Local businesses should be wary of infringing trademark law when choosing a company name, warns Robert Kerr, partner in Winchester law firm Shentons, as they could face legal action if they are seen to be copying the name of another company inadvertently or otherwise.

Trademark disputes are becoming more frequent, claims Mr Kerr, partly as a consequence of increased use of Internet websites because two companies could use the same domain or Internet name.

Mr Kerr said: "Should an aggrieved party pursue legal action to prosecute, they would need to produce sufficient evidence of a negative impact on their own business dealings caused by the name overlap occurring. Such evidence could sway the decision as to whether a case should proceed to court or whether it can be settled as is more usual, by a warning solicitor's letter."

He added: "Should a company feel justified in seeking legal advice regarding trademark infringement they would be wise to do so promptly. This will ensure their right to an immediate court order. Leaving matters in abeyance could be used effectively to illustrate consent to the other company's use of your name."