Brand infringement is a common threat faced by companies across all industries. After all, it is enough for your business to gain relevance and credibility in the sector for some malicious user to see it as a possible way to deceive your consumer audience.
In other words, contrary to what many people think, the end customer is not the only victim of trademark violators: companies are also very impacted by these practices.
But what really are these violations, what are the consequences for brands and how can you prevent them from threatening your results? Come with Branddi and learn more about it!
What are trademark violations?
Before talking about what trademark violations are, it is essential to highlight that this is an umbrella term, used to describe actions that compromise the integrity and exclusivity of a brand.
These practices include unauthorized uses, falsifications (piracy), plagiarism, and patent copying.
Do you want to know more about each type? Check out the topics below with Branddi!
Unauthorized brand use
Johnnie Walker is a centuries-old Scottish brand renowned for its whiskeys, responsible for a revenue of 17.11 billion pounds in 2023 alone.
And it was precisely because of this popularity and dominance in the market that, in 2008, Agropecuária Santo Antônio do Cerrado, specialized in the production of moonshine, decided to create “João Andante” cachaça, a tribute to the first brand.
This use, in this case, can be understood as an unauthorized use of a trademark that, as the name says, involves the use of elements that refer to an already established trademark, without the proper authorization of the rights holder.
In the case of a dispute between Johnnie Walker and João Andante, the game was not well received by the European company, which was able to legally prevent the use of its exclusive elements.
piracy
Piracy, which is the unauthorized reproduction, distribution, or sale of products protected by intellectual property rights, is so naturalized by the market that many companies don't even understand the true cost of this violation. Proof of this is that, in Brazil alone, piracy combined with smuggling cost over R$ 450 billion, according to data from the study “Illegal Brazil in Numbers” by the National Confederation of Industry (CNI).
However, it's not just your financial health that's compromised by piracy. This is because the damage caused by counterfeit products can also affect brand reputation and consumer trust.
Plagiarism
When we talk about plagiarism, it's common for people to immediately think of the musical world. After all, these cases tend to gain great attention in the media, involving legal disputes between renowned artists and high compensation.
However, plagiarism goes far beyond the music industry and can occur in virtually any creative or commercial sector, affecting everything from literature and design to advertising campaigns and products.
As an example of this “imitation” without authorization and due credit, we can cite the Apple iPhone x iPhone Gradient case.
In this situation, the conflict was caused by the right to use the term iPhone, which was registered in Brazil before the start of sales of the Apple product in the country. The dispute is still pending before the Supreme Federal Court (STF).
Copy of patents
Commonly confused with plagiarism, patent copying refers to cases in which an invention protected by a patent is reproduced, used, sold, or commercially exploited without the authorization of the rights holder. That is, unlike plagiarism, patent copying involves the violation of legal rights previously granted by the intellectual property regulatory body.
This is the case that developed between the game producer and publisher Nintendo and Pocketpair, producer of the game Palworld. The dispute is still going on in the judicial sphere.
How do trademark violations negatively impact a brand?
As we've seen throughout this article, the different types of brand violations pose a significant threat to companies across all industries. Especially those that invest time, resources, and creativity to build a solid identity in the market.
That is, when we talk about brand violations, we are talking about much more than financial impacts. After all, we also need to consider reputational damage, loss of consumer confidence, weakening of competitiveness, and even legal risks that may compromise business sustainability.
Learn more about each consequence that violations can cause to your business!
Damage to reputation
A good reputation is one of a brand's key assets. That's because it not only attracts consumers, but it also builds loyalty, trust, and differentiation in the market.
In other words, when a brand is recognized for its quality, ethics, and commitment to the consumer, it becomes more than a simple product or service — it becomes a reference. However, the same is true in the opposite situation: a poor reputation can have devastating effects, impacting not only public perception, but also the brand's competitive position in the market.
And that's exactly what brand violations do, associating legitimate companies with substandard products and services. In addition, of course, to breaking the relationship of trust with the consumer, impacting business partnerships and undermining the built value of the business.
Brand dilution
When third parties copy or reproduce elements of a brand without authorization, they dilute the value of that differentiation, making it difficult to maintain market leadership.
And that's where brand dilution occurs, weakening the consumer's identity and perception of the originality and exclusivity of the business. This, as a result, hinders the growth and expansion of the brand, reducing its long-term viability.
Consumer confusion
According to data from Microsoft this year, Brazilian consumers are increasingly cautious. Proof of this is the result of the study, which showed that each customer performs, on average, 49 searches before making a purchase.
Now, imagine what would happen to user trust if they found incomplete and dubious information about your business and your brand's links with counterfeit products and low quality services. This would generate significant confusion, especially considering the increased caution in purchasing decisions, wouldn't it?
