Legal Definitions - dilution (trademark)

In trademark law, dilution refers to the unauthorized use of a mark or trade name that is similar to a famous trademark, which then weakens or harms the public's perception of that famous mark. Unlike traditional trademark infringement, dilution can occur even if consumers are not confused about the source of goods or services, and even if the products or services are not in direct competition.

The core idea behind dilution protection is to safeguard the unique identity and reputation of highly distinctive and widely recognized trademarks from being eroded or damaged by others. It protects the investment a company makes in building a famous brand's distinctiveness and goodwill.

Dilution typically manifests in two main forms:

• Dilution by Blurring: This happens when the distinctiveness of a famous mark is weakened because it becomes associated with another similar mark. The unique association consumers have with the famous mark starts to fade as it's used in other contexts, making the famous mark less singular and impactful.
• Dilution by Tarnishment: This occurs when the reputation of a famous mark is harmed through its association with another similar mark or trade name that is perceived as inferior, unsavory, or inappropriate. The negative connotations of the unauthorized use reflect poorly on the famous brand.

Here are some examples to illustrate the concept of trademark dilution:

• Example 1 (Dilution by Blurring): Imagine a globally recognized luxury car manufacturer, "Silver Arrow," known for its sleek design and high performance. If a new company started selling a line of budget-friendly garden hoses under the name "Silver Arrow Hoses," even if no one would confuse the car company with the hose manufacturer, the distinctiveness of the "Silver Arrow" brand for luxury vehicles could be diluted. The unique, high-end image associated with the car brand might become less exclusive and special by its association with a common, unrelated product. The famous mark's ability to exclusively identify luxury cars would be impaired.

• Example 2 (Dilution by Tarnishment): Consider a beloved children's educational television show called "Wonderland Explorers," which has a famous, distinctive logo featuring a friendly, cartoon compass. If an adult entertainment club were to open using the name "Wonderland Escorts" and a very similar compass logo, this would likely constitute dilution by tarnishment. The association with an adult-themed business could severely damage the wholesome, family-friendly reputation of the "Wonderland Explorers" brand, even though no one would think the TV show created the club.

• Example 3 (Dilution by Blurring): A famous, highly distinctive brand of high-end athletic shoes, "VelocityStride," is known for its innovative technology and premium quality. If a small, local dog food company started selling its product under the name "VelocityStride Pet Food," using a similar font and color scheme, this could dilute the famous shoe brand. While consumers wouldn't think the shoe company makes dog food, the unique association of "VelocityStride" with cutting-edge athletic footwear would be weakened. The distinctiveness of the brand, built over years of marketing and quality products, would be blurred by its use on an unrelated, everyday item.