The McDonald’s trademark battle flares up as local=20 MacDonald’s opens. Karen Harverson reports
Pipping United States McDonald’s at the post _ the=20 South African version, MacDonald’s, opened its=20 doors in central Johannesburg this week, just 24=20 hours before the grand launch of its American rival=20 in Randburg.
The store, situated on the corner of Commissioner=20 and Kruis, is owned by George Charalambous, a=20 franchisee of 10 Chicken Licken stores, part of the=20 fast food chain owned by George Sombonos.
Charalambous is also owner of Daxprop which,=20 together with Joburgers, owned by Sombonos, applied=20 to have McDonald’s trademark expunged from the=20 registrar on the basis of non-use.
The two Georges won the court case against US=20 McDonald’s in October this year, but the case has=20 since gone on appeal and will be heard in the=20 Appellate Court next year.
Charalambous is also the owner of MacDonalds in=20 Durban which has been operating since 1978, a key=20 factor in the case against US McDonald’s, which had=20 not established good will in the country as it had=20 never operated here.
Speaking at the opening, Charalambous’ attorney=20 Sean Ryan said that this second MacDonald’s store=20 was just part of his client’s “orderly” expansion=20 plans. “He is proceeding with his own plans to set=20 up a chain of MacDonald’s.”
He said that even if US McDonald’s wins the appeal=20 case,it is unlikely that Charalambous could be sued=20 for infringement as he is entitled to concurrent=20 registration of the trademark because his shop had=20 been trading under the trademarks and was entitled=20 to protection in terms of the 1993 Act which allows=20 use of a well known trademark before September=20 1991.
Ryan said the 80m2 store would have opened earlier=20 but was delayed pending the outcome of the court=20 case. He says the site is ideal to attract both=20 black and white sectors of the population,”unlike=20 US McDonald’s which is setting up in a white suburb=20 with a drive-through restaurant which caters for=20 white people.”
Ryan said McDonald’s has intimated that court=20 action will be taken against Charalambous as a=20 result of the store opening but says he is not sure=20 what the action will entail.
He defended Charalambous against accusations that=20 the opening was deliberately flying in the face of=20 the US McDonald’s planned launch later this week.=20 “We opened first in Durban and this shop has opened=20 first in Johannesburg, so who is following whom?”