2.5 corporate name policy (canada)

CORPORATE NAME POLICY in CANADA

Overview

• Two name policies used in Canada

• Elements of a Corporate Name

• Name approval guidelines1. Absolutely Prohibited

2. Qualified Prohibited

3. Obscene names

4. Lack of Distinctiveness

5. Confusing names

Corporate Name Policies

There are two corporate name policies being used in Canada (13 jurisdictions);

Substantially different (Unique names)- Corporations Canada- British Columbia (only BC names verified)

Distinguishable upon the record- Balance of Provinces and Territories

Corporate Name Policies in Canada

• Elements of a Corporate Name

ABC Manufacturing LIMITED

Distinctive Element: unique identifier of the proposed name

Descriptive Element: describes the line of business

Legal Element


CC Name Compendium (on website) and CC Name guidelines apply when deciding whether or not a proposed name is available:

1. Absolutely Prohibited2. Qualifiedly Prohibited3. Obscene4. Lacking Distinctiveness5. Confusing


1. Absolutely Prohibited:

These are names which are prohibited by legislation or regulation

A corporate name is prohibited if the name contains any of the following wording:

Air Canada Canada Standard Cooperative, Co-op or *Pool (*where the

name connotes a cooperative venture) Parliament Hill Royal Canadian Mounted Police United Nations


2. Qualifiedly Prohibited: More problematic as there is no list for these.Qualifies prohibitive are those proposed names that connote that a corporation:

Carries on business under Royal or governmental patronage.

Examples: The Queen Elizabeth Armory Services Inc., The Royal Canadian Mint, The Canadian Forces.


2. Qualifiedly Prohibited (continued):

Is sponsored or controlled by or is connected with the Government of Canada, the government of a Province, or Territory, or the government of a country:

Example: New Brunswick cannot be used at the beginning of a corporate name without consent from Registry of New Brunswick.



Connotes a connection with a University or Professional Association (accountants,architects, engineers, lawyers...):

Example: Upper Canada Lawyers’ Debating Society – Consent is required;

Example: Heritage Lawyers’ Association - No consent required.



Connotes the connection to a financial intermediary such as a bank, an loan company, an insurance company, a trust company, another financial intermediary or a stock exchange regulated by a law of Canada or a province, unless the Office of the Superintendent of Financial Institutions or provincial/territorial securities commission, as appropriate, consents in writing to the use of the name.


3. Obscene Wording: A corporate name is prohibited if it contains a word or phrase or connotes a business that is obscene:

A contravention of obscene is rare – you will know obscene when you see it.

Acceptable name: Example: Nice Bum-Bum Pants Inc.


4. Lacking Distinctiveness:

A corporate name is prohibited if the corporate name is only descriptive:

Example: Software Inc.

A corporate name is prohibited if the corporate name is only the name or surname of an individual

Example: John Turner Ltd.


4. Lacking Distinctiveness (continued):

A corporate name is prohibited if an elementof the name is the family name of an individual:

– A consent is required from the individual:

Exceptions: If the word is a dictionary word, historical person, literacy or fictional character, name of the incorporator or a director of the business applying for the name – the name is acceptable.


4. Lacking Distinctiveness:

A corporate name is prohibited if the corporate name is a geographical name used alone:

Example: Red Lake Inc - not acceptableRed Lake Gold Mines Inc – is acceptable


5. Names that lead to Confusion:

A corporate name may be found confusing with any corporate name, Trade name, Trade mark, or official mark


5. Confusing (continued):

Factors to consider in determining confusion:

The nature of the goods or services associated with a trademark or an official mark or the nature of the business carried on under or associated with a trademark, official mark or trade name; The nature of the trade with which trademark, official mark or trade name is associated, including the nature of the products and services and the means by which they are offered or distributed; The degree of resemblance between the proposed corporate name and any trademark or trade name in the appearance or sound or in ideas suggested by them; The territorial area in Canada in which the proposed corporate name or an existing trade name is likely to be used.



Treatment of existing names which are famous, highly distinctive or diluted:

Granting the highly distinctive element to a second company is more likely to generate confusion. However, the differences of the goods and services being offered, territory and the clientele must be taken into consideration;

Famous names such as Kodak, IBM or GM are not attributed as a corporate name; Distinctive highly diluted names can be accepted such as Universal Products Inc and Universal Bakery Products Inc.



Initials and confusion:

The descriptive feature is the same or confusingly similar, and the initials are identical and in the same order, or if the first initial is the same and the last initial is phonetically similar:

Example: BN construction is confusing with BM construction and BN Builders but not confusing with BF Construction.



Inactive Corporations:

Names identical the companies that have inactive for less than two years are not available


5. Confusing (continued): Confusion with a Trademark:Trade mark owned by someone other than the applicant:

TM registered for five years: Corporate name applicant needs consent from

TM owner;

TM application or TM registered for less than five years:

Prior use determination with a affidavit and the applicant had or will contest the other party’s application or registration.

Trade mark owned by the applicant


5. Confusing (continued)

Deceptively Misdescriptive:

A corporate name which is deceptively descriptive if it is likely to mislead the public, in any language with the respect to:

The business, goods or services being offered;

The conditions under which the goods or services will be produced or supplied;

The place of origin of the goods and services.


Questions?

2.5 corporate name policy (canada)

Business

Transcript of 2.5 corporate name policy (canada)