Top 6 Tips for How to Respond to Brand Theft

Imagine this: you've worked hard to start your own business and build your brand's reputation. Then you stumble upon a customer mentioning a similar store with your name but lacking your standards. Or worse, discovering a sneaky domain name diverting your web traffic. As a small business owner, it's a punch-in-the-gut moment, right? 

This could hurt your brand's image with customers and bring losses to your business. So, how do you navigate the path forward in this unsettling territory after the initial shock?

Luckily, there are many ways to respond to brand theft in such situations. Let's unpack six insightful tips for handling such scenarios that also focus on brand protection:

1. Assess brand importance

Your brand is your prized possession. So, the first step in brand protection is gauging its significance to your business. Have you safeguarded it by registering it as a trademark with the US Patent and Trademark Office (USPTO)? Even if you haven't obtained official registration, evidence of your prior use of your brand names can provide a strong foundation.

Scrutinize your marketing history and data. Did you build an identity and association with this name? This will give you a distinct advantage in any future case of infringement. Understanding the value and history of your brand lays the groundwork for the steps you'll take next.

2. Evaluate the infringer

Understanding your opponent's stance is pivotal. How important is your brand to them? Are they an established company or just a website with no substantial standing? Are they a direct competitor for your products and services, or do they operate in an entirely different sphere? Is their infringement causing you to lose revenues? Is it causing confusion in the minds of customers?

Knowing their motives and level of involvement can help tailor your response accordingly. A non-competitive entity might necessitate a different approach compared to a direct rival.

3. Weigh the risks

Consider the risks before making a move. Is the infringing party a legitimate business with the potential to mount an aggressive counteraction? Assess their capabilities and anticipate their response. 

Engaging in a legal battle with large companies demands meticulous planning, a thorough understanding of potential ramifications, and access to financial resources.

If you're competing against a well-funded rival, you could try negotiating or finding a friendly resolution. This could save you some hefty legal fees and help avoid negative publicity in a high-profile dispute that could hurt your brand more than your rival's.

You should also consider if you hold any accountability for the infringement. For example, if your employees leaked trade secrets or indulged in bad business practices, legal action could expose you to other problems and unwanted scrutiny. It's advisable to do an internal investigation before filing a report for infringement.

Remember, as the owner of the company, you have to protect your brand even while fighting brand theft.

4. Ensure legal protection

Before escalating matters in a legal battle, ensure your intellectual property rights are airtight. Are your competitors infringing solely on your business name, or do they encroach upon patented inventions or ideas? 

Verify the status of your trademarks and patents, both domestically and on an international scale. Strengthen your legal standing to fortify your position.

This process will ensure that even in case of litigation, you're on a stronger footing. If you're unsure of where you stand regarding IP protection, you should consult a legal expert like a trademark attorney. Your legal counsel can help you check if you have a strong case and if your rivals can claim exceptions like fair use or any other potential pitfalls.

5. Seek a business-oriented solution

While it's understandable to be upset or even angry about brand theft, the legal process can often be complicated and expensive. Resist the urge to jump into confrontation mode immediately. Instead, explore amicable, business-oriented solutions.

To begin with, you could report the infringement to them officially. It could happen that the infringement is unintended. A friendly conversation or a face-to-face meeting with the other businesses might lead to a mutually beneficial resolution.

Especially small businesses might be much more open to exploring alternative solutions. Rushing into aggressive legal tactics could exacerbate the situation and create more tension.

6. Consider legal recourse as a last resort

Before considering legal action in cases of brand theft, exhaust all amicable solutions. Litigation is not only costly and lengthy but could also erode customer trust.

If peaceful negotiations fail, consult with an experienced trademark attorney. In these situations, a balanced approach is crucial: understand your brand's value, investigate the reasons behind the infringement, and seek harmonious resolutions first.

Protecting your brand demands strategic and patient planning, not impulsive decisions. A carefully crafted brand protection strategy is your strongest shield against brand theft.