Legal Definitions - Dilution Act

The Federal Trademark Dilution Act is a United States law specifically designed to protect the distinctiveness and reputation of famous trademarks. Unlike traditional trademark infringement, which focuses on preventing consumers from being confused about the source of goods or services, this Act addresses situations where a famous mark's unique identity is weakened or its reputation is harmed, even if consumers are not confused about who is offering the product or service.

The Act recognizes two primary forms of dilution:

• Dilution by Blurring: This occurs when an unauthorized use of a famous mark impairs the distinctiveness of the mark. It makes the famous mark less unique and less exclusively associated with its original owner, even if the goods or services are completely different. The mark's ability to identify and distinguish its owner's goods or services is weakened.
• Dilution by Tarnishment: This happens when an unauthorized use of a famous mark harms the reputation of the mark. This often involves associating the famous mark with products or services of poor quality, or with unsavory, scandalous, or objectionable contexts, thereby damaging the positive image and goodwill associated with the famous brand.

To qualify for protection under this Act, a trademark must be considered "famous," meaning it is widely recognized by the general consuming public.

Examples:

• Example 1 (Dilution by Blurring): Imagine a small, local bakery opens under the name "Nike Bakes," selling specialty pastries and cakes. Even though Nike does not sell baked goods and consumers are unlikely to think Nike itself is making the pastries, the use of "Nike" for an unrelated product could dilute the distinctiveness of the famous "Nike" trademark. The unique association of "Nike" with athletic apparel and footwear might be weakened as it starts to be associated with baked goods, making the mark less singular in the public's mind. The Federal Trademark Dilution Act would allow Nike to take action to prevent this blurring of its famous mark.

• Example 2 (Dilution by Tarnishment): Suppose a company launches a line of low-quality, cheaply made cleaning products under the brand name "Rolls-Royce Cleaners" and uses a logo that mimics the famous Rolls-Royce emblem. This unauthorized use would likely constitute dilution by tarnishment. The association of the prestigious, high-quality "Rolls-Royce" brand with inferior cleaning supplies could severely damage its reputation for luxury and excellence, even if no one believes Rolls-Royce actually manufactures the cleaners. The Federal Trademark Dilution Act provides a legal remedy for Rolls-Royce to protect its brand from such damaging associations.

• Example 3 (Dilution by Blurring - another context): Consider a new online streaming service that offers obscure, independent films and names itself "Netflix IndieFlix," using a similar red and white color scheme to the famous Netflix brand. While the service might target a niche audience different from Netflix's mainstream offerings, the unauthorized use of a name so similar to "Netflix" could dilute the distinctiveness of the established "Netflix" brand. The unique association of "Netflix" with a broad range of streaming content could be weakened by its unauthorized use in a more specialized context, making the original mark less unique. The Federal Trademark Dilution Act would enable Netflix to prevent this unauthorized use and preserve the singular identity of its brand.