Trademark dilution refers to the weakening or loss of a brand's distinctiveness or prestige as a result of improper, excessive, or unauthorized use. This phenomenon poses a significant threat to well-known brands, as it can impair their ability to stand out in the marketplace, even in the absence of direct competition or consumer confusion.

The concept of dilution was developed in the article The Rational Basis of Trademark Protection, published in 1927 in the Harvard Law Review by Frank Isaac Schechter. In this text, Schechter argued that the function of a trademark goes beyond indicating the origin of a product or preventing fraud and unfair competition. In his view, the true rationale for protecting a trademark lies in preserving its distinctiveness or "selling power", which constitutes a commercial value of its own, independent of the product or service it identifies.

The acceptance and regulation of trademark dilution is not uniform across the globe. Recognition of the concept varies depending on the laws of each country. For instance, in Mexico, the Federal Law for the Protection of Industrial Property (LFPPI) addresses the issue in Articles 173, sections XVI and XVII. In the United States, the law distinguishes between two types of dilution: blurring, which occurs when the distinctiveness of a famous mark is weakened by the use of similar marks on unrelated goods or services; and tarnishment, which happens when the reputation of the mark is harmed due to its association with poor-quality products or negative connotations.

For a case of dilution to be established, two key conditions must be met: 1) existence of well-known or famous trademark; and 2) likelihood that unauthorized use of that mark by third parties will weaken or tarnish its distinctiveness.Unlike other types of trademark infringement, dilution does not require the presence of consumer confusion.

The consequences of dilution are serious and often difficult to reverse. Common problems include the loss of brand identity and economic value, the rise of parasitic practices, challenges in maintaining reputation, and the erosion of acquired trademark rights.

In conclusion, trademark dilution presents a real risk to the most valuable brands, and its prevention requires a well-structured legal and commercial strategy. Recognizing its importance and addressing it through appropriate policies is essential to protect one of a company’s most significant assets: its brand.

For more information, please contact:

Mayra Vázquez at the email address mayra.vazquez@vila.com.mx