More time at the drawing board can mean smoother sailing for your company
Your company is the new kid on the block. Every year, you are taking more and more market share. The Big Guys might not be scared of you yet, but they should be because you’re coming for them.
Today we are talking about a common pitfall that up-and-coming businesses fall victim to. Popular advice tells you to just run your race. It’s become sexy to say things like “we never think about our competition” or “we are only competing against ourselves”.
That’s a nice idea…until it lands you in a trademark lawsuit.
Today we’re talking about why you should pay at least some attention to what your competitors are doing and why that can help you stay out of trademark trouble. Trademark lawsuits happen when two businesses are using confusingly similar names to sell the same products or services.
Here’s a reality check that other people aren’t telling you: the only way to pick a unique product name that no one else is using . . . is to know which names your competitors are already using.
Case study: too close for comfort
Forest River, Inc. is an Indiana company that manufactures recreational vehicles, trailers and commercial vehicles. The company is owned by none other than Berkshire Hathaway (Warren Buffet’s company) and is a major player in the industry. Forest River has a line of travel trailers called Della Terra.
inTech Trailers Inc. is also an Indiana company and they also sell trailers. Until recently, inTech had a line of travel trailers called Terra. According to court documents, the same graphics company that designed Forest River’s Della Terra trademark also designed inTech’s Terra trademark.
In 2021, Forest River sued inTech Trailers Inc. for trademark infringement. Forest River won and the court ordered inTech to pay over $7 million.
It pays to be original
As a trademark lawyer, I often encounter clients who want to use trademarks that are similar to names already being used by their competitors. Business owners and branding professionals assume that as long as it isn’t exactly the same competitor product names, it should be good. Unfortunately, this is not how trademark law works.
I should clarify here that I’m not taking issue with using the typical category words that are generic to a given industry. It’s fine for flower shops to include the word “florist” in their brand name, for investment companies to call themselves a “firm”, and for educational institutions to pick a name that includes the word “school”. These generic category words are generally fine to include in a trademark, if they are combined with other unique terms. For example, Harvard University and Columbia University both use the term “university”, but we know which is which because of the additional, more distinctive terms in their names.
The issue is when you and your competitor are both using the same unique, distinctive term. This is the situation where I typically encourage clients to pick a different name. Trust me: the last thing you want draining money from your bank account is a nasty trademark lawsuit. Going back to the drawing board for a new name is 100 times less painful than slogging your way through the courts.
Run your race…but look around once in a while
I’m not saying that every aspect of your branding should be dictated by what your competitors are doing. What I am saying is that having a basic knowledge of the product names of your direct competitors is helpful information that can potentially keep you out of trouble. Choosing unique and original names may require a bit more brainstorming, but it’s a time investment with clear benefits.
Thanks for reading the Bevel Law Blog! While this information is hopefully helpful to you, nothing in this blog is intended to be legal advice. Always consult a lawyer before making any legal decisions based on topics in this blog.
Ready to secure your intellectual property? Book a call today at bevellaw.com/call.
Comentários