Is dilution of a trademark a form of unfair competition?
Yes, dilution of a trademark can be a form of unfair competition. Dilution of a trademark occurs when a party uses or dilutes the distinctiveness or fame of an established trademark. This can be done either by copying the trademark exactly or by creating a similar mark that has an association with the original. In Texas, it is illegal for any person or company to knowingly use another’s trademark without permission in a manner that causes consumer confusion. Unfair competition law in Texas recognizes dilution of a trademark as a legal cause of action. If a company’s trademark has been weakened due to another’s use, the company can bring an unfair competition claim to court. The courts may find that the company’s trademark has been diluted and may order monetary damages, an injunction, or both. In Texas, the Federal Lanham Act is used to protect trademark owners from unfair competition practices such as dilution. The Lanham Act prohibits a party from using any symbol, word, or device that is likely to cause confusion as to the company’s origin, sponsorship, or approval of goods or services. Companies are also protected from dilution by the Texas anti-dilution statute which prohibits similar trademark use even if consumer confusion does not result. In summary, dilution of a trademark is a form of unfair competition that is illegal in Texas. Companies can pursue legal action under the Federal Lanham Act and the Texas anti-dilution statute to seek protection of their trademarks from dilution.
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