What is the scope of trademark dilution?
Trademark dilution is an issue related to unfair competition law in California. It is when the value of someone’s trademark is decreased by the unauthorized use of the trademark. A trademark is a recognizable sign, symbol, phrase, or design that distinguishes a product or service from other offerings. When a trademark is diluted, its value is reduced because it’s not perceived as being unique, original, or one-of-a-kind. Under California law, trademark dilution includes any use that “impairs the distinctiveness” of the trademark. This could include unauthorized uses of the mark on products, advertising, websites, or merchandising materials. It also includes uses of the trademark in a way that could cause consumer confusion or the blurring of the trademark’s reputation. Trademark dilution is a serious problem because it undermines the value of a company’s products and services. Companies have invested significantly in building up their trademark equity. When that equity is diluted, it has a negative impact on the company’s reputation and profitability. The scope of trademark dilution is wide, as California law attempts to protect a trademark from all unauthorized uses. It’s important for companies to be aware of the law and take steps to protect their marks from dilution. Companies should monitor the market and take aggressive action when they find instances of dilution.
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