What is Reverse Trademark Confusion?

In traditional trademark confusion cases, it is often the case that a larger company contends that a smaller company is confusing the public; that the general public will think that the smaller company’s products or services are associated in some way with the larger company’s products. As a result, the larger trademark holder usually alleges that there is dilution–that its trademark is being diminished in the eyes of the public.

Imagine, for example, you created a sneaker with a swoosh that looks strikingly like Nike’s swoosh. The general public may think your sneaker is Nike’s product, and if your sneaker is inferior, that could dilute or damage Nike’s brand and its image in the public eye.

So What is Reverse Confusion?

But there is also what is known as reverse confusion, and as you may have guessed it works the other way. Reverse confusion is when a larger company uses a smaller company’s trademarks without permission.

Why would a larger company have any interest in infringing on a smaller company’s trademarks? After all, trademarks operate based on public association. In most cases, the public won’t recognize smaller company’s or brand’s trademarks as readily as they do or would for a larger company. And, the larger company would seem to derive no benefit in using what is a lesser recognized and noticeable trademark.

But it does derive one benefit: putting the smaller company out of business.

A larger company has more money, larger marketing budgets, more reach, more distribution–more everything. That means that if that larger company can flood the market with the smaller company’s trademarks, the general public will start to think that the larger company, not the smaller company, owns the trademark, and will start to associate that mark with the larger company.

The general public may forget, or never even realize, that the smaller company ever had anything to do with the trademark in the first place. In some cases, the general public may even believe that it is the smaller company that is infringing on the larger company’s trademark, when in fact it is the reverse.

In the meantime, whatever public association the smaller company has established, is lost, as it simply can’t compete with the larger company. And given the choice between what the public perceives as the same product, it will often go to the larger company to buy that product.

Suing for Infringement

Infringement actions can be very serious, but those who do win, can have their attorneys fees, as well as any damages, awarded to them. So, if you are a smaller company and feel that a bigger company has stolen your trademark or is misleading the public using your trademarks, you have every right to defend the reputation with the general public that you fought so hard to earn.

Intellectual property problems? Call our West Palm Beach business litigation attorneys at Pike & Lustig to help you.

Source:

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