Scope of Company Name Protection

The most secure way to protect a company name is by registration. The protection granted to a registered company name covers the entire country. An exception can be made, if it can be demonstrated that the holder of a registered company name does not incur any damage as a result of the use of a confusable company name, for example if a certain company name is only used locally or within a limited region.

Protection granted to an established company name extends only to the region in which it has been established, that is, become well-known. Protection through establishment is also weakened by the fact that only already registered names and submitted applications for registration are taken into account, when decisions on new registrations are being taken. Consequently, an established business name may be registered at any time, resulting in another company acquiring the right to such name. Therefore, it is safer and simpler for companies to always register the company name, even if had already been established through use.

Registrations of company names remain in force for an indefinite period. To maintain the protection of the company name in force, however, there is an obligation of use: if the company name remains unused for a period of five years in the absence of an acceptable reason, the registration of the company name may be repealed. Also a court may, under certain circumstances, deny the use of a company name or repeal the registration, for example, if the company name has become misleading as a result of the holder shifting to another industry.