When customers see a company’s trademark on a building or a package, that visual helps them to know what to expect from the company’s brand. Unfortunately, the more that a company develops its reputation, the greater the potential incentive for competitors to infringe on their trademark. Some companies might create very similar but marginally different logos or packaging. Others might pose as an existing brand to confuse consumers.
How can infringement harm a business that holds a trademark?
A loss of sales
Consumers seeking out a specific brand or product may unintentionally buy a knockoff released by the infringing organization. Every sale of a product packaged in a way that infringes on a business’s trademark could constitute lost revenue for the party that holds the trademark.
Brand damage
The loss of sales at a few locations or to online consumers who don’t properly research their purchases may not seem like a major issue. However, the products marketed using infringing packaging may not be of the same caliber as the products actually released by the company that holds the trademark.
Consumers may try to demand returns and refunds by contacting the company that holds the trademark. They may leave negative reviews online or file complaints with the Better Business Bureau (BBB). The more issues there are with knockoff products labeled and packaged in a manner that infringes on trademark protections, the greater the likelihood of the issue causing long-term brand damage for the business.
Responding assertively to trademark infringement is usually the only way to mitigate the harm that the misconduct of outside parties can cause a business in serious infringement scenarios. When another company attempts to use a trademark without permission, a lawsuit can force them to stop and may even lead to financial compensation for the harm caused.
