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3 ways trademark infringement can hurt your business

On Behalf of | Jan 25, 2022 | Business Law

Companies often have to try something creative to stand out from the competition. Once you have established that you offer better prices or an innovative product, people will start to seek out your company on purpose.

Creating a trademark is a way to help people recognize your business. Whether it is an abstract image or a logo including your company name, you can trademark an original work that represents your company’s brand.

The federal government protects your intellectual property rights and the right to trademark an image so that other businesses can’t duplicate it. What are the risks of another company infringing on your trademark right?

They could complete sales with your customers

Your logo gives people an opportunity to seek out your brand either because they know and trust it or because someone they know recommended it. Unfortunately, other companies may try to capitalize on your brand recognition by putting your company’s trademark logo on the packaging for knockoff products. Customers looking to buy from your business could inadvertently wind up purchasing an item of lower quality, depriving your business of a sale.

Trademark infringement damages your reputation

If another business puts out cut-rate or mediocre products in packaging that appears to feature your company’s logo, those customers may try to hold your business accountable for those substandard products. Trademark infringement could lead to a flood of negative reviews and complaints online that drag down your company’s overall reputation.

People may stop trusting the product or service that you provide

Your brand isn’t the only thing at risk with trademark infringement. Companies willing to steal your intellectual property and turn out an inferior product could undermine the faith of consumers or businesses stocking products in what your company supplies.

For example, if you claim to have created the perfect lunch sandwich baggie that is both compostable and successful at containing smells like egg salad, a competitor labeling standard sandwich bags with your logo might make people assume the technology you integrate into your product doesn’t actually work.

Fighting back aggressively against trademark infringement is the only way to prevent someone’s misuse of your logo from damaging your company, its market share or its financial future.