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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3670
Experience:  Solicitors 2 years plus PQE
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I register a new company but never start any kind of trade

Resolved Question:

I register a new company but never start any kind of trade and services at the moment. Before couple of days i received a letter from a well known company who demand me to change the company name because my company name is ***** ***** the other company trademark. And also required me some undertaking and legal cost. I change the company name but still i never start any kind of goods and services how can they demand the money and undertaking. What you suggest me. I intend to start business goods  and services which is totally different from other company services and goods. Just a company name similarities and i also change my company name. But i never reply the letter which i received from other company solicitor.

Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Alex J. : Hi. Thank you for your question and welcome. My name is ***** ***** I will assist you.
Alex J. : does the company that is making the complaint have a registered trade mark?
Alex J. : if you have not started trading the you cannot be guilty of passing off.
Alex J. : at best they can allege that you are squatting on the name, but this seems unlikely if you are trading with a different class of goods and services and their is no likelihood of confusion in the eyes of the public.
Alex J. : Have they insisted that you pay any costs incurred up to this point?
Alex J. : i would agree to change the name of the company if they have a registered Trade mark and you want to ac
Alex J. : ***avoid court action
Alex J. : but I think as this is not deliberate or wilful then you should not be bullied into giving a cost undertaking.
Alex J. : Whether they bring a claim or not is their prerogative, however if they do bring a claim they will have to prove a loss.
Alex J. : if you have not actually traded then providing a loss or damage to their goodwill, will be difficult therefore
Alex J. : if you change your name, it will take the wind out of their sails so to speak - they are unlikely to have suffered any damage and they will have no need to injunct you, and they won't be able to sue you for a cost undertaking.
Alex J. : i doubt very much they have incurred substantial cost sending you a letter.
Alex J. : can you provide me any further details?
Alex J. : ps I apologies for any typos, I am typing this in real time. Kind regards AJ
Customer:

Yes the other company name is ***** ***** trademark. They give me 14 Day for change the company name and required some undertaking which consist never use trademark in future and cease and descent every thing.and required me to contribute a reasonable legal cost which they tell me the cost after receiving my undertaking. I dont want to give any kind of undertaking because i never start any kind of trade. If i give the undertaking then they required me the legal cost. I ask to you can i ignore the letter or replay the letter.

Alex J. :

I would not give any kind of undertaking. I would change the name and leave it at that.

Alex J. :

There was clearly no need for them to incur any legal costs if you were not actually trading yet.

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