Understanding Your Rights When a Competitor Is Using a Similar Trademark

If another business is using similar branding materials as your company, you need to be aware of your legal options. Trademarks are considered intellectual property and, as such, are protected by federal and state law. Trademark infringement can weaken brand recognition and confuse customers, but it doesn’t always require a lawsuit. Understanding how trademark infringement works and how you can resolve these disputes can help you determine your next steps.

What Qualifies as Trademark Infringement?

The United States Patent and Trademark Office defines trademark infringement as “the unauthorized use of a trademark or service mark on or in connection with goods and/or services in a manner that is likely to cause confusion, deception, or mistake about the source of the goods and/or services.” But what does this mean for businesses in real life who are trying to determine if they have a lawsuit against a competitor? 

There are three key considerations. The first and generally easiest is whether the competitor was authorized to use the trademark. If your company is considering suing, the answer is likely no. 

The second is whether the trademark was used in connection with goods or services. For example, if the competitor only uses it descriptively, such as in a blog post, it wouldn’t qualify as trademark infringement because it’s not used for commercial purposes. However, there may be other legal avenues your business could take to limit this kind of use.

The third consideration is whether the trademark is being used in a manner that is likely to cause confusion. If your company provides tech services to clients and a restaurant opens using a similar name, this may not be trademark infringement because customers aren’t likely to be confused. After all, the businesses operate in different industries.

It isn’t always easy to determine whether another business’s actions qualify as trademark infringement, but an attorney can help you identify any potential misuse and take appropriate action.

Preliminary Steps to Take If a Competitor Is Using a Similar Trademark

It’s normal to be upset and want to take action quickly if another business starts using a similar name or logo, but a lawsuit isn’t always the right path. Litigation can be time-consuming and take your focus away from where it should be: building your business. An attorney can help you determine preliminary steps that can help you avoid a lawsuit while protecting your intellectual property rights. 

When you become aware that a competitor is infringing on your trademark, the first thing to do is to start documenting. Gather evidence that shows when you first started using your trademark and your registration. It’s also a good idea to document any potential instances of confusion or lost business, such as getting phone calls for the other company. 

Sending a formal cease-and-desist letter to the competitor may be enough to get them to stop using your mark. The owner may not be aware of your trademarks, and this can offer them a simple way to clear up any confusion. Legal action may be necessary if they don’t comply or claim that they had the trademark first.

Is It Possible to Avoid a Lawsuit?

While it’s not always possible to avoid a lawsuit, many disputes can be resolved without business litigation. As mentioned above, your attorney sending a cease-and-desist letter may stop using the trademark. If your business hasn’t suffered significant losses, that may be enough to move forward. If not, the next step may be trying to negotiate the dispute, either informally or through mediation. These strategies can save you the time and cost involved in a lawsuit while still getting you a favorable end result. Avoiding a lawsuit can also protect your brand image and reputation and potentially preserve essential business relationships. 

What Does the Process of Suing for Trademark Infringement Involve?

If a competitor isn’t open to negotiation or reevaluating its branding, a lawsuit for trademark infringement may be necessary. Depending on where your trademark is registered, the lawsuit may need to be filed in federal court. The burden is on the plaintiff to prove ownership and use of the trademark, the similarity of the competitor’s mark, and that the plaintiff’s business suffered damages as a result. An attorney can help you file the appropriate paperwork and collect and present evidence to support your claim. 

Many of these lawsuits are settled out of court. However, it may also be possible for you to get an injunction against the competitor, be awarded damages for your losses, and potentially even get compensation for your legal fees if you win the suit.

Protecting Your Intellectual Property Rights

Decreasing the risk of a competitor using your branding materials or needing to file a lawsuit starts with taking steps to protect your intellectual property. This includes registering your trademarks with the United States Patent and Trademark Office and using the appropriate ™ marks to ensure that others are aware you own the trademark. It’s also essential to continue to monitor new trademark applications to ensure a competitor isn’t applying for a mark that’s similar to yours. It’s much easier to file a complaint against a trademark that’s still in the application stages than it is to sue a competitor after the fact. 

If a competitor is using your trademark or marks that are similar enough to be confusing to customers and clients within the same industry, an attorney can help you determine if you need to take legal action to protect your brand. Start by calling our office at 248-609-1718 to speak to a member of the Kendal Law Group PC team.