What is the scope of the dilution of trademark theory?
The scope of the dilution of trademark theory is a legal concept that applies in the state of California under the Unfair Competition Law. The dilution of trademark theory seeks to protect the distinctiveness of a trademark by preventing its misuse or unauthorized use. Dilution of a trademark can occur in two ways: by blurring, which is when a trademark is used in a way that weakens its ability to uniquely identify and differentiate a product, and by tarnishment, which is when a trademark is used in a way that harms the reputation of the trademark owner or the associated product or service. Under California law, dilution can occur even in the absence of any actual confusion or economic harm to the trademark owner. The trademark owner can bring a cause of action for dilution when a third party’s use of the trademark or a confusingly similar mark creates a likelihood of dilution of the trademark’s distinctive qualities. The standard varies slightly depending on whether the trademark is famous or not, but generally includes a likelihood that the defendant’s use of the mark will diminish the capacity of the plaintiff’s mark to identify and distinguish its goods and services. California courts have also held that dilution can occur if the defendant’s use of the trademark creates a likelihood of weakening the association or connection that the trademark owner’s goods and services have acquired in the minds of consumers.
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