What is the definition of “likelihood of confusion” in trademark infringement?
In Texas, the definition of “likelihood of confusion” in trademark infringement is when a customer may be confused or misled when trying to identify the source or origin of goods or services. According to the Texas Business and Commerce Code, this “likelihood of confusion” is determined based on a number of factors, including: how similar the trade names, trademarks and likenesses of goods or services are; the similarity of their respective markets; and the degree of care exercised by customers when purchasing goods or services. Texas courts have also outlined that it is important to consider how similar and how strong the trademarks are, and how the goods or services associated with them are marketed and sold. A likelihood of confusion exists if a customer would be misled or confused about the source of the goods or services. Whether a confusion exists can also depend on other factors such as the intent of the defendant, the sophistication of the buyers, the geographic proximity between the parties, and whether there is actual confusion in the market. In general, if a customer may believe that the two companies are associated with each other, this is considered to be a likelihood of confusion. This is a critical element of the law that prevents parties from profiting off of another’s reputation or making a false or misleading claim. When trademark infringement is alleged in Texas, this likelihood of confusion is a major factor in determining a case’s outcome.
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