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Intellectual property

trademark infringement

What is trademark infringement?

Trademark infringement is the unauthorized use of a trademark or service mark on or in connection with goods or services in a manner that is likely to cause confusion, deception, or mistake about the source of the goods or services.

What will happen if someone sues me for trademark infringement?

A trademark owner who believes its mark is being infringed may file a lawsuit in either state court or federal court for trademark infringement, depending on the circumstances. In most cases, trademark owners choose to sue for infringement in federal court. Even when a plaintiff chooses state court, it may be possible for the defendant to have the case removed (transferred) to federal court.

If the trademark owner is able to prove infringement, available remedies may include the following:

• a court order (injunction) that the defendant stop using the accused mark;

• an order requiring the destruction or forfeiture of infringing articles;

• monetary relief, including defendant's profits, any damages sustained by the plaintiff, and the costs of the lawsuit; and

• an order that the defendant, in certain cases, pay the plaintiff’s attorney fees.

Conversely, a court may find instead that (1) you are not infringing the trademark, (2) a defense bars the plaintiff's claim(s), or (3) other reasons exist why the trademark owner is not entitled to prevail.

How do I know whether I'm infringing?

To support a trademark infringement claim in court, a plaintiff must prove that it owns a valid mark; that it has priority (its rights in the mark(s) are "senior" to the defendant's); and that the defendant's mark is likely to cause confusion in the minds of consumers about the source or sponsorship of the goods or services offered under the parties' marks.

When a plaintiff owns a federal trademark registration on the Principal Register, there is a legal presumption of the validity and ownership of the mark as well as of the exclusive right to use the mark nationwide on or in connection with the goods or services listed in the registration. These presumptions may be rebutted in the court proceedings.

Generally, the court will consider evidence addressing various factors to determine whether there is a likelihood of confusion among consumers. The key factors considered in most cases are the degree of similarity between the marks at issue and whether the parties' goods or services are sufficiently related that consumers are likely to assume (mistakenly) that they come from a common source.

Other factors that courts typically consider include how and where the parties' goods or services are advertised, marketed, and sold; the purchasing conditions; the range of prospective purchasers of the goods or services; whether there is any evidence of actual confusion caused by the allegedly infringing mark; the defendant's intent in adopting its mark; and the strength of the plaintiff's mark.

The particular factors considered in a likelihood-of-confusion determination, as well as the weighing of those factors, vary from case to case. And the amount and quality of the evidence involved can have a significant impact on the outcome of an infringement lawsuit.

In addition to claiming likelihood of confusion, a trademark owner may claim trademark "dilution," asserting that it owns a famous mark and the use of your mark diminishes the strength or value of the trademark owner's mark by "blurring" the mark's distinctiveness or "tarnishing" the mark's image by connecting it to something distasteful or objectionable—even if there is no likelihood of confusion.

In Texas, trademark infringement occurs when someone uses a trademark or service mark without authorization in a way that may cause confusion about the source of goods or services. If sued for trademark infringement, the trademark owner may file in state or federal court, and if infringement is proven, remedies can include injunctions, destruction of infringing items, monetary relief, and possibly attorney fees for the plaintiff. To determine infringement, courts assess whether there's a likelihood of consumer confusion, considering factors like mark similarity and the relatedness of goods or services. A federal trademark registration provides a presumption of validity, ownership, and exclusive nationwide use, which can be challenged in court. Courts also consider factors such as marketing, sales, actual confusion, defendant's intent, and mark strength. Trademark dilution claims can be made for famous marks, arguing that unauthorized use diminishes the mark's distinctiveness or reputation, even without consumer confusion.

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