Trademark infringement occurs when the trademark rights are violated by a certain person, who can be accused and sued afterwards of trademark infringement.
A company which uses or copies a trademark registered by another company can be charged with infringement. People who register their trademarks are protected by the Trademark or Lanham Act, the act makes sure that anyone with a registered trademark will be protected from any violation of terms. The act authorizes the fact that it is illegal for anyone to copy or distribute another trademark. Fake advertising will also be punished.
A trademark infringement is possible, if you will be able to prove that there is a "possibility of confusion" between your trademark and the purportedly infringing mark. Such possibility of confusion will be determined through a "trademark analysis," wherein the following items will be analyzed:
1. The design or pattern of the mark, both on inside and outside 2. The representation of your mark and eventual meanings 3. The pronunciation used with that mark will be analyzed and discussed 4. The connection between your services or products and the ones represented by the infringing mark 5. Testing the public opinion and the effect it leaves on the clients
The common penalty being given to a party who has been proven guilty of trademark infringement is "injunction." Injunction is a court regulation wherein it orders the party to avoid doing certain actions such as infringing marks. Contrary to the common belief, injunction is not a monetary judgment. There are instances that "monetary relief" is bestowed to a winning party. Such monetary respite may include the profit lost by the defendant, the claimants' sustained damages and the over-all cost of action.
Trademark dilution is another thing. If the plaintiff has a very popular trademark, they can ask for trademark dilution. That actually means that the infringed trademark will be denied of any use in the future. There are certain aspects that make a trademark popular and they will be analyzed before taking trademark dilution in consideration.
In order to avoid any accusations regarding trademark infringement you need to come up with a very original trademark. This requires a lot of research, but it pays off when having a well known business. You can search the internet for already used trademarks to make sure that your trademark is unique. There are numerous places in the internet where trademarks can be searched. Another place is the Patent and Trademark Depository Library (PTDL) where you can also do a research on the trademarks used out there. This institution can be found in every state.
If you are accused with trademark infringement you risk losing all the good reputation you previously gained. This means making people confused and losing your clients. Nobody will ever trust your business because you cannot guarantee that your products and signature are unique.
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