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Dispute over a name
Competition
An estate agent was entitled to prohibit a former employee from using his name in the promotion of a new estate agency, for the name was protected as a trademark.
An estate agent was entitled to prohibit a former employee from using his name in the promotion of a new estate agency, for the name was protected as a trademark.
It is tempting for an employee to use his former employer’s name to promote a new business. Particularly, if the former employer is an estate agent known from TV. But this may be contrary to the Danish Marketing Practices Act and the Danish Trademarks Act, as this case shows.
After 15 years of service, a former employee of a well-known estate agent wanted to set up on his own. In the promotion of his new estate agency, the former employee ran a number of ads in which the name of the well-known estate agent appeared.
The estate agent felt that this could not be right. The former employee was using his name and reputation to promote his new estate agency, trading on the goodwill and reputation he had built.
The former employee disagreed. He did not see it as sponging – mentioning the estate agent’s name should be seen as resume information, which was standard practice in the industry.
Injunction against using the name
The Copenhagen Maritime and Commercial Court ruled in favour of the estate agent, holding that his name was protected as a trademark. By his unauthorised use of the estate agent’s name, the former employee – who was now a competitor – had acted contrary to the Danish Trademarks Act and the Danish Marketing Practices Act.
The Copenhagen Maritime and Commercial Court ruled in favour of the estate agent, holding that his name was protected as a trademark. By his unauthorised use of the estate agent’s name, the former employee – who was now a competitor – had acted contrary to the Danish Trademarks Act and the Danish Marketing Practices Act.
The estate agent was therefore entitled to a discretionary sum of about EUR 13,500 from his former employee in compensation and as a fair price for having used his name. However, the estate agent had claimed about EUR 340,000.
Norrbom Vinding notes:
- that the decision illustrates that employers may be entitled to compensation and equitable remuneration if their name is used by former employees setting up in business on their own and if the former employees are not authorised to use the name; but
- that compensation and equitable remuneration will generally be awarded by the courts as a discretionary amount.
The above does not constitute legal advice and should not be relied upon as such
For more information please visit www.norrbomvinding.com
For more information please visit www.norrbomvinding.com
