Guarding Your Brand: A Closer Look at Trademark Infringement Cases

Trademarks Valuation is very important for all types of businesses because these are invaluable assets for businesses – they distinguish your products or services in the marketplace. Building and protecting your brand should be a key priority. However, trademark infringement remains a significant threat that can damage your reputation and revenue streams. In this blog post, we’ll take a closer look at some notable recent trademark infringement cases and what businesses can learn from them.

The Rapid Rise of Trademark Trolls

So-called “trademark trolls” have become a growing menace for businesses across sectors. These entities systematically register trademarks with no intention of actually using them. Instead, they exist to extract settlements from brands that may unknowingly use a similar mark. Small businesses with limited resources are especially vulnerable to such predatory behavior.

For example, Sporty’s Farm, a small aviation business, found itself embroiled in a decade-long legal battle with a trademark troll over its name. After winning the initial case, Sporty’s Farm still faced hefty legal costs just to defend its decades-old brand. Experts caution that trademark trolls have become only more sophisticated in targeting productive brands to turn profits through litigation. Proactively registering patents and contesting overreaching trademarks is key.

Going After Counterfeits through Legal Channels

Counterfeiting remains the largest criminal enterprise globally, siphoning over $500 billion from legitimate brands annually. Savvy consumers may think purchasing knock-off goods at bargain prices is harmless. Yet counterfeits fund organized crime and jeopardize consumer safety given their lack of regulations and oversight in production.

Brands like Apple have created dedicated anti-counterfeiting teams worldwide and pursue offenders aggressively in court. In 2022, Apple won a record-breaking $300,000 settlement from a known online counterfeit distributor. The sum signals Apple’s ironclad effort to deter further attacks on its lucrative brand. Partnering with e-commerce platforms to identify illicit sales channels and pushing for legal consequences is an effective deterrent.

When Logos and Names No Longer Suffice

Distinct logos, names and other verbal or visual marks used to sufficiently set brands apart historically. However, the rise of congested product categories today means brands must often go further. For example, while apparel maker Polartec once held trademarks on its synthetic fleece fabric technology, it did not hold a patent. When knock-offs began proliferating, Polartec had to fight expensive legal battles to curb imitation, with mixed results.

Experts advise brands in highly competitive, technology-driven spaces to complement trademarks with design and utility patents. Outdoors brand Columbia Sportswear also found itself in an extended court fight around its omni-heat reflective lining featured across jackets and footwear. Rivals argued the technology had become an industry standard. Columbia ultimately succeeded, but the case highlights the importance of locking down intellectual property through patents.

When Small Differences Lead to Court

Even slight similarities in branding can land companies in hot water today. Food and hospitality brands often push this envelope, given their geographic expansion and logo-centric marketing. For example, burger chain Shake Shack sued a small business called Shack Burger for using a remarkably comparable image and name. While the single outlet restaurant argued no customer would confuse it for Shake Shack, a judge ruled its branding too similar. Shack Burger had to re-brand entirely despite having just one location.

Experts say that in sectors like hospitality where reputation intensely informs choice, firms aggressively police perceived attacks on brand identity. Images, tag lines, or Restaurant names that echo an existing major brand should be avoided, or risk costly re-branding and legal action. Proactively searching the trademark registry database helps, as does legal counsel to review branding elements.

Leveraging Fame for Further Damages

Mega-celebrities have grown savvy about the immense value of their personal brand, personality, name and likeness. Inappropriately piggybacking off their fame can compound damages sought in court. Food Network star Paula Deen aggressively sued a collaborating business partner for continuing to use her imagery and name without permission to promote new restaurants.

The legal team quantified her fame and earning power at $100 million when calculating damages sought. The judge concurred a lesser-known personality would be entitled to far less, making it a landmark ruling. Experts say the decision enables more stars to justify higher settlement sums by pointing to their A-list status. Any unauthorized commercial use of a famous face or name now invites even steeper consequences.

Key Takeaways for Your Business

• Monitor trademarks registers and rapidly challenge overreach from trolls or competitors
• Deter counterfeiting through legal action and collaboration with ecommerce platforms
• Complement trademarks with other IP protections like patents when possible
• Avoid echoing major brands too closely, however small your current scale
• Seek counsel to vet branding elements to avoid excessive similarity
• Capitalize on the value of founder/spokesperson fame and goodwill for your brand
  
  

In summary, trademark infringement poses a significant yet often overlooked threat for companies today. Yet being vigilant to protect your branding through legal channels, while avoiding encroaching on existing brands, remains critical to preserving your organization’s reputation, integrity and revenues. The cases outlined above offer some guidelines to inform your strategy as you grow your brand.