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HSBC has been given the all clear to continue rebranding Midland

Bank, following the dismissal of a court case brought by HFC Bank. HFC

was calling for an injunction against the use of the initials HSBC,

claiming customers were being confused by the similarity of the

names.

A High Court ruling, delivered last Friday, found that HFC had failed to

provide evidence that the name HSBC was causing sufficient confusion to

justify an injunction. The court also dismissed a damages claim by HFC,

ruled HFC liable for HSBC’s legal costs, and refused HFC permission to

appeal.

Describing the court case as ’a distraction’, HSBC spokes-man Richard

Beck said that the rebranding of Midland branches had been carried out

in June and that the global campaign was on target. Midland is expected

to complete the legal process of changing its name by early October.

Bill Dalton, chief executive of Midland, said last week that HSBC had

spent pounds 7m on trying to boost brand awareness in the UK. Global

rebranding of the larger banking group, estimated to have cost HSBC over

pounds 30m, is through Lowe & Partners Worldwide.

HFC Bank, which has 177 branches in the UK and owns the high-profile

Goldfish financial services brand, said that since HSBC changed its name

late last year it had discovered over 200 instances of customer

confusion.

’The aural confusion created by HFC Bank and HSBC Bank is quite clear

and we were obviously disappointed with the result,’ said Martin

Rutland, HFC director of corporate communications, adding that HFC would

apply to the Court of Appeal for permission to take further action.

Meanwhile, HFC is believed to be searching for an agency for the autumn

launch of an upmarket card. Mark Robinson, group marketing director at

HFC, is understood to be receiving pitches for the account, estimated to

be worth between pounds 5m and pounds 10m.