ARTICLE
9 August 2024

Trademark Infringement, Dilution And Service Mark Difference

Ka
Khurana and Khurana

Contributor

K&K is among leading IP and Commercial Law Practices in India with rankings and recommendations from Legal500, IAM, Chambers & Partners, AsiaIP, Acquisition-INTL, Corp-INTL, and Managing IP. K&K represents numerous entities through its 9 offices across India and over 160 professionals for varied IP, Corporate, Commercial, and Media/Entertainment Matters.
Though both trademark dilution and trade mark infringement are legal principles under which trademarks are protected, they do not mean the same thing nor do they attract the same consequences in law.
India Intellectual Property
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INTRODUCTION

Though both trademark dilution and trade mark infringement are legal principles under which trademarks are protected, they do not mean the same thing nor do they attract the same consequences in law. An evaluation of the meaning of trademark dilution and the manner in which it deviates from trademark infringement is central to forming an understanding of trademark protection for the trademark owners and business entities.

TRADEMARK INFRINGEMENT

Trademark infringement consists in using a trademark identical or confusingly similar to the registered trademark in relation to the goods or services, or in relation to enterprise, under which the goods or services are sold, offered for sale, recruited for in the course of trade, where the use of the trademark is likely to cause confusion about the origin of goods or services.

Key Elements

1. Likelihood of Confusion: The first limb of passing off is the confusion factor, and for trademark infringement, confusion is one of the key considerations as well. This makes it possible for the consumers to be deceived into thinking that the goods or service under offer by the infringing party are linked to the trademark owner.

2. Use in Commerce: The infringing use must be in 'commerce', this means it has to take place in connection with the offering of goods or services in the market.

3. Identical or Similar Mark: The infringing mark has to be directly similar or have similarities to the registered trademark in a manner that customers who are potential trademark users will be likely to be confused.

Legal Consequences

Trademark owners can sue this to cease the use of the trademark, obtain an injunction, and ask for damages including passage of profits made by the infringing party.

Where courts have found infringement of rights, the common remedy is an injunction to restrain further use.

TRADEMARK DILUTION

Trademark dilution is the decrease of the distinctiveness or the reputation of the famous trademark any other uses by another party, whether it creates confusion or competes directly with the owner of the famous trademark.

Key Elements

1. Famous Mark: Dilution protection is only enjoyed by a trademark that has a wellknown status outside the relevant industry among the general consuming public, and these are commonly called 'famous' marks.

2. Dilution by Blurring or Tarnishment:

Blurring: This is a situation where a wellknown trademark loses its felicity to act as a signature mark due to ordinary use with dissimilar goods or services, thus compromising their signature significance.

Tarnishment: This can happen when a prominent trademark acquires a negative image because it is related to lowquality items or services that are undesirable by the society.

3. No Need for Confusion: Despite this, dilution does not necessarily matter when consumers are likely to be confused as to the source of a specific product.

Legal Consequences

Owners also need to employ legal measures such trademarks to issue injunctions so as to refrain from the diluting use.

At times it also covers monetary damages depending on the circumstances particularly when the culprit has done so in malicious manner.

Trademark dilution and trademark infringement, while appearing close in comparison at first glance, are actually very different indeed.

1. Consumer Confusion:

Infringement: In Australian law all claims the likelihood of confusion of the source and sponsorship of goods or services being marketed must be possible.

Dilution: This does not rely on the possibility of confusion of some of the terms used in the two contexts. Trademark Law which was discussed is orientated towards protection of the uniqueness and the image of celebrities' trademarks.

2. Scope of Protection:

Infringement: Guards the trademarks that associated them with similar products' and services if the consumer is likely to be confused.

Dilution: Can maintain the wholeness of the famous trademarks to prevent their use for actions that are detrimental or that bring the trademarks to a lesser value when compared to the initial state, conditions, purpose and interrelated with the goods and services for which the trademark applicant intends to acquire one.

3. Eligibility:

Infringement: Trademark protection can only be achieve through registration of the mark and any mark that meets the criteria can sue for infringement.

Dilution: Trademark dilution is typically prohibited only with respect to famous trademarks.

4. Legal Standard:

Infringement: Out of these approaches, one of those that have been applied in the formulation of the legal standard is associated with aspects of consumer confusion.

Dilution: It is explained that the concept of paradigm shift means that a mark's infringement takes place if interferes with the trademark's characteristics, its individuality or recognition, irrespective of the consumers' confusion.

Significance of Trademark Dilution

1. Protecting Brand Equity: Symbol trademark dilution legislation help in the conservation of the essential character and associations that a well-known emblem has acquired. This confirms that the white and good nature of these trademarks are protected as enhanced by the originality to prevent deterioration by interferences that violation laws present.

