Skip to content
Solved
SearchBrowse
Sign in

Contents

Official guidance
Capital Gains Manual

CG68000P · Businesses: goodwill and intellectual property rights: goodwill and intellectual property rights

  • CG68000 · Goodwill and Intellectual Property Rights: introduction
  • CG68010 · Goodwill: meaning of goodwill
  • CG68020 · Goodwill: a single asset: branches, mergers and demergers
  • CG68030 · Goodwill: ownership of goodwill
  • CG68050 · Goodwill: disposals (including incorporations), part-disposals and deemed disposals
  • CG68060 · Goodwill: restrictive covenants, exclusivity agreements, non- competition agreements etc
  • CG68070 · Goodwill: goodwill ceasing to exist: TCGA92/S24(1)
  • CG68080 · Goodwill: negligible value claims: TCGA92/S24(2)
  • CG68090 · Goodwill: death
  • CG68100 · Goodwill: partnerships
  • CG68150 · Goodwill: market value of goodwill as at 31 March 1982
  • CG68200 · Goodwill: know-how
  • CG68210 · Goodwill: unregistered trade marks
  • CG68220 · Intellectual Property Rights: registered trade marks
  • CG68230 · Intellectual Property Rights: registered designs
  • CG68240 · Intellectual Property Rights: unregistered designs
  • CG68250 · Intellectual Property Rights: copyright
  • CG68270 · Intellectual Property Rights: franchise rights, dealerships and licences
  • CG68280 · Intellectual Property Rights: franchise rights, dealerships and licences: market value as at 31 March 1982
  • CG68290 · Intellectual Property Rights: patents
  • CG68300 · Goodwill and Intellectual Property Rights: valuation procedures
  • CG68310 · Goodwill and Intellectual Property Rights: information to be supplied to Shares and Assets Valuation
  • CG68320 · Goodwill and Intellectual Property Rights: post transaction valuation checks
  • CG68330 · Goodwill and Intellectual Property Rights: disputed valuations and appeal hearings
  • CG68405 · Intellectual Property Rights: image rights: introduction
  • CG68410 · Intellectual Property Rights: image rights: the Law of Passing-Off
  • CG68415 · Intellectual Property Rights: image rights: passing-off and goodwill
  • CG68420 · Intellectual Property Rights: assignment of "image rights"
  • CG68425 · Intellectual Property Rights: image rights: licensing arrangements
  • CG68430 · Intellectual Property Rights: image rights: asset identification and valuation
  • CG68435 · Intellectual Property Rights: image rights in foreign jurisdictions
  • CG68440 · Intellectual Property Rights: image rights: non-UK image rights
  • CG68450 · Intellectual Property Rights: image rights: image rights in the UK
  • CG68455 · Intellectual Property Rights: image rights: law of passing-off
  • CG68460 · Intellectual Property Rights: image rights: Sports Club
  • CG68465 · Intellectual Property Rights: image rights: CGT implications: what else if not CGT
  1. Businesses: goodwill and intellectual property rights: goodwill and intellectual property rights: contents
  2. Intellectual Property Rights: image rights: law of passing-off

CG68455 | Intellectual Property Rights: image rights: law of passing-off

From HM Revenue & Customs · Capital Gains Manual

The Law of Passing Off

The classic formulation of passing off was set out by Lord Oliver of Aylmerton in the House of Lords ([1990] 1 WLR 491). He identified three elements that a claimant must establish in order to succeed in a case of passing off -

  1. a goodwill or reputation attached to the goods or services which the claimant supplies by association with their name, trade description or packaging, so that the public identify that name as distinctive specifically of the claimant’s goods or services;

  2. a misrepresentation by the defendant to the public, which does not have to be intentional, so that the public are likely to believe that goods or services provided by the defendant are in fact goods or services provided by the claimant; and

  3. the claimant has suffered, or is likely to suffer, damage as a result of the misrepresentation.

This is sometimes expressed as the classical trinity of reputation, misrepresentation and damage.

Consequently passing-off only protects the goodwill that a claimant has in his or her reputation. A celebrity’s identity indicia (e.g. name, voice, image, etc.) is only protected to the extent that they represent badges of the goodwill in their reputation.

Therefore provided there is reputation/goodwill, misrepresentation and damage, the law of passing-off can be used in the UK to protect a public figure from untrue claims that they have endorsed a product.

[2003] 2 All ER 881 involved an action for passing-off on the grounds of false endorsement. Former racing driver Eddie Irvine had to establish that he had a significant reputation as a racing driver and that the actions of Talksport (in publishing a doctored photograph of him listening to a Talksport radio, creating the false impression that Irvine had endorsed Talksport) was a misrepresentation that damaged his goodwill. The Irvine case was the first decision in the UK in which a passing-off action succeeded in a false endorsement case.

A recent case of passing-off involved Rihanna and Top Shop ( [2015] EWCA Civ 3) in which Rihanna argued successfully that Top Shop used her image without her permission on a T-shirt. The leading judgment in the Court of Appeal was handed down by Kitchin LJ (approved by the two other Lord Justices in that case) who began his judgment (paragraph 29) as follows -

Kitchin LJ continued (paragraph 33) -

Another case (Douglas and Anor v Hello! Ltd and others [2007] UKHL 21) concerned Michael Douglas and Katherine Zeta-Jones’ wedding photographs acquired without permission by Hello! magazine. It was alleged that by publishing unauthorised pictures of the wedding, Hello! committed a breach of confidence and the rare tort of causing loss by unlawful means. The leading judgment in the House of Lords handed down by Lord Hoffman confirmed (paragraph 124) that there is no such thing in UK law as an “image right” –

and in one of the other judgments Lord Walker said (at paragraph 293) –

These judicial authorities put beyond doubt that under UK law there is no such thing as an “image right”.

PreviousNext
PrivacyTerms