Trademarks are not only logos or names. A trademark is an important part of a company’s identity. Trademarks represent customer values, trust and loyalty. If another company uses the same or a similar trademark as the owner without the owner’s consent, it may damage the integrity of the trademark.
In India, there are two types of trademark misuse: Trademark Infringement and Trademark Dilution. Both types of misuse provide protection under Indian law, but provide protection under different legal theories, and the type of injury or damage suffered by the trademark owner is different.
Trademark Infringement occurs when consumers are confused as to the source of a product/service due to the use of a similar trademark by another party. Trademark Dilution protects the brand owner by providing protection against the use of its trademark even in different industries by a third party, if the third party’s use will serve to dilute the reputation or distinctiveness of the trademark.
What is Trademark Infringement?
When someone else uses a mark that looks like or is very close to a registered trademark owned by someone else (a ‘third party’) to sell similar products or services, this is deemed to be trademark infringement. One of the most important concepts in trademark infringement is ‘likelihood of confusion’. This means that the average consumer will think that a product or service being sold by a third party is either produced by or associated with the company that owns the registered trademark.
In India, Sections 28 and 29 of the Trade Marks Act, 1999 provide exclusive rights to registered trademark holders and specify what constitutes trademark infringement. These sections protect registered trademarks based on visual similarity, phonetic similarity, and conceptual similarity that may mislead a consumer or create an association between the third party and the registered trademark.
Implications of Infringement
- Customers may purchase the wrong product, believing it belongs to the reputed brand.
- The original owner may suffer financial losses due to wrongful association or diverted sales.
- The authenticity and goodwill of the real brand may be negatively affected.
Example:
A clothing brand using the name “Adibas” with a similar three-stripe logo would likely be considered infringing upon “Adidas”, as consumers may mistakenly assume the products are genuine.
Thus, infringement directly attacks the brand’s identity in the marketplace and results in confusion-related harm.
What is Trademark Dilution?
Trademark dilution concerns itself with preventing the weakening of a famous or well-known mark due to unauthorised use, even when the goods and services are entirely unrelated.
The key idea behind dilution is that some trademarks enjoy such strong recognition and uniqueness that their value extends beyond specific products or sectors. Misuse of such marks even without confusion can impair their distinctive character or damage their reputation.
Dilution is recognised under Section 29(4) of the Trade Marks Act, 1999, and is available only for well-known or highly reputed trademarks.
Types of Dilution
1. Dilution by Blurring
- This occurs when the uniqueness or exclusivity of a mark is weakened by its association with unrelated goods or services.
- Example: Using “Taj Mahal” for a line of electronics may blur the identity of the iconic heritage and hospitality brand.
2. Dilution by Tarnishment
- This happens when a mark’s reputation is harmed due to its association with objectionable, harmful, or inferior products.
- Example: Using a luxury fashion brand’s name in connection with adult content or low-quality goods.
Unlike infringement, dilution does not require proof of:
- Consumer confusion
- Competitive harm
- Similar product category
It is sufficient to show that such use deteriorates brand value.
Why the Distinction Matters?
Many businesses incorrectly assume that any unauthorised use of their brand amounts to infringement. However, remedies and enforcement strategies differ significantly.
While infringement protects brands in the context of marketplace rivalry, dilution preserves the brand’s overall prestige and emotional value built over years of investment and consumer recognition.
For premium or globally popular brands, dilution is arguably a greater threat because reputational harm can occur even without market substitution.
Key Differences – Trademark Infringement Vs Trademark Dilution
| Parameter | Trademark Infringement | Trademark Dilution |
| Goods/Services | Must be similar or related | Can be completely unrelated |
| Consumer Confusion | Mandatory to prove | Not required |
| Status of Mark | Must be registered | Must be well-known/reputed |
| Type of Harm | Market loss, confusion | Loss of uniqueness or reputation |
| Basis of Protection | Competition and consumer protection | Brand prestige and distinctiveness |
| Legal Provision | Section 29(1)-(3) | Section 29(4) |
| Scope | Wider applicability | Limited to strong and reputable marks |
This comparison highlights that dilution offers broader protection to iconic brands — even outside their traditional business categories.
Indian Legal Perspective: Examples from Marketplace Reality
Indian courts have recognised dilution in cases involving globally known brands. Some notable observations include:
- Famous trademarks possess inherent association value that must not be eroded through misuse.
- Even if consumers are not confused, the reputation attached to such marks can still be harmed.
For instance, courts have restrained unauthorised use of well-known names like TATA, Whirlpool, Infosys, BMW, and Bata across unrelated sectors.
Similarly, infringement has been widely enforced where phonetic or visual similarity misleads consumers in everyday products like pharmaceuticals, apparel and FMCG goods — sectors where confusion can have serious consequences.
Thus, both legal concepts work together to strengthen India’s trademark enforcement ecosystem.
When Legal Action Can Be Taken?
A trademark owner can seek legal remedies in cases of:
- Copying or imitation of mark elements
- Misrepresentation of association, sponsorship or origin
- Commercial exploitation of brand goodwill
- Reputational harm or brand dilution
Available Remedies Include
- Injunctions to stop further misuse
- Monetary compensation or damages
- Account of profits earned by the infringer
- Seizure or destruction of infringing goods
- Legal costs and corrective notices
Strong documentation, brand policing and consistent enforcement play a crucial role in successful legal outcomes.
Conclusion
Trademark infringement and trademark dilution are both significant threats to brand identity, but they operate on fundamentally different legal principles.
Infringement prevents consumer deception and market confusion, ensuring trademarks continue to serve their primary role of identifying the true source of goods or services.
Dilution protects brand prestige and uniqueness, especially for well-known marks that command superior recognition and emotional appeal.
As businesses scale and brand equity increases, both forms of protection become essential. Brand owners must remain vigilant, monitor unauthorised brand use and take timely action to prevent both marketplace losses and long-term reputational erosion. Proactive trademark enforcement is not just a legal requirement; it is a critical investment in preserving the value of a brand.
