Early in my career, I worked with large companies, including a Hollywood studio and major automotive brand who spent millions of dollars annually to protect their trademarks. These firms knew that failing to enforce their rights could dilute or even forfeit their brand value.
For smaller businesses, the investment in trademark enforcement can seem out of balance. While a large beer producer can easily justify the value of an action against any third party that tries to use or register a mark even remotely close to theirs, smaller microbrewers may find that same endeavor to be a considerable expense against their bottom line. Large companies often use their resources to intimidate smaller competitors into compliance, even when there’s minimal risk of confusion.
Clearing The Deck
Big brands often “clear the deck” by ensuring no similar marks are registered. This tactic makes enforcement easier because it minimizes competition. By creating a clear and exclusive mark, they make it hard for smaller businesses to argue against claims of confusion.
Why Smaller Companies Should Care
To the smaller business, “clearing the deck” for their own brand, or defending their brand against a larger company who is aggressively protecting its brand, seems excessive. A large company that appears to be overzealous is often called a trademark “bully.”
However, it’s a crucial part of brand investment. The value of a brand is tied to its distinctiveness, recognition, and market presence. The overall strategy is to prevent any dilution of its brand.
In many cases, the small company defending its right might be right– there is no potential confusion or infringement. However, being right may not simply be enough. A small business must have a strategy and a budget for the defense of its mark. Every situation is different and there are no easy answers.
If you have questions about protecting your brand or dealing with larger competitors, reach out to a trademark attorney experienced in these tactics.