Trademarks provide legal safety for certain terms, logos, graphics and other symbols used by companies for running their business. They not only ensure that the customers are not confused by counterfeit products but also permit the trademark owner to take action against unscrupulous persons or firms, who try to copy the mark for their commercial gain.
The two major causes of action brought under the trademarks framework are dilution of the trademark of a renowned company and likelihood of confusion for the customers.
A trademark is considered to be diluted when an individual or firm tries to damage the distinctiveness of the trademarked products of a famous company, which in turn might cause damage to the reputation of the latter firm in the eyes of the customers. For instance, if the trademark of a pesticide manufacturer significantly resembles that of a well known food manufacturer, customers might think that the company is moving away from its core product, which might adversely affect its perceived quality.
The likelihood of confusion arises in case of use of trademarks that are exactly alike or so deceptively similar that the customers will fail to differentiate the two. The said misunderstanding can be with regard to the real manufacturer, sponsor or any other relevant factor. The main reason behind such misunderstanding is that firms are usually dealing with ordinary customers with average memory of the products that they find in the market. In cases like these, any imitation of the mark can cause substantial financial and image loss for the company that has the rights of ownership of that trademark.
However, this is not a comprehensive list of the types of trademark infringements that can occur. The trademark owner can also bring an action for pass off, which implies that some other company is trying to market its products claiming to be coming from him. Similarly, the trademark owner can also allege unfair competition and other market malpractices.
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