2017-12-24
Any word, design, logo, or phrase that distinguishes your brand from a competitor's brand is your trademark. Protecting these valuable assets is vital because if these assets lose their distinctiveness, the brand stands to lose a great amount of brand goodwill. While trademark registration provides you with protection, this is simply the first step. Policing your trademarks is vital to prevent your brand from losing its value.
As a trademark law firm, we come across many business owners who assume that the Canadian Intellectual Property Office (CIPO) will police the trademarks for them. However, CIPO can only prevent infringement by registered marks. What about unregistered trademarks that may be infringing your brand’s Intellectual Property (IP)? Failure to police your trademarks can lead to detrimental consequences. Today, we discuss some repercussions of not monitoring your trademarks use:
Loss of Uniqueness
Genericity is dreaded by every trademark owner. No brand owner wants their trademarks to face a similar fate as that of ‘thermos’ and ‘aspirin’. These now commonly used terms for an insulated beverage container and a pain reliever were once corporate trademarks. They lost their trademark status as they started being used as a noun for every product that provided similar function and failed to link back to the brand that primarily owned them. When trademarks become generic, other businesses may start using them. Since courts also consider the degree to which the trademark was policed in an IP infringement claim, you may fail to win the legal action if you do not monitor your trademark usage. To prevent your trademark from becoming generic over time and losing your rights over it, you need to promptly object to people using the mark as an ordinary verb or noun.
Subject to Infringement and Loss of Enforceable Rights
It is obvious that your trademark can be subject to infringement if you fail to police its use. If you do not monitor how and where your trademark is being used, competitors may take advantage which may result in unauthorized use of the mark. Additionally, you may even lose the right to file a lawsuit for infringement if you delay while asserting your rights. Delay in taking action can result in ‘laches’; which means that you are no longer entitled to defend your rights because you failed to act in a timely fashion. Courts consider the level of diligence you exercised in protecting your trademarks when considering infringement cases.
Financial Damages and Loss of Business
Failure to police your trademarks increases chances of infringement and genericity. Gradually, customers become unable to distinguish your products from those of your competitors. Plus, if you don’t actively monitor and protect your mark, you may even fail to secure damages in trademark enforcement lawsuits. To secure damages, you need to prove the reputation held by your mark. When your mark loses its value, you are unable to prove it. As a result, you may lose business and face heavy financial damages.
Consult a Trademark Law Firm
Policing your trademark is not an option. It is a legal duty that helps you build a stronger brand and maintain your goodwill in the market. You can consult professionals at a trademark law firm to help you keep an eye on your trademarks.
