In 2024, Louisville U.S. Customs and Border Protection seized $18 million in counterfeit jewelry and watches for trademark violations. Meanwhile, street vendors are hawking “Louis Vuitton” bags that have never been within a thousand miles of France.
From Fortune 500 companies to local businesses, businesses face a constant battle against copycats. The Trademark Trial and Appeal Board (TTAB) handled over 8000 trademark decisions in 2023, yet most violations never make it to a judge: some businesses spot the fraud too late, while others can’t afford the legal fees to fight back.
Every knockoff product might be a lost sale, and every poor-quality replica damages trust in your brand. For business owners, understanding how trademark infringement works is an essential step in protecting your brand.
What is Trademark Infringement?
Trademark infringement occurs when a party uses an asset, such as a name, logo, or tagline, that is identical or confusingly similar to a registered trademark without permission.
There’s also trademark dilution, which is slightly different from infringement. Dilution happens when someone weakens a famous trademark’s uniqueness. If someone opened “Rolex Tire Shop,” Rolex could stop them. Not because anyone would think they’re buying watches there, but because it chips away at Rolex’s luxury brand status.
Trademark infringement is everywhere in our world: Someone sells knockoff Nikes at the flea market. A new coffee shop opens with an almost-but-not-quite Starbucks logo. A YouTuber uses the McDonald’s jingle without permission. Brands have to fight back.
Common Examples of Trademark Infringement
Major brands fight trademark battles constantly. These five cases show how companies protect their names, logos, and designs. Each reveals different aspects of trademark law and what courts consider when ruling on these disputes.
3M vs. 3N (A Similar Brand Name Case)
When Changzhou Huawei Advanced Material Co Ltd began using “3N” on their products, 3M filed suit claiming trademark infringement. The case centered on the deliberate similarity of the marks and potential customer confusion. 3M demonstrated how the defendant had leveraged their established reputation to acquire market share. The case underscored how even minor alterations to famous marks can constitute infringement.
Adidas vs. Payless Shoes (Design Controversy)
In a landmark case, Adidas sued Payless over its use of two and four stripes on athletic footwear. After investing in establishing its three-stripe mark for over 50 years, Adidas argued that Payless’s similar designs diluted its trademark and confused consumers. The 2008 verdict awarded Adidas $305 million.
Louis Vuitton’s Anti-Counterfeiting Efforts
Louis Vuitton is one of the most imitated designer brands in the world. Their legal team works with police to raid manufacturing sites and shut down distribution networks. The company’s aggressive approach has led to major seizures and helped strengthen legal protections for luxury brands.
Starbucks vs. Starpreya (Logo Infringement)
Both Starbucks and Elpreya (operating as Starpreya) opened their first Korean stores in 1999. Starbucks challenged Starpreya’s logo, claiming trademark infringement. However, Korean courts sided with the local business, noting Starbucks’s limited presence in Korea at that time. After many appeals by Starbucks, the final ruling allowed Starpreya to keep using its logo.
How to Identify Trademark Infringement
Courts look at several key factors when deciding trademark cases. The most basic test asks: would regular customers get confused between the two marks? But there’s more to it than that.
Likelihood of Confusion Test
Courts check whether regular consumers might mistake one brand for another or think they’re connected. They look at the original mark’s strength, past mix-ups between brands, and how carefully people shop for these products.
Similarity Assessment
Courts analyze these key areas:
- Visual similarities: Colors, designs, fonts, layouts, and overall appearance
- Phonetic similarities: How names sound when spoken, like “Kleenex” vs “Cleanex”
- Conceptual similarities: The underlying meaning or message, like two companies using a lion to represent strength
Market Overlap
Product relationship in the marketplace matters heavily. Courts examine:
- Whether products compete directly
- Where they’re sold
- Target customers
- Price points
- Marketing channels
If two brands have different geographic markets, different customer segments and different purposes, it’ll be much harder to demonstrate trademark infringement.
Intent
If a company deliberately copies another’s trademark to profit from confusion, that’s strong evidence of infringement. Accidental similarities between companies that never knew about each other might be treated less severely.
Consumer Perception
How customers view and interact with these products shapes the final decision. Courts consider:
- Shopping habits for these items
- Level of customer attention (quick purchases vs careful research)
- Target market sophistication
- Evidence of actual confusion between brands
In all, courts take a range of factors into account to make a nuanced assessment of whether a trademark has been infringed upon.
How to Protect Against Trademark Infringement
Protecting your brand assets doesn’t happen overnight, and it doesn’t stop once your trademark application is approved. Just like brand building, brand protection happens all day, every day.
Register your mark
Start by registering with the USPTO. Before filing, search across federal and state databases to avoid conflicts. Also, file in all relevant product categories (called classes) that apply to your business. A coffee shop selling branded mugs needs protection in both retail and merchandise classes.
