Trademark Coexistence Agreement

OVERVIEW

In situations where two trademark owners have acquired rights to the same or similar marks, a co-existence agreement becomes necessary. The purpose of this kind of agreement is to settle any possible trademark disputes. Frequently, the products or services are provided through distinct trade channels, are offered in disparate geographic locations, or are unrelated. The agreement must specify exactly what each party’s rights are as well as how to prevent confusion in the marketplace. Any party preparing to enter into a co-existence agreement needs to consider the advantages and disadvantages of doing so.

One kind of co-existence agreement is a consent agreement. In order to obtain registration, trademark applicants may add a consent agreement to the file of a trademark prosecution. The trademark applicant’s best chance of persuading the Examiner that there won’t be any likelihood of confusion between their proposed mark and the mark cited against their application is frequently through the use of a consent agreement.

ADVANTAGES

Dispute Resolution: Trademark conflicts can be financially burdensome, time-consuming, and detrimental to the reputation of the parties involved. However, by voluntarily entering into a coexistence agreement, businesses can proactively address potential conflicts, significantly reducing the likelihood of disputes that could lead to expensive legal proceedings.

Safeguarding the Brand Identity: Each party involved in the agreement maintains the right to use their trademark without interference from the other party, ensuring the preservation of their brand’s distinctiveness and uniqueness

Facilitate Fair Competition: Instead of resorting to aggressive tactics or attempting to eliminate competitors, coexistence agreements allow businesses to coexist in the marketplace while respecting each other’s rights. By clearly defining the scope of trademark usage, these agreements ensure that both parties have equal opportunities to compete and offer their products or services to consumers.

Reducing the Risk of Confusion: When similar trademarks coexist without proper guidelines, consumers may become perplexed about the origin of goods or services, leading to distrust and potential harm to the involved brands. Coexistence agreements provide clarity and well-defined boundaries, enabling consumers to make informed decisions and trust the authenticity and quality associated with each trademark.