The sad case of trademark trouble and losing your business.
Mr and Mrs Chapman are bakers and open a new bakery shop. They register their company name – A & B Chapman Pty Ltd with ASIC. They register their trading name too .. ‘Chappies’
They pop off to their local graphic designer / agency and get their logo and branding done, their printed goods… business cards, brochures, signs, bags and packaging, delivery van signage etc
The Chapman’s make terrific pies and business soon starts to blossom… even their pies become known as ‘Chappies’
Six months later, they receive a letter from a lawyer in another state telling them to stop using the name ‘Chappies’ and giving them 48 hours to remove it from the marketplace…
Why…?
Because another business in another state has called their business ‘Chappies’ and trademarked their name a couple of years ago. A trademark covers the whole of Australia.
What happens? Can the Chapman’s do anything? They registered their name, surely that’s enough?
Well no, it isn’t…
Registering a name offers you no proprietary rights to use that name whereas a trademark gives the owner of the trade mark the legal right to use it exclusively and the legal right to stop others using it.
Graphic Designers and Creative Agencies perhaps need to know about this in order to advise their client or add a disclaimer to their quotes and proposals. i.e. It is the responsibility of the business owner to check on the legal right of use of the words given to us to use in the logo or branding.
We have assisted several business owners who have been served with infringement notices, even after years of trading. Most had no idea that they were imposing on someone else’s trade mark, and it has cost them dearly, usually necessitating a complete re-naming and re-branding of their company. Sadly, some have had claims on their profits too and have ended up in bankruptcy.
Business owners should trademark their business identity. Although it isn’t an easy process, it’s worth it.
Book a confidential, no-obligation consultation and appraisal.Find out a little more about us HERE
Find us on Facebook HERE
—————————————————————–
DisclaimerThis information is a general guide to further your knowledge about patenting and does not constitute legal advice.
