Enriching Life Through Innovative Ideas SM

What is a diluted brand?

Branding is an extremely pivotal contributing component of success for any business. Many commercials, for instance, are not even designed to sell products, but instead to create brand awareness. This way, when a consumer decides that they want to buy a certain type of product, the company with the captivating commercial will be the first one they think of.

A diluted brand is a brand that has been stretched too thin, for lack of better words. This occurs when a company is unable to account for all supporting aspects of multiple brands, so overall consumer value in the core brand is lost.

The same thing can happen with intellectual property infringements. For example, a trademark is something that a company uses to build up its brands’ reputation and to influence how the company views the brand. If someone else illegally uses that trademark, it then dilutes those branding efforts. The public could then very well view the company differently, because of the counterfeit products being produced.

One would think that the public wouldn’t lose respect for the authentic brand, but most people can’t distinguish fake products from the real ones. Furthermore, if the public can’t distinguish this property, they in turn question the real ones. It’s very possible someone could come across a genuine product but be less likely to purchase it due to these concerns.

All of this chaos, unfortunately, can undermine the branding efforts that your company has diligently worked on. If this happens to you, be sure to become aware of what options you have and what legal action you can take to protect your brand and your company.

Findlaw Blog Network