Local business One.99 Shop commenced proceedings against its competitors Lifestyle 1.99 earlier this year, demanding that the latter change its name so as to avoid confusion among the public. Both shops have similar concepts of selling items priced at S$1.99.

The One.99 Shop was started in 1997 with all of its goods priced at S$1.99. Being the first to do so, it enjoyed substantial publicity. As such, its owner contends that the One.99 Shop has built up a goodwill and reputation in Singapore.

On the other hand, Lifestyle 1.99 started business only in September 1998. Its retaliatory argument was that One.99 Shop does not have an exclusive right to sell all goods at S$1.99 each, and that it was the sales concept rather than the name that enjoyed substantial publicity. It further argued that "One.99 Shop" was made up of two "ordinary" English words to denote the sale of goods at S$1.99 each, which no one should be allowed to monopolise.

In what would appear to be a passing-off action, Judicial Commissioner Choo Han Teck decided that :

  1. One.99 Shop had earned sufficient goodwill in its name. "This goodwill comes from the association of selling quality products at the fixed price of $1.99 in a setting that is trendy and in which service was provided with a smile." It was this goodwill that entitles "One.99 Shop" to protection.
  2. Many customers were in fact confused between the two names, mistaking Lifestyle 1.99 for One.99 Shop. For example, a supplier had mistakenly referred to "One.99 Shop" as "Lifestyle 1.99" in his reply to an enquiry. Also, it was held that confusion is inevitable if both shops were referred to as the "One Point Nine Nine Shop" and that the allure of the name lay in "One Point Nine Nine" and not in the words "Lifestyle" or "Shop".
  3. Damage as a result of public confusion was caused to the plaintiffs in the form of potential customers diverted from the One.99 Shop to its competitors.

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