Another business using any element that signifies your company to distribute, sell or market goods/services is unfair. And it can harm your business in different ways.
Here are three ways trademark infringement can affect your business:
Confusion
Trademark infringement can cause confusion. A significant percentage of your existing and potential customers may not distinguish the other business from yours, at least not in the beginning.
For example, if you have goods at a grocery store, a customer can easily pick a product from another business using your trademark, perhaps your theme colors or slogan. Such confusion can lead to a loss of sales.
Damage to reputation
If the product the customer picked, believing it’s from your business, is not of good quality, they may lose trust.
Typically, businesses that engage in trademark infringement have low-quality or counterfeited goods. Being associated with these two qualities can significantly damage your brand reputation, which can also translate to a loss in sales.
Loss of money
Another way a business can lose money as a result of trademark infringement is when saving their reputation. This is because the steps they need to take can be costly.
For example, a company that decides to rebrand, in addition to fighting for its rights in court, will need to spend money. It may need to hire professionals to develop new ideas concerning its theme colors, slogan, logo etc. Marketing the company under the new identity will also cost money and time.
Trademark infringement can harm the customer loyalty you have worked hard to establish. Thus, if someone uses your trademark, you should act quickly. Get legal guidance to understand the steps to take to protect your business and recover the damages you may have already incurred.