Legal Question in Business Law in California
I know a company called .................., Inc which is headquartered in Southern California. Let's just say I want to start one just like them oversea under the same brand and providing the same services? Do I have to contact them through a lawyer? What do I have to do?
3 Answers from Attorneys
It depends on the business decision of whether (a) their services or brand are so unique that you would need to set up the overseas company under that brand, or (b) whether you could perform the same services under a different, slightly changed, brand. If the former, you would need permission and some sort of franchise agreement. Call the CEO of the company, tell him or her what it is you want to do, and maybe extend a lunch invitation. If they won't deal with you, on to plan (b).
The other attorney is right on point here. A franchise attorney will say if you want to tap into their know-how and brand recognition, an international franchise is probably the best route. Depending on the country or countries involved, this may be relatively inexpensive, compared to franchising in the U.S. which is heavily regulated. A bargaining chip could be that you prepare the international document(s), so they can go international essentially at your expense. You can contact them directly, or have a franchise attorney contact them on your behalf. Consult with a good franchise attorney for specific advice.
Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Attorney
The answer may depend upon the laws of the foreign jurisdiction as well as the laws of California and the United States. The following assumes the foreign jurisdiction adheres to standard international trademark treaties or has similar laws and enforcement policies.
First, trademarks are divided into those that are famous and those that aren't well-known. The determination of famous or not may not be known unless and until the question arises at trial, but generally speaking, and for example, you could not get away with starting a Ford Motor Co. of Andorra or a Coca-Cola Co. in Liechtenstein, even if the companies didn't make cars or soft drinks.
Next, there are infringement guidelines based on product type. One company's use of "Purple Passion" for lipstick probably doesn't prevent another company from using the same name for its red wine, or a third from using the name for a paint color.
Finally, there can be use of a similar or identical trademark without infringement if there is a wide territorial difference in their areas of operation. A barber shop can be called "The Clip Joint" in Boston even though there is also one in San Diego (and probably elsewhere). They don't compete, and there is little likelihood of consumer confusion.
This is only a general discussion and it would be wise to discuss your proposed name, product or service, and operating plans to an intellectual-property (trademark) lawyer near you for an initial discussion where more facts can be considered.
Related Questions & Answers
-
I am a 1099 employee who works for an Realestate broker. I consistantly pay out of... Asked 10/22/10, 11:36 am in United States California Business Law
-
Hi, For a couple months this summer I worked for an organization that does voter... Asked 10/21/10, 7:28 pm in United States California Business Law
-
How can an employer treat a commission check like a bonus and tax it at the highest... Asked 10/21/10, 11:27 am in United States California Business Law
-
I own an auto repair shop in southern california i purchased a used engine from a... Asked 10/19/10, 2:51 pm in United States California Business Law