The Co-operative Bank’s interim injunction against the New Zealand Association of Credit Unions (NZACU) over the union’s decision to change its name to Co-op Money NZ has been rejected by the High Court.
Friday, October 31st 2014, 2:09PM
The bank filed the injunction application in July to protect its brand and avoid confusion among current and prospective customers and is disappointed with the court's decision.
The Co-operative Bank chief executive Bruce McLachlan said, “We are concerned that a financial services business is taking on a brand that has a lot of similarities to our own. We are often referred to as the Co-op Bank and we believe the names Co-op Bank and Co-op Money NZ are too close.”
NZACU chief executive Henry Lynch said the outcome is a win for co-operative principles and democratic rights, and all cooperatives in New Zealand.
“The Co-operative Bank does not have a monopoly on the terms 'co-operative’ or ‘co-op’, and we were determined to defend the right to use these words not just for ourselves, but for all New Zealand co-operatives.
"The co-operative financial industry has been operating in New Zealand since the mid 1800’s, and we have operated as a cooperative for over 50 years. The terms ‘co-operative’ or ‘co-op’ are generic and can’t be monopolised by anyone,” said Lynch.
McLachlan said the bank is not seeking to stop other co-operatives from using the words “co-operative” and “co-op” in New Zealand. “We’ve never said we want to own those terms, but when used in a financial services sense, we think that there is the potential to cause confusion.”
The Co-operative Bank will review the court’s decision before deciding its next steps. The bank, formerly known as PSIS (Public Service Investment Society), rebranded as The Co-operative Bank in 2011 after the reserve bank granted it bank registration.
