INTRODUCTION
Consumers are frequently confronted with trademarks in everyday life in today’s branded world. They recognize the brands not by their names but by their trademarks, such as the swoosh logo of Nike, the three parallel lines of Adidas, the bite logo on an iPhone, and the MacBook. Customers use these marks to identify products and naively believsudadera cobra kai husqvarna kettensäge einhand album la moufle personnage combinaison cache coeur pantacourt jean designer sneaker herren weiß lampada antica amazon store bateau 120×180 longboard shop potsdam ray ban classici a goccia prezzo terrazzo con giardino amazon grafico borsa amazon kussmaul pflanze animal crossing promo switch paw patrol pullover 104 amici viaggio amazone them to be of a certain price and quality. A trademark is a name, logo, or other distinctive demerceditas mujer leopardo nfl shop 49ers pánská bunda kappa vasil nike presto boys grade school dornbracht armatur bad adidas buty yung 1 adidas duramo slide core black papuci cu toc mic argintii adidas buty yung 1 nike air max 270 women’s sale elan sanke brosse pour nettoyer les pailles Canada pulseiras champions avulsas כבל חשמל למדפסת hp 1510 zara retoursign that sets your goods or services apart from those of other vendors. It’s the trademark that allows a customer to recognize a product. When carefully chosen, these marks turn into a useful asset for the company by maximizing its marketing initiatives, building important customer awareness, and ultimately increasing sales.
Trademarks are a critical aspect of business branding, protecting the unique identity and reputation of a company’s products or services. However, not all trademarks are created equal, and improper trademarks can pose significant risks and disadvantages for businesses. Improper trademarks refer to trademarks that do not meet the legal requirements for trademark protection or are improperly used or maintained by businesses.
What is a valuable or proper trademark?
- Shouldn’t be identical to other items’ and services’ trademarks that belong to the same category as yours. For instance, if you own a clothing company, your brand’s mark should not be identical to any other clothing company’s mark. If it is, it may be denied under Section 11 of the Trademark Act of 1999 because it is likely to be confusing with any already registered marks in the clothing category. You can find the category or class of products and services at WIPO NICE CLASSIFICATION.
- Should not specify the kind, caliber, and nature of the products and services it is connected to. For instance, if you own a pizzeria, you cannot register the phrase “India’s best pizza” as a trademark.
Disadvantages of selection of an improper trademark
Trademarks are primarily used to indicate the source of goods and services and to set your products apart from those of other sellers. Therefore, the primary goal of the trademark, namely to distinguish your goods and services from those of another seller, is thwarted if you choose a mark or name that is close to or identical to another mark and is registered in some way. The consequences of choosing a bad or similar trademark might be manifold.
- Lack of Legal Protection
One of the primary disadvantages of an improper trademark is that it may not receive proper legal protection. To qualify for trademark protection, a trademark must be distinctive, not generic or descriptive, and must be used in connection with specific goods or services. Improper trademarks, such as those that are too generic or merely descriptive, may not meet these legal requirements and may be difficult or impossible to enforce in case of trademark infringement. This can leave a business vulnerable to competitors who may use similar marks, dilute the brand’s reputation, or even engage in counterfeiting.
- Infringement Claims
If a business uses an improper trademark that is similar to an existing registered trademark or another protected mark, it may be at risk of infringing on the rights of the trademark owner. This can lead to costly legal battles, damage to the business’s reputation, and financial penalties, including fines and damages. Infringement claims can also result in the requirement to rebrand, which can be expensive and time-consuming and may result in loss of customers and market share.
- Loss of Trademark Rights
Another disadvantage of improper trademarks is that they may result in a loss of trademark rights. Trademark rights are acquired through actual use of a mark in commerce, or registration with the appropriate government agency, such as the United States Patent and Trademark Office (USPTO) in the United States. If a business fails to use its trademark properly or maintain its registration, it may lose its trademark rights, leaving the mark open for others to use or register. This can result in a loss of the business’s investment in building the brand and the need to start from scratch with a new trademark, which can be time-consuming and costly.
- Brand Confusion and Dilution
Improper trademarks can also result in brand confusion and dilution. If a business uses a mark that is similar to another business’s mark, it can create confusion among consumers, leading to lost sales, customer dissatisfaction, and damage to the brand’s reputation. Additionally, improper trademarks that are weak or generic can dilute the distinctiveness and exclusivity of the brand, making it less effective in identifying and distinguishing the business’s products or services from those of competitors.
- Missed Business Opportunities
Properly registered trademarks can provide valuable business opportunities, such as licensing, franchising, and expansion into new markets. However, improper trademarks may not provide the same level of protection or recognition, which can result in missed business opportunities. For example, without proper trademark protection, a business may struggle to license its brand to other businesses or may encounter challenges in expanding its brand into new geographic areas or markets, limiting its growth potential.
CASE LAW
- Starbucks Corporation v. Sardarbuksh Coffee & Co. & Ors.
Facts: Sardarbuksh Coffee & Co. was the target of a trademark infringement lawsuit brought by Starbucks Corporation. The response provided comparable services to Starbucks and used the same logo (two concentric circles) and name (Sardarbuksh), which is phonetically similar.
Issue: The question at hand is whether the two trademarks are identical or just superficially similar.
Rules and Provisions – According to section 11 (2) of the Trademark Act, 1999, a trademark application will be denied if it is identical to or confusingly similar to an already registered mark.
A registered mark is defined by Section 29 of the Trademark Act of 1999.
Judgment: The court determined that the complainant’s mark and the respondent’s trademark SARDARBUKSH are phonologically similar and ordered the respondent to change its mark to SARDAR-JI- BAKSH.
Analysis- With an identical or misleadingly similar logo, the respondent was using his mark SARDARBUKSH for services in the same class (Class 35) as the complainant. This suggests that the respondent intended to take advantage of the complainant’s goodwill and profit from the confusion brought on by a similar name and emblem.
CONCLUSION
In conclusion, improper trademarks can have significant disadvantages for businesses. Lack of legal protection, infringement claims, loss of trademark rights, brand confusion and dilution, and missed business opportunities are some of the risks associated with improper trademarks. Businesses must understand and comply with the legal requirements for trademark protection in their respective jurisdictions, and seek professional legal advice when selecting, registering, and using trademarks to avoid these potential pitfalls and safeguard their valuable brand assets.
