Trademark Disputes: Why They Arise and How to Navigate Them
Trademarks are more than just symbols or names — they are the identity of a business. A trademark helps consumers distinguish the goods or services of one trader from another and plays a crucial role in building brand value and trust.
In India, trademark rights are governed by the Trademarks Act, 1999, which grants the proprietor exclusive rights over the use of the mark in relation to specific goods or services. Despite statutory protection, trademark disputes are common. Understanding why such conflicts arise and how to legally deal with them is crucial for every business owner, startup founder, or creative entrepreneur.
What Is a Trademark?
A trademark is a mark that can be represented graphically and is capable of distinguishing the goods or services of one person from those of others. This includes:
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Names
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Logos
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Slogans
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Shapes
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Packaging
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Sounds
To be protected, the mark must be distinctive and not deceptively similar to any existing mark.
Why Do Trademark Disputes Arise?
Trademark disputes can emerge due to a variety of reasons:
1. Use of Similar or Identical Marks
The most frequent dispute arises when two businesses use deceptively similar marks. This creates confusion in the minds of the consumers and can dilute the brand’s value. If one of the marks is registered, the use of a similar mark by another can amount to infringement.
2. Conflict Between Prior Use and Registration
In Indian law, prior use carries significant weight. Even if a party registers a trademark, if another party can prove prior continuous use of a similar or identical mark, the latter may have superior rights. This often leads to disputes where small businesses are forced to defend their unregistered yet long-used brand names.
3. Bad Faith Registration
Some entities register a popular or well-known mark with no intention of using it legitimately, hoping instead to sell it or block competitors. This is known as bad faith registration and can be challenged in legal proceedings.
4. Trademark Dilution
Dilution happens when the uniqueness of a famous mark is eroded by its unauthorised use in unrelated fields. Even if there’s no confusion, the mere association with a different product or service can tarnish a brand’s identity.
5. Cross-Border and Territorial Issues
Trademarks are territorial. A brand registered and well-known in one country may not be protected in another unless it is registered there as well. Global expansion often leads to trademark disputes in jurisdictions where the mark was not preemptively registered.
How to Handle Trademark Disputes
1. Pre-Emptive Measures
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Trademark Search: Before selecting a brand name, conduct a comprehensive trademark search to ensure it’s not already in use.
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Trademark Registration: Registration strengthens your legal position and enables enforcement through statutory rights.
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Trademark Watch Services: These services notify you if someone applies for a similar mark, allowing timely opposition.
2. Responding to Infringement
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Cease and Desist Notices: This is often the first step to inform the infringer about the violation and seek an amicable resolution.
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Civil Lawsuit: If the dispute is not resolved, a civil suit can be filed for infringement or passing off, seeking remedies such as injunction, damages, or an account of profits.
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Rectification Petition: A party can request the removal or amendment of a wrongfully registered mark from the Trademark Register.
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Opposition Proceedings: If a similar trademark application is published in the Trade Marks Journal, one can oppose it within the prescribed time frame.
What If Your Mark Is Unregistered?
Even if your mark is not registered, Indian law allows you to protect your brand through the common law action of passing off. This requires showing that:
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You have built a reputation and goodwill under the mark,
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The defendant misrepresented their goods or services as yours, and
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This caused damage to your brand.
Noteworthy Cases
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Cadila Healthcare Ltd v Cadila Pharmaceuticals Ltd (2001): The Supreme Court laid down factors for determining deceptive similarity between trademarks, emphasizing phonetic and structural resemblance.
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Whirlpool Corporation v N.R. Dongre (1996): Recognized trans-border reputation of foreign brands, even without a local market presence.
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DM Entertainment v Baby Gift House (2004): Protected celebrity personality trademarks, illustrating how unregistered but distinctive marks can still enjoy protection under passing off.
These cases reinforce the view that both registered and unregistered trademarks enjoy judicial protection when used in good faith and when they carry significant goodwill.
Final Thoughts: Why Trademark Protection Is Vital
Trademarks are invaluable assets. They represent years of trust, quality, and recognition in the eyes of consumers. But that value can quickly erode without adequate legal safeguards. Registering your trademark doesn’t just grant you legal rights — it acts as a business strategy, helping you protect your market share and preventing others from riding on your goodwill.
Trademark disputes can be financially draining and reputationally damaging. The cost of litigation and business uncertainty can far outweigh the relatively small expense and effort involved in registering and protecting a mark early.
Whether you are a startup launching your first product or an established enterprise expanding your portfolio, trademark protection is a cornerstone of brand integrity. Being proactive about it not only deters infringement but also enhances your brand’s commercial value in licensing, franchising, and investment negotiations.
In today’s competitive market, your brand is your voice — make sure it’s protected.
Article written by: Aryan Pujari
1st Year LLM (IPR AND TECHNOLOGY LAW)
JINDAL GLOBAL UNIVERSITY