What’s in a name?
IT major Infosys is trying to restrain other companies from using the term Infosys as part of their company name. This move is to prevent the other companies (some of them are dubious!) from enjoying the goodwill that the Infosys brand enjoys.
Definitely having `Infosys’ as part of a company’s name will have a positive rub-off effect. Small wonder that over a dozen companies have ‘Infosys’ as part of their identity. But the Bangalore-based IT major is not taking kindly to this. Infosys has identified such companies and is seeking legal action against them.
Back in the 90s, lot of companies went in for such name change so that they mislead the investors and get huge oversubscription during the IPO. The term Infosys is nothing unique as it is the combination of two words associated with the IT field. Other terms like InfoTech and InfoComm also fall under the same category. We already have a company by name Infotech Enterprises Limited (IEL). If IEL becomes a multi-billion dollar company like Infosys, we might see IEL doing the same thing. If this happens, people who want to make genuine use of such names to indicate the nature of the business might be running out of choices.
Sticking to the topic of brand names, we have a case of the same name being used for a premium car and an entry-level watch. I wonder whether Hyundai has raised any issue with Titan for the use of the ‘Sonata’ name for Titan’s watch range.