I bought a cleaning company from a Lady in Ohio. I have the purchaser's agreement. She said she was going to move and when she moved to Pennsylvania she open the same cleaning business using the same name I bought in Ohio. What can I do or should do to stop her from using my business name?
Didn’t your purchase Agmt cover purchase of the name as a trademark and a covenant not to compete? It should have. You should consult the lawyer you used to counsel you in purchasing the business. Was the name used as a trademark (affixed to the goods) or a service mark (used in advertising and sales)? If not, it is only a trade name and has very little protection. You may be able to sue to enjoin her use of the name on grounds of unfair competition or that it will likely cause confusion among the public, but only if she is doing business within the region where her former customers live or do business. I am not optimistic about your chances.
Cleaners' business is very local, and she's not competing for your (her former) customers since she's moved to another state, as she said she would, so it probably doesn't matter much.
But if it would potentially confuse your customers because of her advertising that reaches into OH, then it may be a violation of trademark rights, which could be what you're referring to by "company name." The companyname functions as a TM is it designates the source of your services. There are are some names. like e.g., "Ohio Cleaners," that are so generic and descriptive that they aren't entitled to any TM protection, but others e.g., like "Oaktree Cleaners" that are arbitrary and do have entitlement to protection. TM rights are acquired by use, so even if she didn't register the TM with the USPTO, there would still be rights in the name starting from when she 1st started using the TM.
What does your contract say about TM rights, does it sell the TM right to you, along with the other business assets such as its corporate stock? If so, does it provide where and when she can compete with you in the same business?
See a litigator for help so you can get your contract reviewed and discuss the details with them.
You are in Columbus, OH which is closer to Indiana than Pennsylvania. Now, if you were in Valley Grove, OH (I-70 near the PA border) and she moved just across the state line to West Alexander, PA (I-70 near the OH border) you would have a case of breach of contract and service mark infringement. However, unless you do business in an area that reaches all the way to where she is in PA, you are not likely to prevail. If you both advertise on the Internet, that brings you closer, but absent some physical proximity and absent some showing of diversion of clientele you are not likely to be able to do much. Now, if your purchase agreement has a good non-compete and non-use clause restricting the "Lady in OH" from using the same name in the same business for a certain time period in an area that includes PA, go get her. Since you are asking what you can do on this site, I am guessing you don't have such a provision upon which to build a case. That being the case, I am afraid you have no case. This is a case that depends on the facts and the purchase agreement so, if after reading this and the other answers, you think you might have sufficient facts, by all means see a trademark or business attorney and spend a few dollars to find out. Call any of us and we can review your facts, and if they justify further action, give you a referral.
