DOMESTIC door company Rhino could be put out of business after infringing a trademark.
The South Hetton company, established a year ago by business partners David Turnbull and Allen Glasper, has been served notice to cease using the name Rhino or face a battle in the courts, by a Welsh company.
European Profiles Ltd, a Welsh subsidiary of steel giant Corus, registered the Rhino name as a trademark for its steel shutter doors, used on premises such as fire and ambulance stations, around ten years ago.
The South Hetton business, which provides doors for residential properties, was incorporated in May last year.
Because both companies operate in the same class of trade, the Welsh company could effectively close down its smaller rival, despite the South Hetton firm being the only one with the name registered at Companies House.
Jeremy Philpott, marketing executive at The Patent Office, said: "Although the South Hetton business is the only one registered with Companies House, it could still be taken to court because it trades in the same line of business as European Profiles, even though the products are different."
He added: "European Profiles must feel they have a strong case, because it is an offence to make unwarranted threats. They could effectively find themselves in the dock for sabre rattling at a smaller rival."
Mr Turnbull, who previously worked in the double glazing business before establishing Rhino Doors, said: "Allen and I put all our savings into setting up this company, working six days a week to get it off the ground, and now it looks as if we are going to lose everything.
"We are currently in the research and development phase of the product and only employ two staff, but we had plans to increase the workforce to around 20 within the next year."
He added: "We have been trading for almost 12 months, and it's only now that we find out that there's a problem with the name.
"We have simply been told by the solicitors for European Profiles that we must stop trading within 14 days and pay £500 plus VAT for the costs they have incurred.
"We have sought help from business advisers and various organisations and at no stage did any of them tell us there was a problem with the company name.
"People need to be more aware of what can happen when they establish a new business."
A spokesman for Companies House said: "There is only one Rhino Doors registered on our database, and that is the South Hetton business. This would appear to be a trademark issue."
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