There is a lot of red tape involved in running a business – it is hard to keep track of the various legal, accounting, employment and other obligations, much less have time left to actually produce and market a successful fashion collection.
A new national business name system has been introduced to replace the previous state and territory systems, which, as any Australian business owner knows, required you to register your business name in each state or territory in which you traded. The new system aims to reduce red tape and cost for businesses. The new system has a number of benefits:
• 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 is now 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 new scheme will be managed and administered by the Australian Securities and Investment Commission (ASIC) and has now come into effect. 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.
For any existing businesses that had registered business names before the new system came into effect, you do not need to do anything. Your existing registrations will automatically be transferred onto the new system. ASIC will contact existing business name holders when it is time to renew their name.
Searching for existing business names will also be easier online and business names which are almost identical to existing registered names will no longer be accepted for registration, even if the two businesses trade in different states or territories. Costs for registering a national business name are significantly cheaper under the new online system.
You should however be aware that a registered business name still does not give you any property rights in the business name. To ensure you have an Australia-wide 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.
WENDELL TEODORO @ZEDUCE.ORG
