How is trademark infringement different from unfair competition?
Trademark infringement and unfair competition are two separate legal concepts. Trademark infringement is the unauthorized use of a trademark—words, phrases, symbols, or designs used to identify a product or service as belonging to a certain company. Unfair competition refers to any act that is deceptive or misleading in the marketplace, including false advertising, deceptive marketing tactics, or passing off another’s goods or services as one’s own. In Texas, trademark infringement occurs when a company uses a trademark that is either identical or substantially similar to the trademark of another company, causing confusion as to the source or origin of the product or service being offered. To prove trademark infringement, a plaintiff must show that the defendant’s use of the trademark was likely to cause consumer confusion, dilution of the mark, and injury to the plaintiff’s business reputation or goodwill. Unfair competition, on the other hand, is any act by a business or individual that is deceptive or misleading to consumers, and includes activities such as false advertising, deceptive marketing tactics, and misrepresenting another’s goods or services as one’s own. To prove unfair competition, a plaintiff must show that the defendant’s conduct is likely to cause confusion or deception among consumers and create an unjust advantage over other businesses in the marketplace. In Texas, both trademark infringement and unfair competition are prohibited by law, with the violations subject to civil lawsuits. The purpose of both laws is to protect the integrity of the marketplace and ensure that consumers are not deceived when making purchases.
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