses so there really shouldn't be any confusion but the customers (both national organisations) apparently deal with both of us - our invoices are clearly marked with our details but on these occasions (twice with one organisation, once with another) the invoices were sent to a central finance department rather than the department we had been dealing with, they must have just scrolled down a list in their systems (with both all suppliers must be pre-registered), saw the first part of the name and didn't check the invoices for the other details and so made the payments incorrectly.
The restaurant have the name trademarked - sorry I didn't mean copyrighted, I know there is a difference, sorry for the confusion.
I'll check out the businesslink.
Thanks again

Savvy_Sue

oompahloompah wrote: »

the customers (one a council, one a national organisation) apparently deal with both of us - our invoices are clearly marked with our details but on these occasions (twice with one organisation, once with another) the invoices were sent to a central finance department rather than the department we had been dealing with, they must have just scrolled down a list in their systems (with both all suppliers must be pre-registered), saw the ABC 123 and didn't check the invoices for the other details and so made the payments incorrectly.

TBH, I think you will find this happening more and more: I've had two letters this week, one from local council and one from local University saying that invoices MUST be sent to central address rather than dept.

If money going to the wrong company is not a clinching argument for your business partners, I'm not sure what would be.

jellytastic

as you are not or never have been 'passing off' as this other company there is no problem, if I were you and I was seriously worried Id pay money to see a good Trademark Attorney and get them to write to the company stating that you are doing nothing wrong. However, now I know more on the law in these matters, I would do nothing and let them start proceedings if they feel it necessary - they will get nowhere, only huge legal fees.

A sole trader is allowed to use the same name as a limited company but another limited company cannot set up with the same name.
It is the issue of 'passing off' where problems arise and as you are in a totally unrelated line of work that is never an issue. I know from personal experience and huge expense how difficult this issue is, please pm me if you need any further info - but I seriously wouldnt worry x

oompahloompah

Thanks everyone, Jelly that is very reassuring, thanks for that.