Hello!
Note: When I initially wrote this article, it was very long. So to keep my readers engaged, I decided to split this article into two posts. I hope you find this information helpful.
Today I am going to discuss Trademark Dilution. I will explain what it means and in my next post I will discuss how Dilution may or may not afffect you as a trademark owner.
Dilution is when another company or individual uses your famous trademark or brand name on a totally unrelated product or service and their use of your trademark "dilutes" the distinctiveness of your product or service. Dilution can occur even if the unrelated product or services is not competitive or may not cause a likliehood of confusion, i.e., consumers would confuse the two companies' product or services. I will explain this concept in the example below:
Your company name is XYZ, Inc. You own a trademark for distributing tech gadgets. You have built a brand name and reputation as a leader in distributing tech gadgets. However, another company comes along and names their company XYZ, Inc. but they don't sell tech gadgets, they sell street clothing. Although, the products sold are totally unrelated, the consuming public can assume that company XYZ, Inc., which sells tech gadgets, has ventured into the business of selling street clothing. XYZ, Inc., the tech company, does not want to be known for selling street clothing. They want to be known as the leader in selling tech gadgets. And of course, XYZ, Inc., the street clothing company, wants to use the XYZ name because they can gain recognition off of the brand name and reputation of XYZ, Inc., the tech company. Thus this is how dilution of a brand occurs and why well knowned or famous trademarks want to avoid it.
So how does Dilution affect you as a trademark owner? Stay tuned for my next post to find out.
No comments:
Post a Comment