Trademark Infringement Penalties

Whether accidental or intentional, the consequences linked with trademark infringement are incredibly serious. Hopefully, you never find yourself in the position of being prosecuted for trademark infringement or need to pursue someone else for infringement.

However, should you find yourself in either of these situations, you’ll likely want to know the penalties involved and how to defend yourself.

In this guide, we’ll walk you through what you can expect as a consequence of trademark infringement, how to pursue the application of these penalties should your IP be infringed and where to seek help.

What Constitutes Trademark Infringement?

It is actually quite easy to avoid trademark infringement when you consider the parameters for what is viewed as infringement. You can count your trademark as being improperly used or your behaviour as infringing if:

• The trademark (image, logo or text) is deceptively similar or identical to one that is already registered.
• The trademark is too similar to one already registered in a similar category of goods and services.
• A well-known trademark is already registered in the same category, while trademarking Apple in a confectionary space may be approved, using it in Computer Hardware will not as Apple exists and it's very well known.

Examples Of Trademark Infringement

For clarification, let's consider the following examples.

1. Cola Lollies Vs Coca-Cola

If a confectionary company sells sweets labelled as ‘coca-cola’ flavoured, this could be considered infringing. Even if the Coca-Cola trademark is only registered in a beverage category, the risk of customers being deceived regarding the origin of the product is too great.

2. Selling Items Printed With A Known Trademark

Even if you do not manufacture the items in question, selling unauthorised goods printed with a known trademark such as Nike, Under Armour, Louis Vuitton or similar is a clear-cut case of trademark infringement.

3. Using A Catchy Slogan Without Consent

Have your own unique trademark but also want to use a catchy slogan to market your brand? Slogans can also be trademarked. Using a seemingly innocent phrase such as ‘just do it!’ to entice customers to contact you or purchase your goods or service could also be seen as an infringement.

Why? ‘Just Do It’ is a trademarked phrase belonging to the Nike corporation.

4. Same Same But Different

Love a particular logo, such as the Starbucks image and think you can capitalise on their success by simply altering the colour, name and image slightly? It’s different, so it's not an infringement, right? Wrong.

Even if any images or slogans are not identical and have slight variations in spelling or colour, they are still going to be considered deceptively similar. Ultimately, they may be judged as being not different enough and a penalty will be applied.

This is why it is so essential that companies and businesses always perform the proper checks on their intended branding before going public. There are several ways to check if your idea is unique or original and avoid the risk of being penalised for trademark infringement.

While we often brush off copycat behaviour under the guise of imitation being the highest form of flattery, the reality is that when it comes to business, imitation can be damaging to your reputation and your bottom line.

Penalties For Trademark Infringement

So what type of penalty for trademark infringement can you expect? The penalties can range significantly depending on the type and seriousness of the offence.

Initially, a consequence may be something as simple as sending a letter of demand in which the offending party is requested to cease and desist the usage of the trademark. If the action is not stopped, the penalties can get progressively worse.

The next step following a cease and desist request is to enter into mediation or alternative dispute resolution, if available. This can be more affordable than court action for both parties but relies on each side actively working towards a resolution. This can make it unfeasible for a business that is dealing with an unresponsive or unrepentant infringer.

Should your case proceed to court action, Australia’s Trade Marks Act 1995 and Copyright Act 1968 will be considered. These laws outline harsh penalties for trademark infringement, including acts of counterfeiting and piracy - these are all considered to be serious criminal offences.

In addition to any civil action or mediation, the court can opt to impose penalties of up to five years imprisonment and fines of up to $99,000. This means these penalties could be in addition to paying compensation to the trademark owner as well as covering all legal costs related to the case.

It would be easy to think that such harsh consequences of trademark infringement should act as a major deterrent for infringers, however, cases of trademark and Intellectual Property infringement continue to multiply.

This means that to protect your trademark you need to be more vigilant and more persistent than ever.

Benefits Of Enforcing Penalties

Of course, the most obvious benefit of pursuing trademark infringement penalties in Australia is to protect your trademark from misuse and as a result, protect your business.

It can take a lot of time and energy to consistently track down and confront infringers, however, enforcing the penalties and your rights consistently serves to benefit you in more ways than one.

Reputation

Actively quashing misuse and infringement of your trademark protects your reputation. It stops dilution and confusion regarding your brand and what is genuine or deceptive. Stop potential negative perceptions of your brand due to unauthorised use and enforce your rights.

Prevention

If you are aware of infringing products entering Australia and have had no success resolving this directly with the infringer, you can also report them to Australian Customs. They will remain on alert for these items and seize them before they enter the market.

Deterrent

Ignoring infringing behaviour or taking a relaxed approach to enforcing your rights can lead to an increase in this type of behaviour.

Conversely, if you develop a reputation as a business or company that takes a firm stance against trademark infringement, infringers will be less likely to use your trademark themselves.

Remaining vigilant and continually pursuing penalties against the infringer is one of the best ways to protect your trademark. Consistently failing to resolve these issues can lead to irreversible damage to your brand and a decrease in the value of your business.

Where To Seek Help

If you have been made aware of trademark infringement utilising your registered trademark or have been advised you have engaged in infringing behaviour, don’t panic.

At IP Guardian, we understand how stressful these discoveries can be and how overwhelming it can seem to navigate a resolution. With decades of experience as patent and trademark attorneys, our team delivers expert advice and unmatched professional support.

We are highly skilled at securing optimal outcomes for our clients, regardless of whether we are defending your rights or negotiating an accusation of infringing behaviour, our trade mark infringement attorneys can help.

In addition to this, we also support our clients to create a system that protects their intellectual property rights. From performing proper trademark checks before application to formal registration and how to monitor improper use, we can do it all.

No matter where you are in your journey as a trademarked business, our team can help you to secure your business and protect your reputation from illegal infringement. To learn more, contact our trusted attorneys today at 02 9071 0130.

Book a Consultation With a Trade Mark Attorney

Free Consultation

Barry Meskin

Registered Patent and Trade Mark Attorney with significant experience obtaining all forms of registered intellectual property. I hold a Bachelor of Science in Engineering, a Masters of Business Administration and a Masters of Intellectual Property. I’m passionate about showing my clients how they can protect their brands through trademark registrations.