United Republic of Tanzania

Tanzania Breweries Ltd. v Qingdao Sino Tanzania Breweries and another, Commercial Case No. 49 of 2007, High Court of Tanzania, Commercial Division at Dar es Salaam

Mruma, J.

Date of Judgment: April 28, 2007

Facts

The plaintiff filed suit against the defendant, a foreign company incorporated and registered in Tanzania, and claimed that the defendant’s company name, "QING DAI SINO TANZANIA BREWERIES COMPANY" is too similar to the plaintiff’s company name, "TANZANIA BREWERY Company," which resulted in confusion to the general public. Before filing suit, the plaintiff sent a letter to notify the defendant and gave them 30 days to change their company name. The plaintiff sought declaratory relief, a permanent injunction, the removal of the defendant’s company name from the index of company names, and the removal and discarding of all infringing materials.

Holdings

(i) The mere existence of a company name cannot be the basis for invalidation, because it does not grant any proprietary rights to be asserted against that company. However, use of a company name that amounts to infringement or passing off is sufficient grounds to sue that company. Infringement or passing off exists where there is a likelihood of confusion such that the public is likely to believe that a business’s name is associated with an earlier company name acquired through reputation.

(ii) A company name should not be registered if its use would constitute infringement or passing off of an already registered company name.

Decision

The names of the companies are too similar and are likely to cause confusion. Thus, the name "QING DAO SINO TANZANIA BREWERIES COMPANY" is passing itself off as an affiliate of the plaintiff’s company. Judgment was entered for the plaintiff. The defendant was henceforth permanently restrained from using the names "QINGDAO SINO TANZANIA BREWERY COMPANY LIMITED" or "QINGDAO SINO-TANZANIA BREWERY COMPANY LIMITED." The name was struck from the index of company names.