This site provides New zealand Franchising Information on this powerful distribution method

Every person or organisation trading in the market place will be aware of the importance of names and logos, which are used to differentiate the goods and services on offer and the business entity providing the goods or services.

In New Zealand, these names are generally classified as being Trade Marks (including service marks) and Company names.

There is a great deal of confusion in the market place as to the difference between these.

TRADE MARKS
A trade mark is used to indicate the origin or trade source of the goods / services to which is applied or in relation to which it is used. Since May 1988 services marks have been available for registration in New Zealand. Registration of a trade mark is not compulsory in New Zealand, but it is strongly advised.

A trade mark is a valuable business asset, in many instances arguably a business's most important asset. Many New Zealand companies are now putting the value of their trade marks in their balance sheets to better reflect shareholder value in a company. It appears that this practice is likely to continue with renewed vigour as a consequence if the new solvency test under the Companies Act 1993.

Registration of a trade mark is obtained under the Trade Marks Act 1953. Registration provides the proprietor of a trade mark with the exclusive right to use and control of the trade mark throughout New Zealand for the goods/services for which the trade mark is registered.

The Trade Marks Act 1953, gives a registered proprietor a statutory right to sue for trade mark infringement. This means that a registered proprietor may take a case to the High Court to prevent any infringement or use of the mark by any other person or company. Infringement proceedings under the Trade Mark Act are easier than the common law "passing off" action where it is necessary to provide evidence of reputation and the likelihood of injury.

The rights to use a trade mark may also be franchised or licensed to other users.

COMPANY NAMES
Section 10(a) of the Companies Act 1993 requires a company to have a name. A New Zealand company cannot be registered using a name unless its name has been approved and reserved by the Registrar of Companies. Registration of a company name does not confer any proprietary rights in that name.

Prior to applying for a trade mark or company name approval it is recommended that a check of the relevant registers be effected eg. the trade marks register and Companies Office register. The purpose of this is to ascertain of a name can in fact be used and to make an informed decision as to the appropriate course of action.

Consideration should also be given at an initial stage, if name protection is sought, as to whether a person or organisation trading should be seeking trade mark registration and/ or incorporation of a limited liability company.

Due to the increasing awareness and importance of intellectual property matters in trade, it is apparent that consideration to such matters at an initial stage is becoming increasingly important.