Federal Trademark Dilution Act - Conclusions

Conclusions

Although approximately 25 states have already enacted laws that prohibit trademark dilution, this new federal law is intended to provide uniform and nationwide protection for famous marks. Thus, the new law renders academic the unsettled question of whether a state dilution claim can support injunctive relief against use in another state in which there is no dilution statute. Nevertheless, what constitutes a "famous" mark is likely to generate controversy in the courts and in the Trademark Office and may well slow the trademark clearance and registration process, as parties seek to settle what constitutes a "famous" mark. In addition, courts have traditionally dismissed state dilution claims unless there is also a finding of infringement or unfair competition based upon a likelihood of confusion. It remains to be seen how courts and the Trademark Office will interpret this new federal law, which has potentially far-reaching applications.

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