A trademark plays a significant role in promoting the brand value of a business. When we think of top brands like Google, Puma, or Volkswagen, we think of the unique identifiers of the brand, such as its trademark. These marks don’t just represent the product and service of a business, but also represent the reputation of a company. A brand value is dependent on how well a business’s trademark is monitored and protected. Brand dilution refers to the erosion of a brand’s value, including the loss of customer trust and the loss of the trademark’s distinctiveness.
Understanding trademark dilution and its impact on business:
Trademark dilution is the weakening of the uniqueness of a registered mark. Trademark dilution can diminish the value of a famous mark, whereas infringement primarily focuses on creating a likelihood of confusion among customers. Trademark dilution will occur if someone uses a registered trademark or a confusingly similar mark without the consent of the owner to promote products that are not related to the mark. Dilution could weaken the distinctiveness of the mark, ultimately affecting business growth. In most cases, trademark dilution occurs with a popular trademark.
The uniqueness of a trademark helps a business stand out in the competitive business world. Brand value will help companies set a reasonable price for their products and also acquire customer trust, thereby creating a strong market position. Trademark dilution needs to be prevented in the early stages; otherwise, it could alter the public perception of your brand and reduce its market value.
Major types of trademark dilution in the UAE:
Trademark Blurring
Blurring occurs when the distinctiveness of a famous trademark is weakened due to the misuse of the mark for unrelated business, causing the famous mark to lose its uniqueness. For instance, if someone uses “DELL” as a brand name for a candy, then it would affect the uniqueness of the brand.
Trademark Tarnishment
Tarnishment is the unauthorised use of a famous trademark with products of low quality to damage its reputation. For example, if a renowned trademark like Google is used with low-quality products, it can negatively impact the brand image.
How can brand dilution affect the business in the UAE?
Brand dilution can cause financial and reputational damage to the business. Businesses may need to lower the price of their product due to the dilution of brand value, which could affect the financial stability of an organisation. Additionally, the business’s market share may decline due to a decrease in the number of loyal customers.
Key strategies to prevent trademark dilution in the UAE
In the UAE, the legal framework governing trademark dilution is defined in Federal Decree-Law No. 36 of 2021, which pertains to Trademarks. Therefore, businesses in the UAE can take legal action in the event of any potential misuse of their trademark.
Use your trademark effectively.
Businesses should use their trademarks consistently with their products and services. Choose online media to market your product with the registered trademark, and this is one of the effective strategies to prevent dilution in the digital age.
Choose a unique and strong trademark.
Ensure that you have a unique and strong trademark that is less likely to be diluted or confused with others. You can use a logo, 3D marks, or words as a trademark; choose a mark that distinguishes your business from others. A trademark should be registered to take legal action against the unauthorised use.
Trademark monitoring
Businesses should regularly monitor their mark to identify any unauthorised usage of the mark. Constantly monitor the marketplace and social media platforms to find out any unauthorised usage of the mark. Businesses should take legal action in the early stages in case of any unauthorised use to protect their brand identity.
International trademark registration
If your business is involved in international trade, you must register it in the country where you plan to conduct business. The UAE is a member of several international treaties, including the Madrid Protocol and the Paris Convention. Filing your trademark under the Madrid Protocol will allow you to obtain international trademark protection.
Partner with the best trademark agent to secure your brand from dilution:
Businesses must actively prevent misuse of their trademarks and respond swiftly to any unauthorised use. Failure to take appropriate legal measures may damage your brand reputation, making it difficult to restore your business identity and regain customer trust. Trademark monitoring is necessary to identify any unauthorised use, and this can be a complex process. Jitendra Intellectual Property can help you with that. Our professionals will help you with trademark monitoring and enforcement.
