INTRODUCTION TO TRADEMARK DILUTION

Trademark Dilution is a brand name law giving the proprietor of a popular trademark remaining to disallow others from utilizing that mark in a manner that would reduce its uniqueness.

INTRODUCTION TO TRADEMARK DILUTION

Trademark Dilution is a brand name law giving the proprietor of a popular trademark remaining to disallow others from utilizing that mark in a manner that would reduce its uniqueness. In most cases, it includes an unauthorized use of another's trademark on items that do not compete with, and have little association with, those of the trademark proprietor. Dilution is a basis of brand name encroachment that applies just to well known marks. Examples of marks which will clearly be considered "famous" would be: XEROX, KODAK, COCA-COLA, and REEBOK.

To confuse the individuals, an unauthorized client makes similar marks of the famous brand names. To stop this, Trademark Dilution is the idea to offer power to the famous proprietor of the brand names. The doctrine of dilution comes directly in contact with consumers.

Section 29(4) of the Trademarks Act, 1999 by which the doctrine of dilution has been first incorporated.

According to Section 29(4) of The Trade Marks Act, brand name encroachment as dilution will happen just when the individual uses the mark which is:

  • Identical or similar to registered brand name which as of now has a reputation in India and
  • Use is on various products or services than those covered by the registration.

In the case of Daimler Benz Aktiegessellschaft and Anr. v. Hybo Hindustan, in which the issue was with the mark BENZ alongside a three pointed person in a ring which the defendant utilized or his undergarment line. The High Court, granted injunction to plaintiff and expressed that copying of mark, for example, Mercedes-Benz by anybody would bring about the depravity of the brand name law in India. The court expressed that "Such an imprint isn't available to all—not accessible to any individual to apply to anything or products. That name is notable in India and around the world, concerning vehicles, similar to its image a three-pointed star".

This is the first case In India, where the court restrained the defendant from utilizing the offended party notable brand name on the sole ground to avoid confusion or deception into an image.

In United Sates, trademark rights are registered under “The Lanham (Trademark) Act”. This Act gives exclusive rights to seller or producer to register a trademark and to restrain his competitions from using that trademark.

The Lanham (Trademark) Act prohibits a number of activities including trademark infringement, trademark dilution, and false advertising.

ELEMENTS OF DILUTION OF TRADEMARK-

  1. Fame- A brand name must be famous for dilution purposes to assert a case of brand name dilution. In many jurisdictions, the courts and the brand name office choose whether an imprint is popular or notable dependent upon the situation. In certain jurisdictions, the amount of protection will differ depending upon the degree of fame that one can illustrate.  A proprietor must demonstrate that a brand name is famous at the moment a dilution claim is made.
  2. Protects the strength of the mark for the owner- trademark dilution protects the owner of a famous mark from any entity that would weaken the ability to identify and distinguish the goods or services of the genuine mark.
  3. Necessary showing- The owner of a famous mark need only show that there is a likelihood of dilution, rather than the actual existence of dilution, to be awarded relief. 

EXCEPTIONS OF TRADEMARK DILUTION-

Any fair use, whether nominative or descriptive fair use, or facilitation, of famous mark by another person other than as designation of source for person’s own goods or services, including use in–

  1. Advertising or promotion that permits consumers to compare goods or services; or
  2. Identifying and parodying, criticizing, or commenting upon the famous mark owner.
  3.  All forms of news reporting and news commentary.
  4. Any mark including parodies, criticism or comments.

 

FORMS OF TRADEMARK DILUTION-

Section 10(3) of the Trade Marks Act 1994, deals with dilution situations.

REMEDIES-

The main remedy accessible under the Dilution Act is an order against additional dilution. In any case, if the offended party can show that the litigant willfully looked to "trade on the proprietor's reputation or to cause dilution of the mark," lawyers expenses, money related harms, and even treble damages would be available.

CONCLUSION-

The Doctrine of Dilution is the power given to the notable brand name owner. This will help in stopping the fake activities that occur after some time and to keep up the reputation of the organizations. These well-known organizations do help in the development of GDP of our nation. Section 29(4) is given as a remedy independent of the encroachment activity. The Doctrine of Dilution deals with the discretion of the courts and the tests given by the courts.

Research By - Ankita Mishra