Company name (dénomination sociale)

The company name (denomination sociale) is the name that identifies a company as a legal entity. It appears in the articles of association and in the French trade and companies register, and must be shown on all corporate documents. It differs from the trade name, which designates the business as a going concern, and from the shop sign, which designates a particular establishment. A company has only one company name but may use several trade names and shop signs.

Choosing and protecting a company name

The choice is free, provided it does not infringe third parties’ earlier rights: trade marks, company names, trade names, domain names or personal names. A clearance search is therefore advisable before incorporation. The right in the company name arises from the company’s registration and subsists for as long as the company exists. Protection covers the whole national territory, through the action for unfair competition, where a third party adopts an identical or similar name creating a likelihood of confusion in view of the similarity of the activities concerned.

Company name and trade mark

Under Article L. 711-3 of the French Intellectual Property Code, a company name is a prior right enforceable against a later trade mark where there is a likelihood of confusion on the part of the public. Its owner may file an opposition before the INPI or bring a cancellation action. Conversely, adopting a company name that reproduces or imitates an earlier trade mark may amount to trade mark infringement where the name is used in the course of trade for similar goods or services. The court may then order the company name to be changed, subject to a periodic penalty payment.

Key points

In practice, a company name should be chosen with the same care as a trade mark and protected by a corresponding trade mark filing and domain name registrations. Disputes often arise when former employees or partners set up companies, or when a business expands into new activities. The firm handles such disputes as part of its intellectual property practice.