n Professional Accountant - What's in a name? Business names and the Consumer Protection Act : CPA

Abstract

Currently, a business is entitled to trade under a trading name without registering it. For example, ABC (Pty) Ltd. can trade under the name 'Light Lime Media'. This is sometimes depicted as 'ABC (Pty) Ltd. trading as Light Lime Media'.

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However, ABC (Pty) Ltd. will not have statutory protection for the name 'Light Lime Media'. If another business starts trading under the same name, ABC (Pty) Ltd. will need to prove that it has built up a sufficient reputation in 'Light Lime Media' in order to proceed against them under the common law.

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That is why many entities register their trading names as trade marks in terms of the Trade Marks Act, 1993. A registered trade mark will make it easier for an entity to proceed against another business for unauthorised use of the trade mark.