Pepsi Case Could Reshape How Courts Judge Trademark Strength

Business owners invest significant time and resources in building brands that customers recognize and trust. A strong trademark can become a valuable business asset that endures for generations.

When adopting a new trademark, companies should pay close attention to third-party use in similar and related fields, as that use may play an important role in future enforcement matters.

To prevail in a trademark infringement lawsuit, a trademark owner must prove that the other party’s actions are likely to cause consumer confusion as to the source of the goods or services. Courts evaluate consumer confusion using several factors, including the strength of the mark, the degree of similarity between marks, and the relatedness of the goods or services.