Get your own brand: Mondi wins naming fight as rival told to change

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Mondi South Africa has won a company name dispute after the Companies Tribunal ordered a company called Mondi Workplace Services to change its name, finding that it is confusingly similar to Mondi South Africa’s name and trademarks.Mondi South Africa is a subsidiary of Mondi Plc, the international packaging and paper company whose shares are listed on the London and Johannesburg stock exchanges. On the JSE it has a market cap of about R68bn. Its shares ended Monday down 1.31% at R153.61.Mondi owns many forestry, pulp, paper and packaging businesses in South Africa, along with numerous registered trademarks, which is why it brought the company name objection.In its decision, the tribunal ruled in favour of Mondi South Africa and directed Mondi Workplace Services to adopt a new name that “does not incorporate Mondi and is not confusingly and/or deceptively similar to the applicant’s”. The dispute was brought in terms of section 11 of the Companies Act, which sets out the requirements for company names. Among other things, the act provides that a company name must not be the same as, or confusingly similar to, the name of another company or a registered trademark. It also provides that a company name must not falsely imply or suggest that the company is part of, or associated with, another person or entity.Mondi Workplace Services was registered in 2023, with Mondi South Africa arguing the name fell foul of the act because “Mondi” was its dominant, most recognisable element — visually, phonetically and conceptually indistinguishable from its own trademark. Anyone coming across the name, it said, would reasonably assume the business was part of the Mondi group.That, Mondi South Africa argued, exposed it to reputational risk it had not signed up for, and it asked the tribunal to force a name change. It also asked for a fallback, asking that if Mondi Workplace Services did not comply, the Companies and Intellectual Property Commission (CIPC) should step in and rename it using its registration number followed by “(Pty) Ltd”.According to the papers, Mondi Workplace Services did not contest the application, despite being served by the sheriff.In its findings, the tribunal said section 11 exists precisely to stop companies passing themselves off using names that echo established ones. Here, both names shared the word “Mondi”, and several of Mondi South Africa’s registered trademarks were similar enough to the respondent’s name to create real potential for confusion.The tribunal found this could give members of the public the impression that Mondi Workplace Services is associated with Mondi South Africa. It further found that the respondent’s company name could mislead members of the public into believing that the two companies are connected.The tribunal ruled Mondi Workplace Services has 60 days from receiving the ruling to file the amendment to its memorandum of incorporation.If it misses that window — specifically, three months from the date of the order — the CIPC would have to step in and rename it using a placeholder. But the company will not have to pay the usual filing fee for the amendment.Once Mondi Workplace Services is off the register, whether it changes voluntarily or the CIPC replaces it, the CIPC has been directed to register the name Mondi South Africa applied for. The tribunal’s registrar has been told to flag the ruling to the CIPC. Business Day