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Goodwill
Intellectual Property Rights

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Term: goodwill

1.

In the context for business reputation, at law goodwill is the attractive force that brings in custom. Goodwill and reputation are prerequisites for a successful action in Passing Off. Goodwill is created by trading activity. Whether is exists in a particular trading enterprise (as well non-profit enterprises) depends upon the particular facts of the case, and in exceptional circumstances may be created in pre-launch preparations and short periods of time. Depending on the scale of the trading activities, residual goodwill may remain despite the cessation of trade.

Usage: The business had sufficient goodwill in locality in England to sustain an action in passing off.

Related Words: reputation; passing off; trade mark; registered trade mark; intellectual property; confidential information; trade secrets; copyright; registered design rights; intellectual property rights; patents.


 

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