Who owns a brand when its founder leaves?

A new UK High Court judgment involving American band “The Commodores” provides an interesting reminder that founding a brand doesn’t necessarily mean retaining ownership of the goodwill associated with it.

In Fifth Avenue Entertainment LLC v Commodore Entertainment Corporation [2026] EWHC 2730 (Ch), a company controlled by Thomas McClary, a founding member who left the band in 1984, applied to register THE COMMODORES as a UK trade mark in 2021. The application was opposed by Commodore Entertainment Corporation, the company operating the continuing band’s business, on two grounds:

• Passing off (section 5(4)(a)) – relying on its existing goodwill in the COMMODORES name in the UK.
• Bad faith (section 3(6)) – arguing that the application had been made with the intention of undermining the continuing business’s interests.

The UK Intellectual Property Office upheld the opposition on both grounds and refused registration.

On 23 October 2026, the High Court of England and Wales dismissed the applicant’s appeal, upholding the UKIPO’s findings.

The case serves as a reminder that goodwill follows commercial activity, not necessarily the individuals who originally created it. As brands evolve, founders leave, businesses are sold and trading structures change, ownership of goodwill and trade mark rights can become increasingly detached from the people who first built the brand. Ensuring that those rights are properly documented and transferred is therefore critical, particularly for founder-led businesses where the distinction between personal reputation and business goodwill can easily become blurred.

Subscribe to receive more articles like this here.