Stop Business Identity Theft

What about when identity theft happens to your business?   Identity theft is something all Internet and credit card users think about from time to time when transmitting personal information.  We don’t want it to happen to us.  But what if it happens in the business context?

Identity theft in the business context occurs most often when someone knocks off your product and masquerades their shoddy goods as yours.   It is a form of intellectual property theft.

Back in the days of merchant guilds legitimate businesses would distinguish their genuine products from knock-off with “trade-marks” designating the goods’ source of origin.  It was how the consumer knew they were getting the real deal. 

Today, however, technology has made it easier than ever for the trademarks and security devices like holograms to be knocked off too.  As a result, consumers can no longer rely on trademarks alone to certify the authenticity of the goods and verify their source of origin.

If you think you can spot a fake, you might be interested in taking a look at the counterfeit gallery at the International Anti-Counterfeit Coalition website.   As a consumer you might think you’re getting a “good” deal, but on further research you’ll discover that the counterfeit trade fuels all kinds of unsavory criminal activity.   You wouldn’t send such groups a charitable donation; yet, buying their goods has the same bottom line affect.  Besides that, some knock-offs can be dangerous to your safety and health. (Brake pads made with saw dust, anyone?)

Lady Gaga is among the entertainers this concert season fighting counterfeiters seeking to capitalize on her fame.  According to a recent report, her merchandising company, The Bravado International Group Merchandising Services Inc., has filed what is called a John Doe trademark infringement suit.  Such actions empower  U.S. Marshals to seize counterfeit merchandise when they find it.  They are typically filed in anticipation of bootleg merchandise being sold near concert venues.  You know -- those guys selling $5 t-shirts  slung over their shoulder in the parking lot.

Of course, before you can rally the services of the U.S. Marshals by way of a lawsuit you will need an enforceable trademark.  The beauty of a registered trademark is that it gives you a mini-monopoly that is legally enforceable.  Trademarks are a wonderful way to strengthen your brand platform.  They can be used to protect words, designs, slogans, and even certain colors. 

If your brands aren’t currently protected (trademarks for goods and service marks for services), you might find it worthwhile discussing the options with your local trademark lawyer, or check out the online service Legal Zoom to see if they can help you.

Ownership of a mini-monopoly is a two-edged sword.  Exclusivity means you can stop unauthorized usage in its tracks.  The flip side is that others need your permission before they can use your mark.   That can translate into a lucrative licensing opportunity if done properly. 

While trademark and service mark holders are wise to police and protect their marks, there will be times you may want to weigh the need to stop unauthorized use.

For example, The National Pork Board took some heat recently when they sent a cease-and-desist letter to ThinkGeek.  What was the Geeky offense, you ask?  Well, as part of an April Fool’s Day joke they announced the launch of Canned Unicorn Meat, calling it -- you guessed it -- “the new white meat.”  The Pork Board was not amused.  Canned Unicorn Meat was touted as an “excellent source of sparkle.”  But all that it sparked here was a cease-and-desist letter.  You can read more about at it here.

Parody is a defense to a claim of trademark infringement.  Like beauty, parody is in the eye of the beholder.   Yet  the National Pork Board wasn’t taking any chances.  In the Board’s defense, however,  it’s only fair that I point out their recent win against someone else who tried to register a trademark for salmon as “the other red meat.”  It does pay to be vigilant.  They're doing a good job.

Nobody said it was easy being a trademark owner.