February 16, 2017
The High Court has refused to allow Karen Millen to use her own name or a “confusingly similar” name for a US home wares business following the sale of her shares in her clothing company, Karen Millen Fashions Ltd to Mosaic Fashion in 2004.
Certain clauses in the share sale agreement prevented her from using her name or a name such as “KM”, “Karen” or K Millen in any business which was similar to or could compete with the Karen Millen business which she had sold, anywhere in the world.
Ms Millen’s argument, that at the time she sold her company, home wares did not fall within the Karen Millen “brand” was rejected by the Court.
The moral of the story - think very carefully before giving up all rights to your brand name when you sell your business. Especially when it is your own name.
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