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Liability For Similar Business Name?
Thomas Pedreira

Q. 

I am opening a new restaurant. It is in a location previously own by other restaurant who was evicted by the landlord. The evicted restaurant has moved 3 block down the street. Our business names are similar. Can the evicted restaurant sue me for business name similarity? Is there any way I can keep the name? What kind of attorney I shall contact if the evicted restaurant sues me?

-- Anonymous

A. 

The evicted restaurant folks could certainly sue you, but whether or not they prevail is a different issue.

A first question would be whether or not the evicted restaurant has perfected the right to use their name by, for example, incorporating under this name, filing and publishing a fictitious business name statement, or registering for a trade name. Assuming so, the test will then be to determine if your restaurant name is confusingly similar or is otherwise being used to take advantage of the evicted restaurant name.

The best argument they may have is that you are in their old space and that you chose a similar name on purpose just so that their customers would come to your restaurant thinking it was still the old restaurant. Nevertheless, it sounds like a difficult case for them to prove, much less afford to prosecute, but I don't know all the facts and circumstances.

Your best bet may be to take steps immediately to protect your own business name by doing the same things mentioned above that your competitor should have done in the first place.

-- Thomas Pedreira






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