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Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 23072
Experience:  38 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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Im planning to buy a company, they guy is selling its

Customer Question

hi im planning to buy a company, they guy is selling its trading name as 5starcleaners but when i checked on companies office the name 5star cleaners is owned by someone else. He stated that hes selling the name as a trading name. Im unsure on if its legal to buy it or not.
Submitted: 1 year ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 1 year ago.
You won't have any protection if someone has a company name registered as they could try to stop you using this name. Having the company name is ***** ***** protection, although a trade mark is also useful. But without knowing the background I would think the name doesn't have great value without also having the company name
Customer: replied 1 year ago.
the name 5 star cleaners is already a running business. Is it legal to advertise using the name 5starcleaners if someone else is already holding that name as their company name?
Expert:  Chris The Lawyer replied 1 year ago.
It is legal, but the company could try to stop it, under a legal principle called passing off. They could also claim this business is unfairly using their name. If they are in the same line of business, and in the same location, that could be a real risk. But if they are somewhere else and do different things, it is lower risk