2. Broad Scope of Protection: Therefore, the dilution laws provide wider protection of well known trademarks because the latter protects from any uses which are not identical to the mark but bear confusion that endanger the reputation or the identity of the mark.

3. Deterring Unauthorized Use: Possible dilution claims can also serve as a protective mechanism that discourages third party from using well-known trademarks in a manner that might affect their unique identify or image.

TRADEMARKS V. SERVICE MARKS

Both trademarks and service marks are types of protection that cover topics within the field of industrial property right that is aimed on distinguishing items in trade, where the trademark merely relates to goods, and the service mark is connected solely with services. Although they are somewhat similar in operation, there are inherent differences in the usage of and applications and the law relating to the two. It is important to highlight these distinctions so that those who wish to guard their trademarks can effectively do so.

Usage

1. Trademarks:

Goods: Trade marks are specifically employed on tangible products or merchandise. This involves writing names of products, logos, catch phrases, and other marks that appear on different items of clothing, gadgets, foods, and durable goods among others.

Examples: Nike's check mark, apple's bite symbol and CocaCola's name and symbol are some of the examples of successful trademarks.

2. Service Marks:

Services: Service marks are used for services provided to consumers. These can include services in sectors such as entertainment, finance, education, hospitality, and more.

Examples: McDonald's "I'm Lovin' It" slogan for restaurant services, United Airlines' globe logo for airline services, and FedEx's logo for delivery services.

Registration

1. Trademark Registration:

Application: The process involves filing an application with the relevant trademark office, such as the United States Patent and Trademark Office (USPTO) in the United States or the Controller General of Patents, Designs, and Trade Marks in India.

Requirements: The application must include a clear depiction of the mark, a description of the goods associated with the mark, and the filing fees.

Proof of Use: Trademark applicants must provide proof of use of the mark in commerce, showing that the mark is actively used to identify the source of goods.

2. Service Mark Registration:

Application: The process for registering a service mark is similar to that for trademarks. The application must be filed with the relevant trademark office and include a depiction of the mark, a description of the services associated with the mark, and the filing fees.

Proof of Use: Applicants must provide proof of use of the service mark in commerce, demonstrating that the mark is actively used to identify the source of services.

Legal Protection

1. Trademarks:

Exclusive Rights: Registered trademark owners have the exclusive right to use the mark in connection with the specified goods. They can prevent others from using similar marks that could cause consumer confusion.

Infringement Claims: Trademark owners can file infringement claims against parties that use identical or confusingly similar marks for related goods, potentially causing consumer confusion.

2. Service Marks:

Exclusive Rights: Registered service mark owners have the exclusive right to use the mark in connection with the specified services. They can prevent others from using similar marks that could cause consumer confusion.

Infringement Claims: Service mark owners can file infringement claims against parties that use identical or confusingly similar marks for related services, potentially causing consumer confusion.

Distinctiveness and Marketing

1. Trademarks:

Brand Recognition: Trademarks play a crucial role in building brand recognition and loyalty among consumers. Distinctive trademarks help products stand out in the marketplace.

Marketing Strategies: Effective use of trademarks can enhance marketing strategies, allowing businesses to differentiate their products and establish a strong market presence.

2. Service Marks:

Service Differentiation: Service marks help differentiate service providers in competitive markets. They allow businesses to build a reputation for quality and reliability.

Marketing Strategies: Effective use of service marks can enhance marketing efforts, helping service providers attract and retain customers by emphasizing their unique value propositions.

Conclusion

Trademark dilution and trademark infringement are two distinct legal concepts that provide different types of protection for trademarks. While infringement focuses on preventing consumer confusion, dilution aims to protect the distinctiveness and reputation of famous trademarks. Understanding these differences is crucial for trademark owners to effectively protect their brands and for businesses to navigate the complexities of trademark law. By recognizing the significance of trademark dilution, owners of famous trademarks can take proactive measures to safeguard their brand equity and maintain their trademarks' unique value in the marketplace.

Trademarks and service marks serve the same fundamental purpose of distinguishing the source of goods and services, but they apply to different types of commerce. Trademarks are used for goods, while service marks are used for services. Both require similar registration processes and offer similar legal protections, but their application in the marketplace differs. Understanding these distinctions is essential for businesses to effectively protect their brand identities and leverage their intellectual property for competitive advantage. Whether dealing with goods or services, securing proper trademark or service mark protection is a critical step in building and maintaining a strong brand.

REFERENCES

  1. https://cleartax.in/s/trademark-vs-service-mark
  2. https://www.investopedia.com/terms/s/service-mark.asp
  3. https://muds.co.in/difference-between-service-mark-and-trademark/
  4. https://www.kppblaw.com/intellectual-property/trademarks-and-service-marks/

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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