SAMBAR by ABIBAS; Trademark Infringement in a Price Sensitive market.
SAMBAR BY ABIBAS, Trademark infringement in a price sensitive market.
ABSTRACT- Trademark infringement is a significant issue for global brands, particularly in markets where price sensitivity shapes consumer choices. A notable example of this is the case of "SAMBAR BY ABIBAS," a brand that closely resembles the well-known sportswear giant Adidas. This article explores the dynamics of trademark infringement, focusing on the challenges faced by established brands in price-sensitive markets, the legal intricacies involved, and strategic responses to protect brand identity.
Understanding Trademark Infringement
Trademark infringement is defined as the unauthorized use of a trademark or service mark. This use can be in connection with goods or services and may lead to confusion, deception, or a misunderstanding about the actual company a product or service came from.
[1]Trademark infringement occurs when a party uses a brand name, logo, or any other mark that is confusingly similar to a registered trademark owned by another entity. This confusion can mislead consumers into believing that the infringing product is associated with the trademark owner, leading to potential losses in sales, reputation, and brand value. In the case of "SAMBAR BY ABIBAS," the name is evidently designed to resemble the iconic Adidas "Samba" shoe line. By imitating the look, feel, and name, "SAMBAR" aims to tap into the goodwill and consumer recognition that Adidas has built over decades.
For a successful claim of trademark infringement, courts typically consider the likelihood of confusion as a key factor. This concept examines whether an average consumer would likely be confused between the two brands based on similarities in name, logo, or product design. The strength of the original mark, the degree of similarity, the intent of the alleged infringer, and the presence of actual confusion in the marketplace are all factors that can influence the outcome of such cases.
The Impact of Price Sensitivity on Consumer Behavior
Price-sensitive markets present a unique set of challenges for trademark owners. In these markets, consumers often prioritise affordability over brand authenticity. As a result, they may be more willing to purchase products that closely resemble premium brands if they are available at a lower price point. This makes it easier for counterfeiters and trademark infringers to succeed, as their products are seen as acceptable substitutes by cost-conscious buyers.
The case of "SAMBAR BY ABIBAS" is emblematic of this phenomenon. The brand mimics Adidas both in name and in the design of its products, creating a perception of similarity that appeals to budget-conscious consumers. For these buyers, the subtle difference in spelling or branding might not be enough to outweigh the perceived savings, even if they recognize that the product is not an official Adidas offering. This kind of consumer behaviour puts pressure on brands like Adidas, as they must find ways to protect their intellectual property without alienating customers in these markets.
Risks to Established Brands
Trademark infringement can have far-reaching consequences for established brands like Adidas, especially when the infringing products are perceived to be of lower quality. These knock-offs can undermine the premium positioning and reputation that a brand has worked hard to establish. If consumers purchase a product like "SAMBAR BY ABIBAS" and find it to be of substandard quality, they might attribute their dissatisfaction to Adidas, mistakenly thinking that the product is in some way affiliated with the original brand. This can lead to a dilution of brand value and can damage customer loyalty.
Moreover, the presence of imitation products can erode market share, as the lower price of the counterfeit or infringing products can draw away potential customers. For global brands like Adidas, which rely on their image of quality and innovation, such competition from knock-offs poses a significant threat. This makes it essential for them to take swift and strategic action to protect their trademarks and maintain their brand image in the eyes of consumers.
Legal Considerations in Trademark Enforcement
Brands like Adidas have several legal avenues to pursue when dealing with trademark infringement cases such as "SAMBAR BY ABIBAS." Common strategies include sending cease and desist letters to the infringing parties, filing lawsuits in civil courts, and working with local authorities to seize counterfeit goods. The legal battle can be particularly complex in international contexts, where different countries may have varying standards for what constitutes trademark infringement and how aggressively such cases are pursued.
In the case of "SAMBAR BY ABIBAS," Adidas would need to demonstrate that the name "SAMBAR" and its associated branding are likely to cause confusion among consumers. Courts often look at the strength of the mark, which refers to how well-known and distinctive a brand is. Adidas, being a global leader in sportswear, would likely have a strong case due to its long-established reputation. However, pursuing such cases in countries with underdeveloped intellectual property enforcement mechanisms can be costly and time-consuming.
Another important factor is the intent of the alleged infringer. If it can be shown that "SAMBAR BY ABIBAS" intentionally mimicked the Adidas brand to benefit from its reputation, this could strengthen the case against them. Courts tend to take a dim view of businesses that intentionally attempt to mislead consumers. However, proving intent can be challenging, particularly in markets where small-scale manufacturers operate informally and are difficult to trace.
