Trademarks are an important type of IPR that protect words, graphics and symbols used by a particular company. Their main role is to safeguard the consumers from being influenced by similar goods in the market. however, they also allow the trademark owner to sue anyone trying to fake their marks for making personal profits.
Laws of trademark provide for action in case of dilution of trademark of a well known firm and when there is a high probability of creating a misunderstanding in the minds of the consumers.
A trademark is considered to be diluted when a person or company tries to damage the uniqueness of the trademarked products of a popular company, which in turn might cause damage to the image of the latter company in the eyes of the consumers. For instance, if a trademark used by a company that manufactures food products is used by another company for selling pesticides, the customers might mistakenly believe that the former has entered into a business that compromises the standards of its products.
As far as the probability of misunderstanding is concerned, it is based on the deceptive resemblance of the two marks, making it hard for the consumers to distinguish between the items. The said confusion can be with regard to the real manufacturer, sponsor or any other relevant factor. The main reason behind such confusion is that firms are normally dealing with ordinary customers with average memory of the goods that they see in the market. In such a situation, the real trademark owner is at a risk of significant revenue and credibility loss due to a deliberate infringement by another firm.
These are not the only claims of violation that can be made with respect to trademarks. The trademark owner can also take legal action for pass off, which implies that some other company is trying to market its products as coming from him. In the same manner, allegations can also be brought on account of unfair market competition.
Laws of trademark provide for action in case of dilution of trademark of a well known firm and when there is a high probability of creating a misunderstanding in the minds of the consumers.
A trademark is considered to be diluted when a person or company tries to damage the uniqueness of the trademarked products of a popular company, which in turn might cause damage to the image of the latter company in the eyes of the consumers. For instance, if a trademark used by a company that manufactures food products is used by another company for selling pesticides, the customers might mistakenly believe that the former has entered into a business that compromises the standards of its products.
As far as the probability of misunderstanding is concerned, it is based on the deceptive resemblance of the two marks, making it hard for the consumers to distinguish between the items. The said confusion can be with regard to the real manufacturer, sponsor or any other relevant factor. The main reason behind such confusion is that firms are normally dealing with ordinary customers with average memory of the goods that they see in the market. In such a situation, the real trademark owner is at a risk of significant revenue and credibility loss due to a deliberate infringement by another firm.
These are not the only claims of violation that can be made with respect to trademarks. The trademark owner can also take legal action for pass off, which implies that some other company is trying to market its products as coming from him. In the same manner, allegations can also be brought on account of unfair market competition.
