Protecting intellectual property is a strategic priority for companies of all sizes and sectors. However, despite efforts to safeguard these valuable assets, trademark infringements remain a constant risk that companies must confront.
In this article, we’ll delve into the risks and legal and financial consequences of trademark infringement in detail, underscoring the critical importance of protecting and enforcing intellectual property rights.
Miami, being an international commercial and financial epicenter, attracts companies and entrepreneurs from around the world seeking to expand their operations and capitalize on business opportunities in Latin America, the Caribbean, and beyond. In this context, working alongside international business lawyers is essential.
With the increase in regulation in areas such as international trade, money laundering, and data protection, companies need specialized guidance to comply with applicable international regulations.
Today, we bring you a famous case to evaluate the role played by international lawyers.
Let’s talk about the risks of trademark infringement
One of the most serious consequences of trademark infringement is the potential to face civil lawsuits from the legitimate owner of the registered trademark. These lawsuits may seek compensation for damages suffered as a result of the infringement, which can include direct economic losses, loss of profits, and damage to the brand’s reputation.
Mounting a defense against a trademark infringement lawsuit can be costly in terms of legal fees and other associated expenses. Prolonged litigation can incur significant costs, regardless of the case’s outcome, placing additional financial strain on the infringing company.
Trademark infringement can severely damage a company’s reputation and credibility, particularly if it’s perceived as a violation of intellectual property rights and unethical business practice. This can undermine consumer trust in the company and its products or services, leading to negative impacts on sales and long-term brand loyalty.
In extreme cases, if a company is found liable for trademark infringement, it may be compelled to change its brand identity, including the trade name, logo, and other brand elements. This can be costly and disruptive for the company, potentially requiring a redesign of marketing materials, website updates, and overall corporate rebranding.
Undoubtedly, trademark infringement can have repercussions in the market, opening the door for competitors to capitalize on the situation, gain market share, and undermine the infringing company’s position in the market.
A case analysis: Inter Miami vs Inter Milan
The Inter Miami team, led by David Beckham, lost a legal battle with Inter Milan for the rights to the name, and will have to change their name.
There are still judicial instances, but the first battle was over for the Italian team.
The confrontation has its origin in 2014, when Inter de Milan tried to register the “Inter” brand through the USPTO, in order to have exclusive marketing rights related to football with this word. This created a problem when the team, in September, 2018, announced the creation of a new David Beckham franchise in the MLS that would be called Inter Miami CF.
The Italian soccer team started the battle explaining that “Inter” is already synonymous with Inter de Milan. The MLS response argues that the word “inter” is a mere descriptive word.
However, the United States Patent and Trademark Office dismissed the argument of Inter Miami.
The USPTO resolution dismissed the argument, since, while there are other clubs in the world known by the word ‘Inter’, it was not possible to prove that MLS had valid reasons to own the word ‘Inter’.
Inter Miami has returned to present arguments, attempting not only to demonstrate that “Inter” is a descriptive word but also that this term is recognized by consumers as the name of the Miami team and not the Italian one.
Today, Inter Miami is no longer obligated to change its name. If this had happened, it would undoubtedly have dealt a severe economic blow to the club.
Instances like these underscore the importance of having specialized business lawyers.
International Busines Lawyers
A business lawyer will know how to protect you not only in court, but also will help you negotiate in the pre-trial stages. In most cases, a resolution agreed to a conflict is possible. In this way you will avoid paying large sums of money and losing productive time.
A business lawyer can tell you if it is necessary to go directly to court or if it is possible to negotiate an alternative dispute resolution.
At Markowicz International, we boast extensive experience, both in courtrooms and in negotiation. Our business lawyers in Miami are dedicated to providing high-quality legal services tailored to the individual needs of each client. Additionally, thanks to our network of strategic partners in the world’s major business centers, we can offer a global approach and effective representation in complex and cross-border commercial matters.