Trade names law

What is a trade name?

A trade name is the name under which a business operator runs his or her operations. It is often the case that the business operator's company name or own name appears in the trade name. Trade names are important for consumers and others as they can help to distinguish between various companies. Trade names also serve a function in terms of public law, e.g. in contacts with government agencies.

Provisions concerning trade names are primarily found in the Trade Names Act. There are also provisions on trade names for various corporate forms in other legislation, e.g. the Swedish Companies Act for limited companies.

There is a close link between trade names law and trade mark law. Several of the rules that apply to trade names are therefore similar to the rules for trade marks in the Trade Marks Act.

How to obtain an exclusive right to a trade name

In normal circumstances, an exclusive right to a trade name can be obtained by registering it. This often happens at the same time as registering the actual company. The registration process examines whether there are any impediments to registration.

The majority of trade names are registered with the Swedish Companies Registration Office, but some trade names are registered with other government agencies.

An exclusive right to a trade name can also be obtained through establishment on the market. A trade name is considered to be established on the market if it has become known here in the country among a substantial part of the group it targets as the name of the business operating under that trade name. An exclusive right based solely on establishment on the market applies only within the area in which the trade name is established.

What does an exclusive right to a trade name mean?

An exclusive right to a trade name means that no one else may use an identical trade name for a business of the same kind. Protection also extends to the use of similar trade names for similar businesses, if there is a risk of confusion. Beyond this basic protection there is more comprehensive protection for trade names that are known.

The exclusive right only protects the use of a trade name in the course of trade; private use is therefore not covered by the exclusive right.

When do trade name rights cease?

The registration of a trade name can be valid for an unlimited period of time. However, the exclusive right to a registered trade name may cease in various ways, for example if the business operator ceases operations. The right to a trade name that has been established on the market ceases when it is no longer so known that it is considered to be established on the market.

Anyone who wishes to have another proprietor's trade name registration cancelled can bring legal action before a general court or apply for administrative cancellation to the agency responsible for the register in which the trade name is entered.

How does administrative cancellation work?

Anyone who wishes to have a registration cancelled can choose between bringing legal action before the courts, or requesting administrative cancellation by the registration agency (often the Swedish Companies Registration Office).

The registration agency can decide on administrative cancellation if the proprietor of the registered trade name either agrees to the cancellation or fails to contact the agency.

If the proprietor of the trade name does not wish it to be cancelled, the matter can be referred to a general court. It then becomes a regular cancellation case.

The aim of administrative cancellation is that it should be simple and inexpensive to cancel a registration in which the proprietor no longer has an interest.

How are trade names protected?

The rules on the protection of trade names are sanctioned. There are, for example, provisions on criminal liability and tort liability for anyone who infringes another person's exclusive right to a trade name. Further information about the rules on enforcement is available on the Swedish Government website: Amendments to the legislation on IPR enforcement.