Choosing the Right Name for Your Business and protecting your goodwill

23 Sep 2025

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Getting your business name right at the start can save a lot of hassle later. The wrong name can cost you time, money, and the goodwill you have worked hard to build. Here is what to think about before you commit.

Future proof it

Pick a name you will not outgrow. If your name is tied too closely to a single product, trend, or location, you may regret it when your business grows or shifts focus. A short, simple name that can handle abbreviations or expansions is often safest.

Check that it is available

Before progressing any proposed branding check that your name is free to use:

• Companies Office – find out if the name is identical or almost identical to an existing company. You cannot register a name that is identical or almost identical to another company.
• Domains and social media - make sure you can secure the website and key handles. If people cannot find you, the name loses its value.
• Trade Marks – check whether someone else has registered or attempted to register the same or a confusingly similar name by searching the Trade Marks Register
• Conduct a simple Google search to check whether anyone else is using the same or a confusingly similar name.

A Companies Office check alone is not sufficient. Even if you can register the company name, you could still be infringing someone else’s trade mark.

The YFC and KFC situation is a good reminder. Earlier this year a Christchurch food truck called YFC (Yang Fried Chicken) had to rebrand after KFC objected to the perceived use of its trade mark.

While some criticised KFC for enforcing its trade mark against a small operator, if a trade mark owner does not act against confusingly similar use (however trivial or humorous as such use may seem), it risks the mark becoming diluted or even losing protection altogether.

Protecting intellectual property

Explore the possibility of registering your name as a trade mark.

Having registered a trade mark make sure you protect the registration. This involves using the trade mark in a manner that is consistent with the registration and taking steps proactively to stop others using the same or a confusingly similar trade mark.

A trade mark that is not used is susceptible to being challenged for non-use. Some global brands, like In-N-Out Burger (which recently organised a pop up) occasionally run short-term “pop‑up” stores in countries like New Zealand where they do not permanently operate. This is often less about immediate sales and more about protecting their trade marks. Despite not operating in New Zealand, In-N-Out Burgers has had registered trademarks (trade mark number:213097) registered in New Zealand since 1991, and their occasional pop-up stores enable them to claim continued trade mark protection.

If a trade mark becomes “commonplace”, for example, if competitors are allowed to use similar branding without challenge, the trade mark could lose its distinctiveness and, ultimately, its legal protection.

Well-known examples internationally include:

• Aspirin - once a Bayer trade mark, now a generic term in many countries.
• Escalator - originally a registered trade mark of Otis Elevator Company, which was lost after becoming a generic term for moving staircases.

Accordingly, enforce your rights consistently or risk losing them.

Why this matters

If you are forced to rebrand, you lose:

• time, which can often be critical in a competitive market-place;
• money including the cost of marketing, advertising, new signage, and livery; and
• the goodwill you have worked hard to build up.

In short

• Pick a name that can grow with you.
• Check the Companies Office for availability.
• Secure your domain and social media handles.
• Search the Trade Marks Register before you spend a cent on branding.
• Do a simple Google search.
• Protect your name and brand by registering trade marks.
• Use your trade mark and take action to prevent any misuse of your trade marks.

Doing this is cheap insurance against an expensive rebrand, or loss of your brand name.

If you are considering a new name or planning to expand your brand into new markets, our Commercial Law Team can advise on availability, trademarks and long term protection strategies. Please contact us if you have any questions regarding the same.

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Commercial