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Business Rights in California Law

‘Business rights’ include good will, state trademarks, and trade names and designations

By Chris Micheli, January 12, 2023 7:33 am

California’s Business and Professions Code sets forth a number of “business rights” under Division 6, which include good will, state trademarks, and trade names and designations. Chapter 1 of Division 6 concerns “good will” and these provisions have been in the law since 1941.

Business and Professions Code Section 14100 defines the “good will” of a business as the expectation of continued public patronage. Section 14101 provides that the good will of a business does not include a right to use the name of any person from whom the business was acquired.

Section 14102 specifies the good will of a business is property and that it is transferable. Section 14103 authorizes a person transferring the good will of a business to transfer with it the right of using the name under which the business is conducted.

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