The trademark laws are meant to protect business entity. It takes years and a significant amount of resources for a company to develop a strong brand that is largely acceptable in the market. Top global brands such as Apple Inc., Coca-Cola, and Samsung are worth billions of dollars because of the heavy investment the relevant companies have placed in their promotion. One of the biggest problems of counterfeiting that trademark laws seeks to fight is the possible loss of value of a given strong brand. Most of the counterfeited products are of poor quality. When a customer chooses to purchase a specific brand over others, one of the defining factors is quality. They feel cheated. The main problem that emerges from such a scenario is that such customers will not only avoid the company’s products but will also influence others against the brand. It is unfair for a company that Continue reading
International Business Management
Basic Concepts of Trademarks and Unfair Competition
Competition in the modern business environment is normal and often considered healthy. A highly competitive business environment embraces innovation as a way of meeting needs of customers in the best way possible. Companies that embrace creativity often emerge successful in such markets. They can understand emerging trends, new tastes and preferences, and what can be done to align products with new demands. It is common to find companies that use unethical practices in such highly competitive business environments. The need for business entities to operate in an environment where there is mutual respect among firms. It is unethical for a company to engage in acts that may harm other firms or customers because of the desire to make quick gains. The need to ensure that business entities and customers are protected from unscrupulous practices led to the enactment of laws and regulations that define how firms should operate. In an Continue reading
Legal Nature of Trademarks as a Form of Property
There are some laws governing trademarks which give it legal nature. A trademark is treated as an intellectual property. In fact, the law in the USA and other nations including Australia recognizes trademark as a form of property that ought to be guarded. The rights of ownership of the property can be established through registration of the symbol or mark in the patent office or through actual use in the market place. However, most jurisdictions do not recognize the legal ownership of a trademark if the ownership arises through use in the market rather than registration. In the event of infringement of rights associated with the same, the case will be treated on the basis of ‘first one to file.’ The process of registering a trade mark is similar to the process of property registration. This further reveals its legal and property nature. In the first place, the owner is supposed Continue reading
Difference Between a Patent and a Trade Secret?
A patent is an agreement between the inventor and the federal government under which the inventor receives an exclusive right to use the invention while having an obligation to make it public. A trade secret refers to any information or method giving the owner an exclusive competitive advantage if used in the business. The aim of a patent is to make the invention public while the aim of a trade secret is to keep the information hidden from publicity. While patents are limited in time, trade secrets are not. Another distinctive feature of a patent is its ability to protect the invention from being used by anyone except the owner of the patent for commercial purposes. A trade secret is not provided with such protection, as it can be used by another person if being discovered by legitimate means. The person can patent already existing trade secret if he/she discovers Continue reading
Factors Determining the Infringement of Trademark
Trademark infringement is defined as the unauthorized use of a trademark or service mark on or in connection with goods and services in a manner that is likely to cause confusion, deception, or mistake about the source of products. Infringement may be constituted as a result of a deliberate attempt by an individual or a company to benefit unfairly from the name of a strong brand by assuming a trademark that is similar to that of the competitor. In other cases, it may be a mistake caused by the inferiority and inconspicuous nature of the already existing trademark that leads to the confusion. Whether the action was deliberate or not, the affected party can seek legal redress whenever it feels that its brand name, logo, or other brand attributes have been infringed upon. It is expected of the owner of the trademark affected by the infringement to go to court Continue reading
The Concept of Dilution of Trademark
Dilution of a trademark refers to a situation where unauthorized persons use a company’s trademark on its products that do not compete with those of the owner of the mark. Such unethical business practices are common among small and medium-sized companies that do not have registered trademarks. They try to ride in the wave of the strong brand of the targeted company. For instance, a coffee shop may use the name Microsoft Inc as its name in the market. Products offered by such a coffee shop may not be related in any way with products offered by Microsoft Corporation. The two companies may not be in any form of competition. However, the act of using a known brand on a product that the owner does not offer may be considered an infringement upon rights of the owner. Customers that hold the company in high regard may be shocked when they Continue reading