One of the common myths of business practice is that registration of a company name protects you from others who choose the same or similar name for their business.
It does not. It does, however, give you exclusive rights to operate your New Zealand company under that name.
This is provided there is no-one else with better rights than you (for example, someone who has a registered trademark). It won't stop anyone else incorporating a company under a similar name, or even, in many cases, using the same name for their business.
How can business owners be assured of exclusive rights to the name of their choice? There are two aspects to achieving the best protection.
First, ensure you won't be stepping on anyone else's toes before you start investing in and growing your brand.
This means informed searching, and not necessarily just in New Zealand.
The last thing you want is to expand your market internationally and discover you can't continue to use your developed brand.
Do not underestimate the importance of domain names as well as trademarks in your research.
Second, once you have identified an available name you need to protect it.
Ideally, you should register a trademark in the countries where you intend operating.
You will need to specify the goods and services for which your trademark is to be used.
The way in which your application is prepared will determine the scope of your protection, so it is important to get it right.
Make sure you secure your domain name at the same time, and don't just rely on it and your company name to protect your brand.
Otherwise, you will risk forfeiting your domain name to your shrewd competitor who knows the power of a registered trademark.
Sally Peart is a partner at Mitchell Mackersy Lawyers.
