MacRoberts Technology Media & Communications e-update 05/01/09

"OPPORTUNITY NO LONGER KNOCKS!"
COMPANIES ACT 2006 INTRODUCES NEW COMPANY NAME ADJUDICATOR

In an attempt to prevent opportunistic company name registrations (akin to the well known situation of cyber squatting in respect of domain names), Part three of the Companies Act has introduced a set of new rules to provide aggrieved parties with the wherewithal to fight back (albeit for a small(ish) fee!).

The new Company Names Tribunal has been set up to specifically deal with situations where someone registers a company name or a very similar name to that of a well known company simply in an attempt to gain financially from it i.e. to demand a payment in exchange for the registration. For example where there is knowledge that two well known companies are about to merge, an opportunistic registrant registers what he or she thinks is the likely name of the about to be formed merged company and then attempts to sell the registered name to the company – just like cyber squatting but without the virtual insanity!

The 1985 Companies Act only provided protection to those already registered - they could object to the registration of a company name the same or very similar to their own - however a company seeking to become registered could not do the same and hence why opportunistic company name registration could occur with relative ease. Only through expensive court action (or indeed payment to the registrant) would the position be resolved for those seeking to register their new company name.

In terms of how the process will work – the aggrieved party will be required to complete a complaints form and submit it to Company Names Adjudicators who will be based at the UK Intellectual Property Office. The adjudicators, who will be governed by the Company Names Adjudicator Rules 2008, will make decisions with regard to company names disputes.

Crucial to the success of any application is that offending registrations must have had an opportunistic element' and whilst there are defences available these will not be applicable if the registering of the name was 'opportunistic', that is to say, if the party registered the name with the intention of selling it on to the applicant or if it was the sole intention that the applicant should be prevented from using the name.

The complaint procedure does come at a price, albeit a lower price in comparison to drawn out court proceedings. To register a complaint with the adjudicator there is a fee of £400. In the event that the applicant is successful the adjudicator has the power to order the respondent to change the company name.

For further information please contact David Flint or Valerie Surgenor on 0141 332 9988

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