Mighty River fighting

By CHRIS DANIELS

State-owned power company Mighty River Power is going to court to stop its rival Empower mentioning it in advertising, even though a new law will make it legal in less than a year.

Mighty River Power sells electricity under the Mercury brand and has asked the High Court at Auckland to stop its privately owned rival Empower mentioning its name in advertising.

Empower, a budget brand owned by Contact Energy, ran a television advertising campaign before Christmas urging people to buy its electricity.

In the commercial, Mercury customers were prompted to ring Empower and switch over their power supply. This use of a rival's name, as long as it is done fairly and without denigration, is specifically allowed under the new Trademarks Act passed by Parliament in December.

But this law does not come into force until later this year, so Mighty River is taking its action under the old Trademarks Act of 1953.

If it is successful in getting a summary judgment, it could ask for damages or an injunction to stop Empower using the Mercury name.

But Empower can resume using the Mercury name in its advertising once the new law is enacted.

It is Mighty River Power's owner, the Government, that will start enforcing this law once the regulations are drafted.