Dilution of Trademark

How does Dilution of Trademark in India impact Businesses?

Online Legal India LogoBy Online Legal India Published On 25 Nov 2021 Category Trademark

With newer businesses coming up every other day, it has become difficult for the creation of unique brands. People find it difficult to give original names to their business and often end up using the trademark of other brands to promote their business. This leads to the raising of Trademark opposition by the reputed brands.

Because of the difficulty in finding original brand names, Trademark Dilution in India has emerged as a net to fall back on by the local sellers. To prevent this there have been various efforts taken by the government to curb such practices.

What is Dilution of Trademark?

Trademark dilution is an act where the trademark of a brand is misused in ways that blur or tarnish the image of the reputed brand. It is an unethical means of using the trademark of a different individual to promote one’s own business.

A trademark dilution is usually aimed at creating confusion in the mind of the customer in terms of relating the brand name to the goods and services. It often leads to a linking of the reputed brand with that of the goods and services of the individual using a diluted trademark.

How does Dilution of Trademark occur?

Trademark dilution in India is often prevalent in the local markets where it is easy to get away from getting caught. It is usually when a person uses a mark that is identical or similar to the registered trademark. This trademark is already registered and has a reputation in India.

The use of the diluted trademark is on different goods or services than those covered by the registration. To prevent such practices the Doctrine of Dilution of Trademarks has been formulated to help the cause.

How can Trademark Dilution be prevented?

There is a need for the inclusion of the clause to help address the concept of trademark Dilution and include it in the Trademark Law in India. The concept might not be one that is consumer-centric but it has huge implications on the objections raised on the product by the public.

There is no requirement of a new law as an amendment to the Trade Marks Act, 1999 will suffice. To prevent the dilution as it is easy to get confused with a local brand the requirement is to address the provision covering only the famous brands. This will also help reduce the objections raised on the dilution of the trademark of reputed brands.

Section 24 must be amended to change the scope of the provision by not including all marks with reputation but only covering famous marks, thereby excluding marks that are simply ‘well-known’. Criteria to be considered to determine whether or not a mark is famous, such as those criteria set out in the TDRA can be adopted.

This will help in keeping track of the brands and their business and help prevent the dilution of such brands in the local markets and preserve their reputation. This will help build better trust among the customer and the sellers.

Conclusion

Trademark Dilution has become a cause of concern as more and more cases of dilution are reported. To help prevent such occurrences the Doctrine of dilution of Trademarks has been formulated by the government. It is aimed at protecting the reputed brands from being tarnished in the name of diluted trademark companies.


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