Monday, November 14, 2011

The Hidden Costs of Unauthorized Trademark Use


!±8± The Hidden Costs of Unauthorized Trademark Use

Each year, hundreds of registered trademarks are illegally used without authorization from the trademarked company. Although the unauthorized use of such trademarks is often for harmless enjoyment without any deliberate harm, there can often be unintended consequences when using a trademark without permission. A trademark should never be reproduced, displayed, or copied without the explicit permission of the registering company.

There have been many instances in the public media in which someone unlawfully used a registered trademark, and had to face the consequences when confronted by the registered company. The latest of these trademark debacles occurred several weeks ago when Chattanooga Tennessee Mayor Ron Littlefield used the Volkswagen VW logo without the company's permission. The resulting conflict has led to a great deal of embarrassment to the mayor, even causing him to issue a public apology regarding the matter.

Littlefield had used the VW logo on about 22,000 fliers sent to voters in his constituency. The flier showed a picture of a door with the VW logo replacing the key hole, and spread across the top was the quote, "Opportunity Knocked: He Answered." The distribution of these fliers to Chattanooga voters prompted Volkswagen to file a complaint with the mayor's department, leading to the public embarrassment which has ensued.

The purpose of the VW logo on the keyhole in the flier's picture was to showcase the fact that the mayor had been a driving force in the decision to build a Volkswagen production facility in the city of Chattanooga. When promoting his campaign for re-election, the mayor decided that including the VW logo would remind constituents of the positive work he had done, including adding jobs and a giving a boost to the local economy by bringing the VW production facility to the city.

Although Littlefield's use of the VW logo in his campaign ad seems like a meaningless mistake, the ramifications of such trademark use can be quite costly for businesses. The unintended effects of illegal trademark use are a cost that businesses across the nation must deal with regularly, and they must work to ensure that they are able to protect the integrity of their beloved identities.

In this instance, it is likely that Volkswagen was uncomfortable with its logo being associated with a particular political candidate. Having the VW logo on the flier could lead recipients to believe that VW is a supporter of the mayor, and that VW is thereby endorsing the mayor's run for re-election. This certainly was not VW's intent, as siding with certain political candidates can lead to damage of a company's reputation.

Bottom line is to always recognize brand names as a commodity and think twice before using an image that does not belong to you.


The Hidden Costs of Unauthorized Trademark Use

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