Case Overview
The Delhi High Court ruled in favour of Adidas AG in a trademark infringement case against Keshav H. Tulsiani, who had been using the name “ADIDAS” for his businesses. Tulsiani claimed the name was derived from his affection for his elder sister, whom he called “Adi,” and “Das,” meaning devotee in Sindhi.
[2]Key Points
Background:
○ Plaintiff: Adidas AG, a globally recognized sports brand, founded by Adolf Dassler in 1948. The name “Adidas” combines “Adi” (a nickname for Adolf) and “Das” (from Dassler).
○ Defendant: Keshav H. Tulsiani, who operated businesses under the name “ADIDAS,” claimed the name was a tribute to his sister.
Court’s Findings:
○ The court noted that the term “Adidas” is highly distinctive and unlikely to be chosen innocently.
Legal Arguments:
○ Adidas AG argued that Tulsiani’s use of the name infringed on their trademark, which is well-known and protected under trademark law.
○ Tulsiani claimed that his use of the name was honest and derived from personal reasons, not intended to infringe on the trademark.
Judgement:
○ Tulsiani was ordered to pay Rs 14.22 lakh in damages to Adidas.
Significance:
Strategic Responses for Brand Protection
Protecting a brand's identity in a price-sensitive market requires a multifaceted approach. Here are a few strategies that brands like Adidas can adopt to tackle the challenges posed by imitation products:
- Consumer Education: Educating consumers about the differences between genuine products and imitations can help shift purchasing behaviour. For instance, brands can highlight the value of authentic products through campaigns that emphasise quality, durability, and innovation. This approach can help consumers see the long-term value of buying genuine products, even if they are priced higher than knock-offs.[3]
- Developing Affordable Product Lines: To compete with low-cost imitations, brands like Adidas might consider introducing budget-friendly product lines that maintain core aspects of quality and brand identity. By offering more affordable options, Adidas can retain customers who might otherwise turn to imitation products like "SAMBAR BY ABIBAS." This strategy allows the brand to compete directly with counterfeiters without diluting its premium image.
- Localised Legal Action: While taking legal action against every instance of infringement is impractical, targeted efforts can serve as a deterrent. By focusing on major infringers and pursuing high-profile cases, brands can send a message that they are serious about protecting their intellectual property. This can have a chilling effect on smaller infringers and help to reduce the prevalence of knock-offs in the market.
- Partnerships with E-commerce Platforms: The rise of online shopping has made it easier for counterfeiters to reach a wide audience. Brands like Adidas can work closely with e-commerce platforms to identify and remove listings for infringing products. Many platforms have dedicated mechanisms for reporting trademark violations, and partnering with them can help to keep counterfeit goods out of the digital marketplace.
- Building Strong Relationships with Local Authorities: In markets where counterfeit products are common, building strong relationships with local law enforcement and customs officials can aid in identifying and seizing infringing products before they reach consumers. This approach can be especially effective in countries where trademark enforcement is less stringent, as it allows the brand to leverage local resources to protect its interests.
Conclusion
The case of "SAMBAR BY ABIBAS" serves as a reminder of the complexities that established brands face in price-sensitive markets. Trademark infringement in these contexts is not just a legal issue but also a strategic challenge that requires a deep understanding of consumer behavior and market dynamics. While legal actions are an important tool for protecting intellectual property, they must be combined with efforts to educate consumers, offer competitive alternatives, and collaborate with key stakeholders.
For brands like Adidas, the goal is not just to prevent imitation but to maintain the trust and loyalty of consumers by demonstrating the value of authentic products. This is a delicate balancing act—one that involves safeguarding the brand’s reputation while remaining accessible to a diverse range of customers. By adopting a proactive and multifaceted approach, global brands can navigate the challenges of trademark infringement and continue to thrive, even in markets where affordability often trumps brand loyalty.
REFERENCES
https://www.wipo.int/web/trademarks
https://ipindia.gov.in/trade-marks.htm
[1] What Is Trademark Infringement?
,WINSTON&STRAWN, https://www.winston.com/en/legal-glossary/trademark-infringement
[2] A didi’s Das Delhi High Court upholds trademark ; Local Businessman’s Addidas claim rejected , Abhinav garg, Times of India ,https://timesofindia.indiatimes.com/city/delhi/delhi-high-court-rules-against-adidas-owner-in-trademark-infringement-case/articleshow/111998600.cms
[3] THE INFLUENCE OF TRADEMARKS ON CONSUMER PERCEPTION, DePenning and DePenning, https://depenning.com/blog/trademarks-on-consumer-perception/#:~:text=Trademark%20protection%20aims%20to%20safeguard,unauthorised%20use%20of%20established%20trademarks.