Many people are opting to run character cafes to appeal to customers. Such concepts are most popular in Japan and Singapore, with cafes revolving around Haikyu!!, Friends, and much more. Character-themed cafes are now slowly emerging in New Zealand, and there is no time like the present to follow your dreams and open one too. However, before opening your character-themed cafe, there are some legal considerations you need to make involving trade marks, copyright, and food safety laws.
What is a Character-Themed Cafe?
In simple terms, a character-themed cafe is based on your favourite characters or a pop culture icon. You can get character inspiration from a wide range of sources, such as:
- books;
- TV shows; and
- movies.
A character-themed cafe can give you a competitive advantage, especially if you choose one with a large fanbase, such as Hello Kitty. Furthermore, not only can you incorporate your theme in your interior design, but in your menu by having themed food and drinks. Some cafes also have staff dressed on theme to create an immersive customer experience. However, if not executed correctly, your cafe can face legal problems due to intellectual property (IP) laws.
Considering Trade Marks
What is a Trade Mark?
A trade mark is IP protection registered with the New Zealand Intellectual Property Office (IPONZ). A trade mark can include:
- words;
- numbers;
- shapes;
- logos;
- colours;
- sounds;
- smells; or
- combination of the above.
A business can distinguish itself from competitors with a trade mark, thereby creating a brand image. Furthermore, you can sell or assign your trade mark to another entity if you no longer wish to use it. A trade mark needs to be renewed every ten years with a renewal fee.
Our free Trade Mark Essentials in New Zealand guide explains how to register and defend your trade mark registration.
Using a Character’s Trade Mark in Your Cafe
Trade mark violation can be a legal issue when opening a character-themed cafe. For instance, Marvel Characters Incorporated owns the trade mark of Black Widow. If you want to open a Black Widow themed cafe, you will need to seek permission from the trade mark owner (in this example, Marvel Character Inc.).
After that, the trade mark owner may ask you to pay a licensing fee to use the character in your cafe. Before paying the fee, ensure that you have sufficient capital by consulting your accountant. The trade mark owner will likely be happy for you to base your cafe around their character so long as you put the character in a positive light.
Before creating your cafe business, it is best to do a trade mark search on IPONZ’s website to check whether the character has a trade mark in New Zealand. Popular characters are likely to have a trade mark registered to them. Furthermore, you must avoid using a trade mark without permission from its owner. Else, you can be prosecuted for trade mark infringement.
Continue reading this article below the formCopyright Compliance
What is Copyright?
Copyright is another type of IP protection that applies to original works, including:
- books;
- artworks;
- images;
- plays;
- films; and
- sound recordings.
As a result, copyright will automatically apply to original works. However, many businesses use the copyright symbol to showcase their work has copyright protection. This prevents others from copying work accidentally and getting into legal issues.
If someone wants to use your copyright, you can license it for a fee. However, you must note that copyright protections only cover the expression of ideas rather than the information itself.
Copyright in Your Cafe
If the character you intend to use in your cafe has copyright protection, you should be able to run your cafe as long as you do not breach the copyright. This means you should avoid printing out Black Widow pictures from Marvel Comics as decoration or putting up Black Widow posters.
Using a character to simply inspire your cafe will not most likely not breach copyright since it is the expressions that are important. It is easier for your cafe to breach copyright through visual mediums such as artworks rather than written works.
Food Safety Laws
When running a character-themed cafe, you will most likely be serving food to your guests. Food safety standards are included in the Food Act and other related regulations. New Zealand Food Safety manages all food safety issues. Therefore, when starting your cafe, you need to fill in an online questionnaire and understand whether you need a food control plan. The food control plan outlines what your cafe needs to do to make safe food. Furthermore, it will help you identify and mitigate food-related risks.
Legal Documents
In a cafe business, you will deal with many people, including suppliers and employees. However, when maintaining such relationships, you need some key documents. Firstly, it is best to have a robust supplier contract to ensure you acquire the correct ingredients on time. Moreover, you must prepare an employment agreement for each staff member under the relevant employment laws. This will help your employees be aware of their rights and obligations.
Additionally, if leasing a property for your cafe, you will need to enter into a lease agreement with your landlord. You can ask your lawyer to review the lease to ensure it contains favourable terms.
Key Takeaways
When opening a character-themed cafe, there are four key legal considerations. The first is to check whether someone owns the trade mark over the character you intend to base your cafe on. If so, you need them to license the trade mark to you to use the character in your cafe legally. Secondly, you need to check whether someone owns copyright over the character. Finally, you must comply with food safety laws and ensure you have the correct legal documents, including employee and supplier contracts.
If you need help with the legal aspects of opening a character-themed cafe, you can contact our experienced startup lawyers to assist as part of our LegalVision membership. You will have unlimited access to lawyers who can answer your questions and draft and review your documents for a low monthly fee. Call us today at 0800 005 570 or visit our membership page.
Frequently Asked Questions
A trade mark is a type of IP right someone may hold over a character. To acquire one, you need to apply on IPONZ. Trade marks can include words, logos, shapes, colours, sounds, smells, or a combination of these.
A food control plan is a written document outlining what your cafe needs to do to make safe and suitable food for its customers. You need to fill in an online questionnaire to produce a food control plan for you.
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