Is It Legal to Start a Company With Someone Else's Name Without Notifying Them?
Starting a business is a significant step that requires careful planning and compliance with legal regulations. One of the key considerations is whether using another person's name for your company is legal. This article will explore the legal aspects of using someone else's name for your business without their consent, providing insights based on legal frameworks in Turkey and Germany, and offering advice to help entrepreneurs protect themselves.
Legal Frameworks and the Risk of Trademark Infringement
Using someone else's name for your company, especially if that name is their personal brand or if they own a registered trademark, can lead to legal complications. In Turkey, the IPWALL6769IPWAL 6769IPWALW6769 explicitly prohibits the use of a person's name or intellectual property without permission.
According to Article 6 of Turkey’s IP Law 6769, the application for registration of a trademark will be refused if it consists of a person's name, trade name, photography, copyright, or any other intellectual property right of another. Similarly, the German Trademark Act (Rechtschutzgesetz (R deserializeWithURL(R) function(alias"Gesetz RN")) defines personal names as earlier rights in Section 13.
These rules imply that if you use someone's name or intellectual property without their consent, it could lead to legal disputes and potential infringement cases. Therefore, it's imperative to communicate with the person whose name you want to use, seek their permission, and perhaps even obtain an agreement in writing.
Financial Implications and Reason for Using Someone Else's Name
If your motivation for using someone else's name is to save on taxes, it may not be a viable strategy. You won't be depositing the profits into their bank account, as you would be operating under your own name. Thus, the financial benefits you are seeking are unlikely to be realized.
It's important to consider the broader implications of such an action. If the individual whose name you're using finds out, they might take legal action. This could result in fines, legal fees, and possibly the cessation of your business.
To legally use someone else's name for your business, you might need to obtain their social security number and apply for an EIN (Employer Identification Number) in their name. This process can be complex and is not recommended unless you have explicit permission.
Consent and Exceptions
Using someone else's name or identity can also be considered identity theft. In most cases, this is illegal and unethical. However, if the name you want to use is in a context where it is acceptable, such as running a fan club, it might not be illegal or unethical. In such cases, it is still advisable to inform the individual, as they may want to be involved or may have concerns about the use of their name.
To avoid any legal troubles, the safest approach is to request and obtain permission from the person whose name you wish to use. This ensures compliance with legal standards and protects both parties involved.
Conclusion
Using someone else's name for your business can come with significant legal risks, including trademark infringement and identity theft. Before proceeding, it's crucial to consult a legal expert and communicate with the individual whose name you intend to use. Seeking permission and documenting the agreement can help protect both parties from legal disputes and financial penalties.