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Trademarks are intellectual property rights that safeguard words, graphics and symbols used by a specific firm. They provide the trademark owners with the authority to bring legal proceedings against the infringers or counterfeiters of their mark and at the same time prevent the customers from falling into the trap of fake products available in the market.

The two main reasons of action brought under trademark law are dilution of the trademark of a known company and chance of confusion for the customers.

A trademark can get diluted by the unlawful actions of unscrupulous persons or firms, which can tarnish the reputation of the firm by harming the image of the trademarked product with respect to a particular feature or in a general way. For example, if the trademark of a pesticide manufacturer is identical or even similar to that of a popular food manufacturer, consumers might believe that the firm is diverting from its specialty, which might adversely affect its perceived quality.

As far as the possibility of confusion is concerned, it is based on the striking similarity of the two marks, making it difficult for the customers to differentiate between the items. The misunderstanding could be related to the source of the item, its sponsors, or to any other aspect related to it. The confusion is likely to occur because an ordinary customer would not be able to remember the precise details of an item. In such a situation, the real trademark holder is at a risk of significant revenue and credibility loss on account of an infringement by another company.

However, this is not an exhaustive list of the types of trademark infringements that can occur. The owner of the trademark can also take legal action for pass off, which means that some other company is trying to sell its products as coming from him. In the same manner, claims can also be brought due to unfair market competition.

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