In the course of business operations, changing the company name for a joint stock company is not only a strategic move but also an important measure to protect intellectual property rights and avoid legal disputes. The case study examined by the People’s Court of Dak Lak Province below clearly illustrates the importance of the company name change procedure.
Case Study: Intellectual Property Dispute Due to Confusing Business Name
On February 8, 2023, the People’s Court of Dak Lak Province handled a dispute between DX Group Joint Stock Company and DX 47 Real Estate LLC. The main issue in the case was that DX 47 Real Estate LLC used a business name containing the term “DX,” causing confusion with the “DX” trademark owned by DX Group Joint Stock Company, a brand that was registered and protected.
DX Group Joint Stock Company filed a lawsuit requesting DX 47 Real Estate LLC to cease using a business name containing “DX” and to issue a public apology. After examining the evidence, the court concluded that DX 47 Real Estate LLC had violated intellectual property rights and ordered the company to change its name and publicly apologize.
Reasons for Changing Company Name
The company name change procedure can arise from various reasons, including:
Avoiding legal disputes:
Real-life example: A case where a small accessory manufacturing company named “Apple Box” was sued by Apple for trademark infringement. The small company was forced to change its name to avoid violating Apple’s intellectual property rights.
Change in business strategy:
Real-life example: A company initially engaged in clothing manufacturing under the name “Style Wear” later expanded into health supplements and decided to change its name to “Style Group” to reflect its new diversified business strategy.
Mergers or acquisitions:
Real-life example: After Walt Disney acquired 21st Century Fox, several Fox sub-brands were renamed to avoid confusion and reflect their integration into Disney’s system. For example, “20th Century Fox” was renamed “20th Century Studios.”
Rebranding:
Real-life example: British Petroleum (BP) rebranded as “Beyond Petroleum” as part of a campaign to refresh the brand and emphasize its commitment to more sustainable energy solutions.
Legal requirements:
Real-life example: A local company named “USA Motors” was required to change its name because it violated regulations regarding the use of a country’s name in a business name without official permission. The company was renamed “American Motors” to continue its operations.
Importance of the Company Name Change Procedure
The company name change procedure is not just an administrative formality; it is also crucial for protecting the brand and avoiding legal risks. Through the above case, we can see:
- Protection of intellectual property rights: Failure to promptly register and protect the company name can lead to legal disputes if other competitors use the business name.
- Avoiding confusion and unfair competition: Using a business name similar to or identical to a registered trademark can lead to unfair competition and confuse customers.
Company Name Change Procedure
If your company decides to change its name, here is the procedure and the necessary forms:
- Notification of change in business registration details: This document, signed by the legal representative, notifies the Business Registration Office of the company name change.
- Resolution and minutes of the General Meeting of Shareholders: For joint stock companies, the name change must be approved by the General Meeting of Shareholders and recorded in the resolution and meeting minutes.
Required Forms:
- Minutes of the General Meeting of Shareholders on the name change
- Resolution of the General Meeting of Shareholders on the name change
- Appendix II-1 Notification of change in business registration details
Conclusion
The company name change procedure is a decision that must be made carefully and followed by the correct process to avoid legal risks related to intellectual property rights. The case between DX Group Joint Stock Company and DX 47 Real Estate LLC is a clear example of the importance of protecting the company name and brand. Make sure that your company follows the necessary legal procedures when changing its name to protect your interests and reputation in the market.
For more details on company name change procedure, please see our comprehensive guide on company formation (HERE). If you need further advice, contact Unilaw for detailed and professional support (HERE).
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