Is dilution of a trademark a form of unfair competition?
Yes, dilution of a trademark is a form of unfair competition. Unfair competition law in Washington specifically prohibits action that causes “dilution of the distinctive quality of another’s mark.” Dilution of a trademark occurs when an entity uses another company’s trademark without permission to offer competing products or services. The use of another company’s trademark can lead to a decrease in the value of the trademark, and potentially even confusion among customers. Unfair competition law in Washington also prohibits “passing off,” which is the act of using a trademark that is similar to or identical to another company’s trademark. This type of dilution of a trademark is often used to deceive consumers into purchasing a product that they believe is from a particular company, but in fact is not. In order to prove that an act of unfair competition has occurred in Washington, the trademark owner must be able to show that the defendant’s use of the trademark was likely to cause consumer confusion, and that the defendant had knowledge of the trademark at the time of the infringement. If proven, the court may issue an injunction prohibiting the defendant from further infringing upon the trademark.
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