Be careful with royal designations in trade names

You may not simply call yourself “Royal” or “Purveyor to the Court.” These titles are awarded by the King to companies that have existed for at least 100 years and hold a prominent, impeccable position. If you wrongly include such a designation in your trade name, this may be misleading (Article 5b of the Trade Name Act), and a judge may compel you to change the name under penalty of a fine.

What do Slagerij Michel Gleis in Aalten and Jacques Stinkens Orgelpijpenmakers BV in Zeist have in common? Both are legally entitled to use the title of Purveyor to the Royal Household. Not everyone is permitted to do so, and you may even be required to remove it from your trade name. Reason enough to think carefully about your company name.

How is a royal designation awarded?

The designation “Royal” or “Purveyor to the Court” may not be accepted lightly. The King awards it to enterprises that hold a prominent position in their region and have existed for 100 years or longer; the directors must be of impeccable conduct and the history of their origins clearly documented. The application is submitted via a special procedure to the mayor. King William I introduced the designation in 1815; since 1987, only the King (or Queen) can grant it.

The right is granted for 25 years and can be renewed. Special rules apply: financial institutions and educational institutions, for example, are excluded. Important: it is a favour, not a right — even those who meet all the conditions may be rejected. And a designation does not mean that the company actually supplies the Royal House or has a relationship with it.

Why royal designations can be misleading

If a company simply calls itself a “purveyor to the Royal Court” or “royal,” the consumer might think that it has successfully gone through the rigorous procedure — while this is not the case. Therefore, this is not permitted. Article 5b of the Trade Name Act prohibits the use of “a trade name which gives a false impression of the enterprise conducted under that name, insofar as there is a risk of misleading the public as a result.” Partly for this reason, a foundation has been established to safeguard the intellectual property rights of the Royal House.

This is how investment company Royal Dutch Holding came into the picture in 2017; it had never received permission to use the designation. The defense that it used the English name was unsuccessful: according to the judge (ECLI:NL:RBDHA:2017:15299), English is so ingrained in the Netherlands that there is no difference between “Royal Dutch” and “Koninklijke Nederlandse”. The subdistrict court ordered the name to be changed so that “Royal” was dropped, under penalty of a fine of 1,000 euros per day.

Frequently Asked Questions

May I call my company “royal”?

Not without an assigned designation. An English variant such as “royal” can also be misleading and in violation of the Trade Name Act, resulting in a forced name change.

How do I obtain the designation of Purveyor to the Royal Household?

Through an application to the mayor, provided your company has existed for at least 100 years, holds a prominent position, and the directors are of impeccable conduct. It remains a favor, not a right.

What risks do I run with a misleading trade name?

A judge can order you to change the name, possibly with a penalty for each day you fail to do so. Therefore, choose your trade name carefully.

Help with choosing a trade name

As a start-up, you have a lot to consider: contracts, terms and conditions, a legally compliant website, and a name that does not infringe on any rights or cause confusion. The legal experts at MKB Juristen help you on your way. View our starter packages or explore our expertise in commercial law.