Trademark monitoring
Keep your eyes open for:
- Similar names or logos popping up in your industry
- Counterfeit products on store shelves or online
- Look-alike brands in advertising
- Suspicious domain names and social media accounts
Many companies use monitoring services that scan databases and marketplaces automatically.
Build your evidence file
Save everything that shows how you use your trademark:
- Sales records
- Marketing materials
- Customer feedback
- Website archives
- Product packaging
- Business documents
These documents demonstrate the strength of your brand and the continued use of your trademark in commerce.
Send cease and desist letters
When you spot infringement, start with a formal letter. Have a lawyer write it, they know the right language to use. The letter should:
- State your trademark rights
- Point out the specific infringement
- Request they stop
- Set a deadline
- Outline potential legal action
Take legal action
If warning letters don’t work, you have several enforcement options. You can file an opposition with the USPTO, take the case to federal court, or work with customs to block counterfeit imports. The goal is acting decisively once you’ve determined that someone is infringing on your rights.
Secure global protection
A US trademark registration only covers domestic business. If you operate internationally, file for protection in each relevant country. The Madrid Protocol can simplify this process by letting you file in multiple countries simultaneously.
How to Avoid Trademark Infringement
Protecting your trademarked assets from infringement is vital, but it’s also important that your own brand assets don’t stray into anyone else’s territory. With over 5 million new businesses opening in the United States each year, it takes more work than ever to build a unique brand identity.
Research before you choose
Don’t fall in love with a name until you’ve checked if it’s available. Search the USPTO database, state registries, and industry directories. Look beyond exact matches – similar names in related fields could block your use. Our Trademark Research package provides a comprehensive search for potential issues.
Do your homework early
Before spending money on logos, packaging, or marketing, verify that your brand won’t infringe on anyone’s intellectual property. Check domain names, social media handles, and business registrations. Document your research process, as it shows good faith if questions arise later.
Check your brand regularly
Set up a schedule to review your branding materials. Are you using trademarks correctly? Have competitors moved into similar territory? Ensure your marketing team knows proper trademark usage, including when to use the ® and ™ symbols.
Partner with legal experts
A trademark attorney can spot issues before they become problems. They’ll help navigate USPTO filings and advise on risk levels. Yes, legal help costs money, but fixing trademark problems costs way more.
Follow clear guidelines
Create rules for your team about brand usage. Everyone should know:
- How to properly display your marks
- When to use trademark symbols
- What changes need legal review
- Who to alert about possible infringement
Keep these guidelines current and make sure new employees get trained on them.
When Can You Use a Trademark Without Permission?
Trademark owners have strong legal rights, but they’re not unlimited. The law recognizes that businesses and individuals sometimes need to use others’ trademarks legitimately. From car dealers advertising their brands to critics reviewing products, several exceptions allow trademark use without permission.
Fair use in commentary
Reviews, discussions, and critiques necessarily involve trademarked names. This means that journalists, reviewers and anyone writing about a brand can use trademarked assets without issue.
Nominative use
Sometimes, using another’s trademark is unavoidable. An auto repair shop specializing in BMWs needs to say “BMW” to explain their services. A store selling Nike shoes must use “Nike” to tell customers what they offer. This necessary use is called nominative use, and courts protect it.
A perfect example landed in court when a Lexus dealership used domain names containing “Lexus.” Judges ruled in the dealer’s favor despite the car manufacturer’s lawsuit. As long as you truthfully describe your connection to a trademarked product or service and use only what’s necessary, you are likely on solid legal ground.
Descriptive fair use
You can use words that happen to be trademarked if you’re using them in their ordinary, descriptive sense. For example, a furniture store may be able to advertise that their mattresses help customers have sweet dreams, even if someone owns “Sweet Dreams” as a trademark for bedding.
Parody and criticism
The First Amendment protects your right to use trademarks in parodies or criticism. Courts have repeatedly upheld this right, though there’s a crucial distinction. That is, your parody must comment on the trademark owner itself, not just use their mark to sell your own products.
The landmark case of 2 Live Crew’s parody of “Oh, Pretty Woman” established that parody counts as fair use and set a precedent allowing creative works to reference trademarked material for commentary or criticism.
Geographic limitations
If someone has only registered their trademark in certain states or regions, you can use a similar mark in areas where they haven’t established rights. But be careful, as this gets complicated fast with online business.
Industry differences
Trademark rights are generally limited to specific industries or classes of goods. That’s why Delta Airlines and Delta Faucets can coexist. But famous marks get broader protection, so tread carefully with well-known brands.
While these exceptions exist, they’re not a free pass. Getting it wrong can lead to costly legal battles, so talk to a trademark attorney first when in doubt.w employees get trained on them.
Wrapping Up
Trademark infringement can derail a business, but prevention beats litigation every time. To stay on the right side of trademark law, start with a proper search before you invest in your brand. Our trademark research tool helps spot potential conflicts early, saving you from costly legal battles. Take the first step to protect your business – run a comprehensive search with trademark experts here.
