Double glazing firm Safestyle UK has reached a settlement with rival SafeGlaze UK that will force the latter to change its name following alleged trade mark infringement.
The two firms, both based in Bradford, have become arch enemies since Safestyle accused its rival of “passing off, misuse of confidential information, malicious falsehood and various other matters”.
The settlement ensures that there will be no misuse of confidential information or misleading statements to customers. Safestyle said the settlement will prevent the possibility of any acts of intimidation or harassment of its workers.
SafeGlaze UK has agreed to rebrand fully within an agreed period of time. Safestyle said that further details of the settlement will remain confidential.
The group added that it is looking forward to refocusing its efforts now the case has been successfully concluded. Analyst Charlie Campbell at Liberum said: “Safestyle has announced the settlement of claims against SafeGlaze, a very aggressive new entrant to the window industry.
“Under the settlement, SafeGlaze will be rebranded and its behaviour towards Safestyle representatives restrained.”
Mr Campbell said that Safestyle might have won damages by taking the case to a full hearing, but the case was still at least a year away and would have been costly to pursue.
“We believe that Safestyle is well placed to compete with this new entrant now that it has a level playing field, and expect new management to stabilise the business and start to restore profitability. There is considerable upside in the shares if recovery can be delivered, and we await confirmation that this is underway with interim results on September 20,” he added.
SafeGlaze was launched early in 2018 by the historic founder of Safestyle and has been a very aggressive new entrant into the UK replacement window market.
Safestyle announced in May that it was launching a legal claim against SafeGlaze, through the Business and Property Courts, seeking injunctive relief and damages.
The group asked the court to examine claims of “passing off, misuse of confidential information, unlawful means conspiracy and malicious falsehood”.
Mr Campbell said: “SafeGlaze will be rebranded over an agreed period of time, and we understand that its new name will eliminate any scope for confusion between the two companies.
“The settlement also governs the relationship between the two companies in future, mainly preventing any intimidation or harassment of Safestyle representatives. This should mean that in its new form SafeGlaze will become a normal new entrant to the replacement window market, whereas until now it had been very aggressive towards Safestyle, in particular poaching a significant number of representatives from Safestyle.”