Phones4U in battle over website name

PHONES4U, the 353-strong mobile phone shop chain owned by telecoms tycoon John Caudwell, is suing similarly named Phone4U UK Internet for alleged trademark infringement.

In the High Court, lawyers for Phones4U allege that 40-year-old Persian Abdul Heykali and New World Communications use their website to sell mobile phones under their title.

The website began operating in January 2000 and has been attracting users who mistakenly think they are contacting Phones4U.

Caudwell's company was named in 2001 and 2002 as the fastest-growing retailer in Britain. Court documents today showed that its turnover is running at £485m a year. The case is expected to last several days.

Heykali owns a mobile phone shop in Balham, south London, and he is a 100% shareholder of the business.

In the High Court his lawyers said that his company received about 500 emails a week for Phones4U by mistake, but always redirected them.

In evidence, Phones4U employees said Heykali wanted £100,000 for his website. They said company executives did not know whether to meet the offer or take legal action.

The Caudwell group was founded in 1987 as a small retail outlet, Midland Mobile Phones, and took eight months to sell its first order of 26 phones.

It now employs more than 5,000 people, selling 26 phones a minute.