Trademark Abandonment: Impact on Rights & Infringement

Trademark Abandonment

Understanding Trademark Rights and Abandonment

Many individuals hold a belief that trademark rights can be forfeited or lost if the trademark owner fails to address infringing uses of the mark. However, the truth is more nuanced. Courts vary in their interpretations regarding the impact of a failure to address infringements on one’s trademark rights. Some courts assert it makes no difference, while others argue it could lead to abandonment or loss of trademark rights. There’s also a middle ground where failure to address can weaken a mark but not necessarily result in total abandonment. It’s crucial to note that this issue revolves around whether not addressing one infringer affects a trademark owner’s rights concerning another infringer or the general market. It’s distinct from the doctrine of laches, which isn’t discussed here.

What Constitutes Trademark Abandonment?

Trademark abandonment occurs when a mark’s owner discontinues its use without intent to resume. Disuse for a specified period, typically three years, raises a presumption of abandonment. Additionally, actions by the owner that lead the mark to become generic can also constitute abandonment under the Lanham Act (15 U.S.C. § 1127).

Impact of Failure to Address Infringements

Courts have taken three primary approaches to the failure to address infringements:

  1. Failure to Address Doesn’t Lead to Abandonment: Some courts assert that an infringing party shouldn’t be excused simply because another infringer wasn’t pursued. This approach aims to prevent unnecessary legal battles and has been supported by various civil courts and the Trademark Trial and Appeals Board.
  2. Failure to Address Can Lead to Mark Genericization: If a trademark owner fails to act against infringers for an extended period, resulting in widespread use by competitors and consumers, it can render the mark generic. This approach, followed by courts in several states and the Trademark Trial and Appeals Board, emphasizes the significant lapse in policing leading to abandonment.
  3. Failure to Address Weakens the Mark: While not directly causing abandonment, courts in certain circuits and the Trademark Trial and Appeals Board suggest that allowing infringement weakens the association between the mark and the owner’s products or services. The more significant the infringements, the weaker the connection becomes in consumers’ minds.

Legal Action Against Infringers: A Complex Decision

There’s no straightforward answer. Trademark owners aren’t obligated to sue every infringer, but in cases of widespread violation, not taking action could significantly impact their rights. Many larger companies, investing heavily in their trademarks, tend to err on the side of caution by pursuing infringers. Analyzing the scale of infringement, frequency of use, and other factors helps in devising a brand protection strategy that safeguards rights without unnecessary legal battles.

In conclusion, while it’s important to address infringing uses, the impact on trademark rights is nuanced and multifaceted. Prudent business owners should remain vigilant, taking appropriate action when necessary, and craft a protective strategy considering various factors.