Scottish finance expert and business mentor Craig Alexander Rattray (pictured above) is calling for stronger government support for SMEs locked in legal disputes with much larger companies.

His call comes after a trademark dispute with billion-dollar accounting software firm Xero, which he says is using a name very similar to his own trademarked programme, Know Your Numbers®.

While confident he has a strong case, Rattray says the costs of legal action, quoted at up to £750,000, make it unviable for most small businesses.

He said: “What’s the point in a trademark if it costs so much to defend it? We did everything by the book to protect our brand, but the system isn’t set up to support smaller businesses when this kind of thing happens.”

Rattray is now calling on the government to explore ways of protecting SME intellectual property – including easier legal recourse, subsidised support, and simplified dispute resolution for registered trademarks.

He commented: “Small businesses do the right thing. They invest in building something valuable and unique, they trademark it, they follow the rules. But when a big company with deep pockets comes along and uses something strikingly similar, we’re priced out of the system that’s supposed to protect us.

We need a better framework, whether that’s subsidised legal support, simpler dispute resolution, or a fund to help SMEs enforce their rights. Otherwise, what’s the point in protecting your IP if only the large corporates can afford to enforce it?”

Xero launched its Know Your Numbers initiative in Australia and New Zealand earlier this year. However, it’s the recent UK rollout that has raised concerns for Rattray, who holds the registered UK trademark for the name in the area of financial education and training services.

Rattray established Know Your Numbers® four years ago, and has helped tens of thousands of small business owners better understand their finances and make better decisions, not only through the programme but also via a successful podcast, video content and two published books all under the Know Your Numbers® brand.

He said: “We’ve built a trusted, recognised brand that makes a real difference to business owners. When we saw a billion-dollar company use the same name for a similar initiative, we were taken aback by their approach, particularly given the values they publicly promote.”

Legal advice obtained by Rattray indicates the use likely falls within the scope of his trademark, and a cease-and-desist letter was issued. While Xero acknowledged the correspondence and made a minor naming change (adding ‘Xero’s’ before the title), no agreement has been reached, despite several options being offered by Rattray to resolve the matter amicably.

While confident he has a strong case to defend, the costs of taking Xero to court are prohibitive for Rattray, and that’s where he feels the system lets down the small business owner.

He said: “Xero positions itself as a champion of small business, but this experience feels less like healthy competition and more like being sidelined by a company with significantly more resources – one that has chosen to continue despite being made aware of our trademark.

They’re offering a free programme with the same name, and that directly impacts what we’ve worked so hard to build. This is about more than just one business. It’s about protecting the thousands of small business owners who do the right thing only to be sidelined when someone with deeper pockets comes along.” 

A spokesman for Xero said: “I’m afraid we are not able to comment on that matter right now.”