What Is Trade Marktrade mark: a symbol, most commonly used in conjunction with... More Infringement?
Trade marks are words or symbols used in association with goods or services in order to identify a company or its products. Trade marks are a form of intellectual propertyintellectual property: a piece of work or a creation by th... More and are protected either by registration or (where registration has not been obtained) by established use. Trade marktrade mark: a symbol, most commonly used in conjunction with... More infringement takes place where, inter alia, one party uses another party’s registered trade marktrade mark: a symbol, most commonly used in conjunction with... More without consent resulting in a likelihood of confusion on the part of the public which includes the likelihood of association with the trade marktrade mark: a symbol, most commonly used in conjunction with... More.
Directors’ Personal Liability
As a matter of law, corporate entities are legal entities in their own right, separate legal entities from their directors and shareholders. This separation protects directors and shareholders from personally liability for the debts, obligations and liabilities of their companies. The protection is commonly referred to as the “corporate veilcorporate veil: the principle that corporations are legal en... More”. There are however circumstances, including where claims for trade marktrade mark: a symbol, most commonly used in conjunction with... More infringement have been made, that the corporate veilcorporate veil: the principle that corporations are legal en... More can be lifted, and directors may be personally liable for or in connection with the acts of the company.
Grenade (UK) Ltd v Grenade Energy Ltd and Another
The Court lifted the corporate veilcorporate veil: the principle that corporations are legal en... More in the 2016 of Grenade (UK) Ltd v Grenade Energy Ltd to ward summary judgmentsummary judgment: disposal of a claim, or a defendant’s de... More against a defendantdefendant: the respondent against whom court proceedings are... More directordirector: person appointed as an officer of a company, whose... More. The case is a useful reminder of when a sole directordirector: person appointed as an officer of a company, whose... More (and shareholder) can be held liable for a company’s infringement. The claimant, who owned the trade marktrade mark: a symbol, most commonly used in conjunction with... More “Grenade” brought proceedings against the defendantdefendant: the respondent against whom court proceedings are... More company and its directordirector: person appointed as an officer of a company, whose... More for trade marktrade mark: a symbol, most commonly used in conjunction with... More infringement and passing off. The defendantdefendant: the respondent against whom court proceedings are... More company admitted trade marktrade mark: a symbol, most commonly used in conjunction with... More infringement but the defendantdefendant: the respondent against whom court proceedings are... More directordirector: person appointed as an officer of a company, whose... More argued that he should not be held liable for the actions of the company.
The Court held that the burden was on the directordirector: person appointed as an officer of a company, whose... More to show that the company’s infringement was not caused or controlled by him. As the defendantdefendant: the respondent against whom court proceedings are... More directordirector: person appointed as an officer of a company, whose... More was unable to identify anyone else who could be held responsible for the company’s infringing conduct, the Court awarded summary judgmentsummary judgment: disposal of a claim, or a defendant’s de... More against the directordirector: person appointed as an officer of a company, whose... More in favour of the claimant. The Court held that the directordirector: person appointed as an officer of a company, whose... More ought to be held jointly liable with the company on the basis that he, as the sole officer of the company, had to be responsible for the company’s actions.
The case presents an important lesson for sole company directors in particular. They may not be able to hide behind by the corporate veilcorporate veil: the principle that corporations are legal en... More in a trade marktrade mark: a symbol, most commonly used in conjunction with... More infringement claim where they have absolute control over the relevant company’s actions and cannot point to another actor behind the company’s conduct.
South Bank Legal is a London law firm specialising in intellectual propertyintellectual property: a piece of work or a creation by th... More disputes including claims where company directors are sued in their personal capacity. For a confidential discussion about any of the issues discussed above, please feel free to get in touch.