A company’s branding can have a direct impact on its profitability and success. When consumers or other businesses learn to trust a particular brand, they may recommend it to others. They may return to the same organization repeatedly for goods and services.
Creating a trademark that consumers can easily recognize is an important aspect of company branding. By developing a sign that represents the company, the organization can engage in more effective marketing tactics. Consumers can easily identify a company’s products on the shelves at a store or recognize their facilities. Unfortunately, competitors may try to capitalize on a company’s success by duplicating or mimicking a trademark. In such cases, legal action may be necessary.
Trademark infringement can damage a brand
When a trademark becomes synonymous with a company, people who spot the trademark expect a certain standard of quality regarding the products or services they acquire. Another company misusing a registered trademark or employing a substantially similar trademark that is likely to cause confusion among consumers could damage a company’s brand.
Customers or clients may develop an unfavorable opinion of a company if they purchase knockoff products or receive services from a professional using a similar trademark to trick consumers. They may even leave negative reviews online or consider taking legal action against the wrong business because of their confusion.
The sooner a business takes legal action in response to trademark infringement, the less likely competitors are to do real damage to the brand. The civil courts can award damages to the plaintiff and can issue injunctions preventing future infringement.
Trademark infringement is a serious intellectual property violation that can impact a company’s reputation and profit margins. Discussing issues with implications on corporate finances, including intellectual property violations, with a skilled legal team can help leaders proactively protect the businesses they have helped develop.