Introduced into parliament on 17 August 2011, the Business Names Registration Bill 2011 has now been passed, ratifying a legislative scheme to enable the national registration of Australian Business Numbers (ABNs) and business names. It is proposed that the new scheme, which will be managed and administered by the Australian Securities and Investment Commission (ASIC), will be operational by mid 2012.

Under the new scheme:

  • businesses can register once and pay a one-off fee to have their business name registered nationally
  • businesses will no longer have to register their business name in every state and territory they trade in
  • existing state and territory registered business names will be transferred onto the national system
  • it will be possible to file a joint online application for an ABN and national business name registration
  • new business name applications that are identical or nearly identical to existing registered business names will be refused.

The purpose of the new system is to reduce red tape, and save time and costs for businesses. This new national system will streamline the business name registration process while maintaining the overall purpose of the system in allowing consumers to easily ascertain who is behind a business name.

Obtaining a monopoly in a name or brand

Businesses should be aware that registration of a business name is a statutory obligation but does not provide any property rights in the business name.

To ensure you have a national monopoly in the name or brand used by your business in relation to the goods and/or services you trade in, trade mark registration should be sought and/or maintained.

This is particularly important given the ease with which the new system will allow businesses to register and use business names nationally. The statutory rights granted by trade mark registration can be enforced against a competing business which uses a name or brand that is substantially identical or deceptively similar to the registered trade mark in relation to goods or services similar to those covered by the trade mark registration.

Conversely, businesses should ensure their business name does not infringe the rights of trade mark owners both here in Australia and, if the business exports and/or has an online presence, internationally.

Our Intellectual Property team can advise you on the impact of this new system on your business and your overall branding strategy, in particular how to strengthen and develop your trade mark rights by registration and how to avoid potential claims of trade mark infringement. Please contact Jane Owen or Lisa Egan to obtain further information.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.