Due to technological developments, trademark infringement is becoming increasingly common, including the use of another company’s name without permission. Whether a business can challenge such infringement largely depends on whether the alleged infringer operates in the same industry, whether the companies share the same geographical market, and which party first used and registered the mark. Learn about the steps to take when a business uses another’s name and violates their intellectual property rights, and find out how a seasoned Illinois intellectual property lawyer might help companies with their trademark concerns; contact Sullivan & Carter, LLP to speak to our legal team by calling (929) 724-7529.

What Are Intellectual Property Rights?

According to the National Library of Medicine (NLM), an intellectual property (IP) right is an invention, idea, or other creative expression on which the public is willing to grant property status. An intellectual property right grants the IP owner exclusive rights so they can benefit commercially from their creativity or reputation. The main types of IP protection are trademarks, patents, copyrights, and trade secrets; in terms of business names, the relevant type of IP protection is a trademark, defined by the United States Patent and Trademark Office (USPTO) as a design, phrase, symbol, word, or other sign used to identify a company’s products or services.

What Happens if Intellectual Property Rights Are Violated?

If someone infringes another party’s IP rights, this can lead to serious legal consequences. These vary depending on the infringement type and severity of infringement and include the following:

• Financial damages: These damages cover the IP owner’s economic loss as a result of the infringement, including legal fees and profit losses. The aim is to ensure the IP owner retains the same financial position as before the infringement.
• Injunctions: These court orders immediately prevent the making, distributing, and selling of infringing products or services, stopping reputational damage and discouraging similar goods or services from entering the market.
• Criminal penalties: Counterfeiting goods or extensive commercial infringement can lead to criminal penalties deterring illegal IP use.
• Destroying infringing goods: Another implication could be a court ordering the destruction of infringing or counterfeiting goods, removing the items from circulation, protecting the IP, and preventing additional market damage.

What Are Three Examples of a Violation of Intellectual Property?

Common IP violations encompass trademark, patent, or copyright infringement, which occur when a business or individual uses another party’s IP without obtaining consent. Copyright infringement is when someone uses someone else’s creative work, such as images or words, without permission. Patent infringement arises when someone makes, sells, offers to sell, or uses something containing every component of another party’s patent, whereas trademark infringement transpires when an unauthorized party uses a word, logo, symbol, or phrase that another party is utilizing to sell similar or the same goods or services in a manner that might confuse consumers.

Many IP violations happen accidentally, but whether this infringement occurs intentionally or as a result of negligence, IP owners can take steps to prevent these violations, such as monitoring for potential infringement, or stopping them from escalating. Some examples of intellectual property violations include the following.

Insufficient IP Searches

When new companies fail to conduct adequate trademark searches prior to launching their branding, this can give rise to trademark infringement. This leads to inadvertent trademark use, meaning the infringing party may have to adjust their websites, logos, and other branding if the IP owner chooses to enforce their rights.

Explore what to do next after experiencing a violation of your intellectual property rights in greater detail, and discover the legal options available in this scenario. Book a consultation with Sullivan & Carter, LLP today to discuss the case with a Chicago intellectual property lawyer.

Infringing Product Imports

Another IP violation example is when an infringing party imports goods from overseas that violates an IP owner’s trademark, copyright, or patent rights. For trademarks, preventing this is possible by federally registering the mark with the USPTO. After this, the IP owner can rely on the protections afforded by the Tariff Act of 1930, seek assistance from the International Trade Commission, and share their registration with the United States Customs and Border Protection, which helps stop the importation of infringing goods.

Online Infringement

Other parties may create similar social media profiles or websites containing trademarked material, which could even include using a similar web address. This can cause consumers to order goods from a copycat website, resulting in sales losses, damaged reputation, and unhappy customers who never receive the goods. Another business might also reuse a company’s logo and simply credit the IP owner without obtaining a license, causing less deliberate infringement.

To prevent this type of trademark infringement, quickly contact the social media platform or website provider and ask them to remove the content. For registered trademarks, proving ownership of the IP is easily achievable by citing the federal registration number.

What To Do if Someone Uses Your Intellectual Property

When someone uses another party’s intellectual property without permission, the IP owner can ask the alleged infringer to stop, and when this fails to produce results, court action might be necessary. Below is an explanation of these steps.

Ask the Infringer To Stop

After identifying possible trademark infringement, the initial step involves contacting the alleged infringer. Typically, this entails sending a cease and desist letter asking the business or individual to stop using the trademarked material; effective letters normally include details about the trademarked material and why the infringing party’s actions constitute infringement, the type and extent of infringement, the desired action, such as removing certain website material, and a deadline for the infringing party to respond.

Consider Legal Action

Filing a civil action is a possible option if writing to the infringer does not produce results. If the case involves a registered mark, a federal court handles the lawsuit, but if it concerns an unregistered mark, a state court is likely to deal with the case.

Book a Consultation With a Chicago Intellectual Property Lawyer Today

Through vigilant action, businesses can effectively enforce their IP rights, safeguard their brands, and reduce profit losses. In addition, prudent trademark monitoring is necessary to identify potential infringers and reduce the harm caused by the infringement. To understand what to do when another company violates a business’s intellectual property rights, and to gain assistance with IP-related queries, consider reaching out to an experienced Chicago intellectual property lawyer from Sullivan & Carter, LLP; call (929) 724-7529 today to arrange a consultation.