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What is a Trademark
A registered trademark is “any word, name, symbol or device that identifies and distinguishes the source of the goods of one party from those of others.” It could even be a sound, a scent, or a color. As an example, if we were to think about the trademark of a well-known fast food chain, it includes a word (McDonald's), logo (the golden "M" shaped arches), and slogan (I’m lovin’ it).
Trademark vs. Service Mark
A trademark can be for products (trademarks) or services (service marks). Trademarks are used to identify physical goods or products, for example, the logo found on a series of luxury watches. Service marks are used to identify services, like Hilton's 'Hilton Honors' program, known for rewarding guest loyalty.
Key functions of a trademark include:
- Identifying the source of the goods.
- Providing legal protection for your brand.
- Assisting in the prevention of counterfeiting and fraud.
Common Misunderstanding
Many business owners believe that owning a trademark grants exclusive rights to a specific word or phrase and that you can prevent others from using that word or phrase. This is partially true. Trademark rights are limited to the specific use of that word or phrase in relation to your products and service.
Imagine someone owns the trademark "SilverStar" for a line of kitchen appliances. This trademark is used to distinguish your products in the home goods market. If others want to use "SilverStar" for a chain of fitness gyms, it may be permissible because the industries of home goods and fitness services are very different. The chances of consumer confusion between the two are unlikely.
The Power of Famous Trademarks
Famous trademarks carry a weight of recognition and trust. Using a name that is identical or highly similar to a famous and distinctive trademark like "McDonald's" for an unrelated industry is usually not allowed. Famous trademarks enjoy broader protection due to their well-known status and potential brand value dilution. For example, using the name "McDonald's Car Wash" could mislead consumers into thinking there is an association with the McDonald's restaurant chain and may be considered trademark infringement.
