Basis Of Action For Trademark Infringement

Trademarks are an important type of IPR that safeguard words, logos and symbols used by a particular firm. They provide the trademark owners with the authority to bring legal proceedings against the infringers or counterfeiters of their mark and at the same time avert the consumers from falling into the trap of fake products available in the market.

Trademark laws provide for legal action in case of dilution of trademark of an established firm and when there is a significant possibility of causing confusion in the minds of the consumers.

A trademark can get diluted by the unlawful actions of unscrupulous persons or companies, which can tarnish the reputation of the company by making a wrong projection of the trademarked product with respect to a particular aspect or in a general way. For example, if a trademark used by a firm that manufactures food products is used by another company for selling pesticides, the customers might think that the former has gotten into a trade that compromises the quality of its products.

The violation based on likelihood of confusion arises when two trademarks are exactly alike or so strikingly similar that the consumers can’t differentiate between them. The said confusion can be with regard to the source of the product, sponsor or any other relevant factor. The main reason behind such confusion is that firms are usually dealing with ordinary customers with imperfect memory of the goods that they find in the market. In such a case, a trademark infringement would have significant potential to cause commercial damage to the firm that owns the genuine trademark.

However, this is not a comprehensive list of the types of trademark infringements that can take place. The trademark holder can take punitive action against a firm that tries selling off its products as ones originating from the company that owns the trademark. In the same manner, allegations can also be brought on account of unfair market competition.

Possible Causes Of Trademark Infringement Claims

Trademarks are a kind of IPR that offer protection to certain words or logos used by a firm. They not only make sure that the customers are not puzzled by fake products but also allow the trademark owner to take legal action against fraudulent persons or companies, who try to counterfeit the mark to make a profit out of it.

Trademark laws provide for action in case of dilution of trademark of a well known firm and when there is a significant possibility of creating a misunderstanding in the minds of the customers.

A trademark is said to be diluted when a person or company tries to damage the distinctiveness of the trademarked goods of a famous firm, which in turn might cause damage to the image of the latter firm in the eyes of the customers. For instance, if a trademark used by a company that manufactures edible products is used by another company for selling rat poison, the customers might mistakenly believe that the former has gotten into a business that compromises the quality of its products.

As far as the possibility of misunderstanding is concerned, it is based on the deceptive similarity of the two marks, making it hard for the consumers to distinguish between the items. The said misunderstanding can be with regard to the real manufacturer, sponsor or any other relevant factor. The main reason behind such confusion is that companies are normally dealing with average customers with imperfect memory of the products that they see in the market. In cases like these, any infringement of the mark can result in substantial financial and image loss for the firm that has the rights of ownership of that trademark.

However, this is not a comprehensive list of the types of trademark violation that can take place. One such allegation is where an action is taken because another firm is projecting its products as if they were manufactured by the trademark owner. Similarly, the trademark holder can also allege unfair competition and other trade malpractices.