A shop in the Eastern Cape has been ordered to drop the words “Sun City” from its registered company name after failing to oppose a legal challenge by Sun International, which argued the name could mislead the public into believing the business was connected to its well-known resort.
The Companies Tribunal found Sun City Tuckshop (Pty) Ltd had breached the Companies Act by using a name confusingly similar to Sun International’s Sun City trademark. In terms of the order, dated September 28, the business has 60 days to change its name.
The decision followed an application by Sun International, which owns the Sun City resort in the North West, after attempts to resolve the dispute amicably failed. The JSE-listed company, valued at about R11bn, referred the matter to the tribunal in April.
According to the ruling, Sun City Tuckshop was incorporated in 2025 and registered at an address in Main Street, Bofolo, Fort Beaufort, Eastern Cape.
The company did not respond to the application by the May 14 deadline, and Sun International subsequently applied for an order in its absence.
The tribunal found the application had been properly served at the tuckshop’s registered address and could therefore be decided without the business’s participation.
The dispute centred on whether the tuckshop’s registered name violated provisions of the Companies Act that prohibit company names from being the same as, or confusingly similar to, another party’s registered trademark, unless the trademark owner has given written consent.
Sun International argued “Sun City” was the dominant and memorable part of the tuckshop’s name and was confusingly similar to its registered trademark. It told the tribunal the brand had significant commercial value and that unauthorised use of the name could damage its business and reputation.
The tribunal agreed, finding the similarity between the names created a likelihood of confusion among the public.
In its decision, the tribunal said the names sounded the same when spoken aloud and customers might mistake the tuckshop for a business connected to Sun International.
The tribunal said the risk of confusion was particularly relevant because customers would not always examine the details of a business before deciding whether it was connected to another company.
Sun International also argued it had no control over the quality of goods or services provided by the tuckshop and that its reputation could be affected if customers associated the two businesses and were dissatisfied with the tuckshop.
The ruling was made under section 160 of the Companies Act, which allows interested parties to challenge the registration or use of a company name. The tribunal found Sun International had established grounds for the relief it sought.
The order directs Sun City Tuckshop to choose a new name that does not contain the words “Sun City” and to file the necessary amendment to its memorandum of incorporation within 60 calendar days of receiving the order.
If the company fails to comply, the Companies and Intellectual Property Commission (CIPC) must change its name to its registration number, 2025/301196/07, as a temporary name within 60 business days.
The tribunal made no order about legal costs because the matter was unopposed.
Business Day
Nompilo Zulu
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