National
Mini Storage failed to get an injunction blocking Australian-listed rival
National Storage gaining an internet presence prior to a move into the
under-supplied Auckland self-storage market.
Australian-owned
National Storage Ltd has over one hundred self-storage centres in Australia. It has a high profile in sports sponsorship, sponsoring
the Wellington Hurricanes and Brisbane Broncos.
National Storage moved into New
Zealand in 2015, first into Christchurch and later into Hamilton and Wellington. It now has eyes on Auckland. The High Court was told existing self-storage
facilities in Auckland are running at over ninety per cent occupancy, driven
primarily by high immigration and limited housing availability. National Mini Storage and Storage King currently
control about eighty per cent of the Auckland market.
National Mini sued
National Storage alleging passing off and breaches of the Fair Trading
Act. It says internet advertising in the
Auckland market promoting the National Storage brand is likely to cause
confusion for potential customers of National Mini. In business since 1991, National Mini has
nine Auckland branches between Albany and Takanini.
The High Court was told
there is little brand awareness of self-storage companies. Customers live locally, most within seven
kilometres of any storage facility.
Evidence was given of detailed analyses of internet data derived from
searches for self-storage. The extent of
analysis undertaken had the perverse effect of warping search data extracted.
Justice Muir ruled
there was insufficient evidence of actual confusion or potential confusion
between the two companies by consumers undertaking internet searches for
self-storage facilities. Refusal to grant an injunction was assisted by
National Storage undertaking to restrict its on-line marketing. It undertook not to utilise search engine
optimisation techniques to promote its own site by piggybacking on search
queries for National Mini.
National
Mini Storage Ltd v. National Storage Ltd – High Court (31.07.17)
17.092