Trade Name Law

The trade name law is regulated in the Trade Name Act. It is an intellectual property right that protects the name under which a company is run.

A trade name is automatically protected if it is used in business and if it is known to third parties as such. Enrollment in the trade register of the Chamber of Commerce is therefore not required for protection (although it is a requirement under the Trade Register Act). Such registration can also be an indication of (the date of origin of) the trade name law. In addition, the use of a trade name can be demonstrated with, for example, business cards, folders, advertising material, e-mail signatures, websites, stationery and other commercial expressions.

In trade name law, Article 5 of the Trade Name Act is of particular importance. This article provides that the use of a younger trade name may be prohibited by an older trade name if that younger trade name is likely to confuse the relevant public. Such confusion can occur if the trade names are similar and the nature of the companies is (almost) the same. Think of the type of company, the place of business, and whether or not there is online trading. An older trade name right can then take precedence over the younger trade name, and one can then prohibit the use of the younger trade name. Hence, the date of the creation of trade name law can be of great importance in disputes regarding trade names.

It is therefore not wise to copy another person’s trade name. Not even in domain names, for example. Under certain circumstances, there may then be an infringement of the trade name law of the older company. This party may, under its legal rights, demand that the use of the younger trade name is stopped or that the name be changed.