Some companies make knock-off products and use markings, colors, and terms similar to a popular brand to help them make money. This becomes a problem when the offending business uses marks too close to another brand. The definition of similarity falls on consumer perception and interpretation of the law.
When a customer looks for a product or service and finds too brands that look, sound, and appear the same, it can be difficult to know which one is authentic. Many deceptive business owners make money by creating logos and products that look like the real deal when in reality they often use inferior materials or processes. To protect business owners in America, the U.S. government looks closely at whether or not consumers can tell the ads, products, and names apart in a trademark fraud case.
New applicants can avoid this confusion by performing a thorough search for current trademarks on the USPTO site. Trademark holders have a responsibility to protect the mark after it is licensed to stay free of fraud. Because of the time and money a company invests in the federal trademark process, business owners can benefit from using a legal professional.
Defining Trademark Fraud
Trademark fraud occurs one of two ways. In many cases, the government says a company purposely lies on the application and tries to deceive the USPTO by withholding information, data, or images. Another way fraud occurs is when a different brand says they are the rightful trademark owner. The latter scenario often occurs between small, local brands and national firms unaware of the smaller business.
Determining fraud requires finding if a person willfully represents items in a deceitful way to get protection. It also happens when another business purposely infringes on current trademarks and creates a product with advertisements, logos, and colors with the intent to confuse and draw customers away from an established company. It takes a lot of knowledge and understanding in trademark fraud to represent clients in a lawsuit or help a company get approval for a current application under scrutiny for fraud.
State .vs Federal Rights and Protections
State filing affords some rights consistent with those in the common law area. Federal rights give holders the ability to go to court, seek compensation, and stop knock-offs at customs. State trademarks may hold more power when the state registration date is earlier than the federal application, but even then, the state mark holder can only obtain rights in a particular geographic area. Key points in state trademark filing include:
- Costs less than a federal application by as much as 80 percent
- Faster to achieve taking weeks or a few months versus several months to years
- Only protects the mark holder in the state of approval
- May use the TM, but not the official trademark registration symbol
Important points for USPTO trademark applicants
- All applications will get a once-over from a federal attorney
- Costs as much as $375 per product
- Can take years to obtain
- Requires extensive application points like a detailed drawing, image, or representation of the logo, motto, name, or jingle
- Will go into the USPTO trademark database - protection for trademark holders against fraud and to give new applicants a visual representation of current insignia under coverage
- Use the registered trademark symbol
- Trademark is accepted nationwide and useful for applying for permits in other countries
- May file a lawsuit to protect trademark
- Mark does not need to be in use to apply for protection like in state cases