This lack of clarity and the association of the brand with imitations mean that your consumer is unable to distinguish between a legitimate and a counterfeit product. And it's this confusion that results in a loss of trust and loyalty, making your business even less attractive and competitive.
Legal and Bureaucratic Risks
In all the cases of violation that we decided to bring up in this text, it is possible to notice a similarity: they all ended in legal disputes. This process, while necessary to safeguard the company's interests, can be lengthy, expensive, and bureaucratically complex.
However, these legal and bureaucratic risks associated with trademark violations are not limited only to the direct financial cost of a legal proceeding. After all, they also involve the time and resources that the company must allocate to deal with the situation, affecting its ability to focus on strategic activities and its growth.
In addition, the process can be lengthy, as legal proceedings normally involve detailed investigations, negotiations, and the need to gather substantial evidence.
Direct financial impact
In the introduction to this topic, we said that the financial impact is not the only consequence of trademark violations. But that doesn't mean that financial loss isn't a relevant issue: quite the contrary!
After all, the direct financial impact of brand violations goes far beyond the immediate loss of sales, affecting several critical aspects of the business.
First, traffic diversion is a common consequence when imitations or fakes are marketed as if they were the original product. This means that consumers are diverted to sites or channels for the sale of unauthorized products, which results in lost conversions and impairs ROI of marketing campaigns from the legitimate company.
In Brazil, one sector that continuously suffers from these issues is the sports sector. Proof of this is that, in 2021 alone, companies in this market lost R$ 9 billion because of piracy.
But then, how do you prevent your business from suffering from increasing brand infringement?
How to protect your brand against trademark infringement in 5 steps?
Now that you know more about the consequences that trademark infringement can bring to your business, you definitely want to understand how to protect it. However, for this, there is no answer or magic tool: it is necessary to integrate technology, positioning, and strategies to ensure effective protection.
It was with this in mind that we, at Branddi, decided to create this quick step by step to guide the construction of a solid plan for the protection of your brand. Shall we go?
Register your brand
As we can see in the graph above, the birth and registration of new companies reached its peak in 2024. But is this registration alone able to protect your business against violations?
While not capable of providing the necessary protection in isolation, trademark registration It is indeed a crucial step to guarantee exclusivity and legal rights over your identity in the market. After all, it grants the right of exclusive use of the name, logo or symbol throughout the territory where it was registered.
In other words, it represents a solid legal basis to avoid use by third parties.
Educate your consumers
Educating your consumers about the authenticity of your brand and the importance of purchasing products or services directly from the official source is a crucial strategy to combat brand infringement. After all, when consumers understand the risks and consequences of consuming counterfeit products, they become allies in protecting their brand.
Proof of the success of these actions is the increase in Brazilians' awareness of the topic. That's because, according to a CNI survey conducted this year, 7 out of 10 consumers agree that piracy harms the country's economy.
This awareness is the result of the high discussion that the topic has had in recent years, showing that it is possible to mobilize consumers to protect brands.
This can be done through awareness campaigns on your digital channels, loyalty programs, and authenticity certifications.
Implement protection policies on social networks
Regardless of your choice to operate on marketplaces or social networks, rest assured that there is a protection policy. After all, these platforms generally have some level of protection for trademarks and intellectual property rights.
While these protections aren't always perfect, they can be triggered to handle cases of violation, such as fake profiles and advertisements, and misuse of logos.
Be aware of contracts and licenses
Ensure the protection of your brand goes beyond digital strategies aimed at advertising. This is because it is also essential that all contracts and licenses related to the use of your brand are well defined, clearly specifying the exclusive rights of the elements of your company.
This includes robust clauses that establish the conditions of use of intellectual property and strict penalties in the event of a violation.
That way, you not only unify your internal policy, but you also guarantee legal support if something gets out of control.
Constantly monitor your brand
Finally, it would be impossible to talk about brand protection without mentioning constant monitoring. After all, it is this attentive positioning that allows the company to identify a trademark violation early, before it becomes a problem.
And that's exactly where Branddi works. Thus, with our exclusive system, which combines AI, cutting-edge technology and human expertise, your business is able to exceed average monitoring, finding violations that operate under traditional radars.
To do this, we monitor Google, marketplaces, and advertisements 24/7 in Social networks, carrying out an in-depth analysis while searching for unique elements of your business. Then, in case of confirmation of suspicions, we send extrajudicial notifications and follow the entire process until the products are removed from the pages.
Do you want to understand more about how to protect your brand against the dangers of trademark infringement? Contact the Brand by team and understand how we can increase your protection with our armor marketing!
.png)
Pronto para blindar sua marca?
Não deixe seus clientes caírem nas garras de concorrentes, golpistas e aproveitadores.