Trouble Ahead For Influencer Revenue

For an estimated $1.6 million, soccer superstar Cristiano Rinaldo will advertise a product in an Instagram post to his 329 million followers. Other celebrities who command more than $1 million per endorsement include Ariana Grande, a handful of Kardashians/Jenners, and The Rock. This practice, known as "influencer marketing," has ballooned from a $1.7 billion market size in 2016 to an expected $13.8 billion in 2021, while at the same time upending traditional print and broadcast advertising.

Now, a trademark lawsuit threatens to derail the gravy train. What happens when an influencer promotes a brand that violates someone else's registered trademark? A California district court is considering this exact issue in a case called Petunia Products, Inc. v. Rodan and Fields LLC.