The NRL has enjoyed a victory in round one of the code war over the PNG Chiefs name, with a judge turning down a bid by New Zealand Rugby for an urgent injunction after hearing that it could harm the expansion team’s efforts to attract players ahead of its debut season in 2028.

NZ Rugby had rushed to court ahead of the launch of the PNG team’s logo and jersey in Port Moresby next week, warning the brand value of rugby’s long-established Chiefs franchise would be “hugely damaged” by the NRL team’s use of the same name and the confusion that would arise as a result.

However, Justice Karen Grau rejected its injunction application following a two-hour hearing on Friday in New Zealand’s High Court in Wellington.

The dispute will now be thrashed out in a New Zealand courtroom early next year.

NZ Rugby’s barrister Earl Gray said it had intellectual property protections for the Chiefs in New Zealand and the NRL had been “negligent” by not bothering to check them.

“They’ve brought this issue on themselves and inexplicably, now want to get away with it,” he said. “They didn’t search, they didn’t check. They’ve thumbed their noses at New Zealand and its laws.”

The NRL argued its use of the Chiefs name in Australia and PNG was not a trademark breach in New Zealand, and maintained it would be “next to impossible to rebrand at this point”.

Barrister Clive Elliott, appearing for the NRL, pointed to the competition’s upcoming free agency period and in which some of the game’s leading players will be available, describing it as “a critical time for the [PNG] team”.

The Chiefs are expected to embark on a recruitment spree when it kicks off on November 1, and Elliott said a ruling against the NRL on Friday could create doubt about the legitimacy of the club and its name that could hurt their prospects of securing their targets.

“In this environment, there is a real potential for this club to be set back irreparably,” he said. “If there is this cloud having over this new team, people are going to say, ‘Why would I move to Port Moresby when it’s under threat’?”

‘They would have to re-brand and say, “Sorry, we probably shouldn’t have called ourselves the PNG Chiefs”.’

Justice Karen Grau on what defeat would mean for the NRL

PNG chief executive Lorna McPherson provided evidence that the team was hoping to have 12 players on its books by Christmas.

The court was told the NRL had on Thursday offered to geo-block Chiefs-related material from its social media channels in New Zealand to avoid exposure of the team name there.

NZ Rugby cited code-hopping PNG signing Zac Lomax in suggesting the sports could be mixed up and made the case that even New Zealand Prime Minister Chris Luxon confused rugby league’s Warriors and rugby’s Waratahs last month.

But Justice Grau said she thought “the average New Zealand sporting fan might not do that”.

“People who are interested in sport – surely they know their difference between rugby and league. Are you saying somebody is going to buy the wrong ticket to a game or the wrong T-shirt?” she asked.

She said the parties would have to “duke it out” in a full hearing in coming months.

The NRL could still be forced to change the Chiefs name if its loses.

“They would have to re-brand and say, ‘Sorry, we probably shouldn’t have called ourselves the PNG Chiefs’,” Grau said.

McPherson said she welcomed Friday’s decision.

“The PNG Chiefs welcome today’s decision in the New Zealand High Court and look forward to the launch of our inaugural logo and supporter jersey in Port Moresby on Wednesday, October 21,” McPherson said in a statement.

“As the matter remains before the Court, no further comment on this matter will be provided at this time.”

NZ Rugby said it respected the court’s decision but remained committed to safeguard the legacy of its team.

“Today’s decision is not a judgment on the strength of our case, and the matter will still be heard in full,” chief executive Steve Lancaster said. “As the trademark holder, our responsibility to protect the Chiefs brand hasn’t changed. We remain open to working with the [NRL] on a solution.”

The NRL owns the PNG Chiefs, which will become the league’s 19th team in 2028, backed by a $600 million Australian government package.

News, results and expert analysis from the weekend of sport are sent every Friday. Sign up for our Sport newsletter.