Two Businesses, One Name
Nearly anyone who starts a business will spend some time considering what to call it or what name to trade under. A name is an integral part of a business's identity and the main way that customers find you among your competitors.
But despite the ubiquitous nature of the task, there still remains considerable confusion about the rights and obligations that are bestowed by the various registration requirements and pathways.
In this week’s You Legal TV we look at the Business Names Registration Act - when it applies, what it requires and the benefits provided under it.
See below for the complete transcript of this episode -
This week on You Legal Tv, we are going to consider how two businesses can use the same name and how you can go about protecting your business name.
Until 2012, there was no register of business names in Australia. If a company or sole trader decided to trade under a particular business name, then they simply did so.
In 2011, we saw the introduction of the Business Names Registration Act, requiring all persons and entities who were engaged in business activities to register their business name with ASIC.
In July of this year, the Business Names Registration Act was updated by a determination preventing the registration of a business name that is the same or substantially the same as another registered name.
Considerations include whether the name sounds the same, notwithstanding different characters are used, and whether or not words in the name belong to a particular group identifying the industry. For example, Sally’s Fitness Centre will be taken to be the same business name as Sally’s Gym.
This registration process, therefore, affords a small amount of protection for your business name, and others will be prevented from registering the same name.
There are, however, several notable exceptions to the rule on registering business names, such as where a company is trading as its company name and where sole traders are trading as themselves. These exceptions can result in some overlap of business names.
It is often misunderstood that simply registering a business name grants you ownership and the right to use that name exclusively. This is, unfortunately, not the case! You may still need to take steps to protect your brand.
When you are starting a business, you want to make sure that you are unique and that you stand out in your industry.
Join us on You Legal TV next week when we consider when you should invite your lawyer to be part of this creative process.
THE LEGAL LESSONS PODCASTS
We love bringing you the latest legal news and important issues via our You Legal TV channel, so we are very excited to announce that as of February 29, we will be expanding our information services to include a new podcast series, Hacking Health: more than just a Podcast. Consequently, You Legal TV will now be broadcast fortnightly.
Taking inspiration from the book “How to Avoid a Fall from Grace: Legal Lessons for Directors”, the series will examine the corporate governance landscape in Australia and discuss issues critical to directors.
Hacking Health: more than just a Podcast is THE podcast for leaders of growing companies. Providing insights, advice and information it will empower you to make bold decisions in your business.
Please subscribe to the series on iTunes, as a new episode will be available every week.
What Should I Do Next?
Contact us if you would like further legal advice on Two Businesses, One Name. Our lawyers at You Legal will be happy to assist you in whatever way we can.
* This blog is for general guidance only. Legal advice should be sought before taking action in relation to any specific issues.