Actually guys, sorry... But this CAN be quite a serious can of worms!
If the other company (or individual) has been trading longer THEY have the right to the 'brand'; it's that simple. - And it's bolstered/evidenced by the fact they're registered at companies house.
There is NO register of business names in the UK - however the use of a business name is governed by Part 41 of the Companies Act 2006 and The Company, Limited Liability Partnership and Business (Names and Trading Disclosures) regulations 2015 (SI 2015/17)
.
Business names are automatically protected under the law of ‘passing off’. A court can order you to stop, and to compensate the owner of the same or a similar business name for any loss they have suffered, if
- they are already using the name that you want, or one like it
- the name has developed a reputation in the marketplace, so goodwill is attached to it
- consumers are misled (or might be misled) into thinking that you are the same business (ie you are ‘passing off’ your goods or services as being connected)
If you are both in the same industry sector, or trade in the same geographic area, you are at greater risk of a passing off action.
If the other business has registered the name you want, or one like it it's in an even stronger position if you are using the name in relation to similar goods and services. In these circumstances there is no need to prove anyone is likely to be misled.
To put the tin hat on it... If there is a design element in a name, like a logo or graphic, it may be a ‘literary creation’ and therefore automatically protected under copyright law, too. The other business can take you to court for infringing their copyright if you intentionally copy it, or a significant part of it. If you use it on your goods you can be forced to stop, hand them over, pay damages and account for profits you have made. Depending on the circumstances, it may also be a criminal offence.
How do I know this? Well primarily my own business services the marketing and PR 'trade'; I also lectured for a dozen years in TV production with Entrepreneurial Skills and Media Law as two of my specialties... I've also had to 'go to bat' to protect a couple of my own 'brands'; and got as far as the front door of the court with it... This is no fun.
The O/P 'might' be 'OK' as he's spoken to the MD of the LTD company; just remember the old adage about a verbal contract not being worth the paper it's written on though!
Then there is the fact that from a PR and marketing perspective having a confusing trading name is, frankly, a bit naff.
Get some proper legal advice on this; it might cost you a few quid now but better that than a fortune later.