CG68210 - Goodwill: unregistered trade marks
The term “trade mark” refers to a name or symbol
used to identify the goods produced by a particular manufacturer or
distributed by a particular dealer that distinguishes them from
products associated with competing manufacturers or dealers. It can
also refer to a name or symbol used to identify services provided
by one undertaking from those provided by other undertakings.
A trade mark cannot be registered unless and until the
holder makes a successful application under the provisions of the
Trade Marks Act 1994 or a similar Act in non-UK jurisdictions.
Following registration a trade mark will revert to its unregistered
status if it is not renewed at the end of its initial registration
period.
Unlike the position for registered trade marks, see CG68220,
there is no right of action for infringement of an unregistered
trade mark. The only protection available in law for an
unregistered trade mark would be by means of an action for
“passing off”. Passing off is a wrongful invasion of a
right of property vested in the claimant. The right which is
protected by an action for passing off, however, is not the
claimant’s proprietary right in the unregistered mark, name,
logo etc which the defendant has misappropriated but the goodwill
and reputation of his business which is likely to be harmed by the
defendant’s misrepresentation. In order to succeed in an
action for passing off the claimant must prove that goodwill
existed in the unregistered mark, name, logo etc in question. An
action for passing off does not protect the unregistered trade mark
itself but the goodwill of the business in which it is used.
An unregistered trade mark is an intrinsic part of the
goodwill of a business. It does not exist as a separate asset
within the meaning of TCGA92/S21 (1). It is not capable of
assignment separate from the goodwill of the business in which it
is used.
Any case in which it is argued that an unregistered trade
mark has been transferred without the business in which it is used
should be referred to the CG Technical Group.
Guidance on obtaining valuations of goodwill is given at
CG68300+.
