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Brand violation: a complete guide to protecting businesses

branddi · Published on · Updated on

Brand violation: a complete guide to protecting businesses

Brand infringement is a common threat faced by companies across all industries. After all, all it takes is for your business to gain relevance and credibility in the sector for some malicious user to see it as a possible way to deceive their consumer public.

In other words, contrary to what many people think, the end customer is not the only victim of brand violators: companies are also greatly impacted by these practices.

But what are these violations really, what are the consequences for brands and how can you prevent them from threatening your results? Come with Branddi and understand more about the subject!

What are brand violations?

Before we talk about what brand 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.

Among these practices we can mention unauthorized uses, counterfeits (piracy), plagiarism and patent copying.

Want to know more about each type? Check out the topics below with Branddi!

Unauthorized use of the brand

Johnnie Walker is a century-old Scottish brand recognized for its whiskeys, responsible for revenue of 17.11 billion pounds in 2023 alone.

And it was exactly because of this popularity and dominance in the market that, in 2008, the Agropecuária Santo Antônio do Cerrado, specialized in the production of brandy, decided to create the “João Andante” cachaça, a tribute to the first brand.

This use, in this case, can be understood as an unauthorized use of a brand which, as the name says, involves the use of elements that refer to an already established brand, without due authorization from the rights holder.

In the case of a dispute between Johnnie Walker and João Andante, the joke was not well received by the European company, which managed to legally prevent the use of its exclusive elements.

Piracy

Piracy, which is the unauthorized reproduction, distribution or commercialization of products protected by intellectual property rights, is so naturalized by the market that many companies do not even understand the true cost of this violation. Proof of this is that, in Brazil alone, piracy combined with smuggling cost more than R$450 billion, according to data from the study “Illegal Brazil in Numbers”, by the National Confederation of Industry (CNI). src="https://cdn.prod.website-files.com/6689757856399456a21b0ba3/676413abdc680968e4660de4_AD_4nXeRrf5iy3qOVJRSvJV6j44W yPhHqQrIJjnL5qzOotJY85PP2ADxPAecNdTkBB2L7llokl2O9-Y6bNCTU-wvA4hKm6Siz2gCv_dgW7_am72t2NkBuQs9g2q9XLlDj0EKR2G19ImroQ.png" width="auto" height="auto" alt="" loading="auto" id="">Data from the study “Illegal Brazil in Numbers”, by the National Confederation of Industry (CNI). This is because the damage caused by counterfeit products can also affect the brand's reputation and consumer trust.

Plagiarism

When we talk about plagiarism, it is common for people to immediately think of the music world. After all, these cases tend to gain a lot of attention in the media, involving legal disputes between renowned artists and high compensation. Gradiente.

In this situation, the conflict was caused by the right to use the term iPhone, which was registered in Brazil before sales of the Apple product began in the country. The dispute is still ongoing in the Federal Supreme Court (STF).

Patent copying

Commonly confused with plagiarism, patent copying concerns 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 distributor Nintendo and Pocketpair, producer of the Palworld game. The dispute is still ongoing in court.

How do trademark infringements negatively impact a brand?

As we have seen throughout this article, different types of trademark infringements represent a significant threat to companies across all sectors. 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 damage to reputation, loss of consumer trust, weakening of competitiveness and even legal risks that can compromise business sustainability.

Understand more about each consequence that violations can cause to your business!

Reputation damage

A good reputation is one of a brand's main assets. This is because it not only attracts consumers, but 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 thing happens in the opposite situation: a bad 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 infringements do, associating legitimate companies with inferior products and services. In addition, of course, to breaking the relationship of trust with the consumer, impacting commercial 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 this differentiation, making it difficult to maintain market leadership.

And this is where brand dilution occurs, weakening the identity and consumer perception of the originality and exclusivity of the business. Which, as a result, hinders the brand's growth and expansion, reducing its long-term viability. src="https://cdn.prod.website-files.com/6689757856399456a21b0ba3/676413ac1307bb4f54ec2601_AD_4nXeS6CEHM-0094ISEEd2OiG "" width="auto" height="auto" alt="" loading="auto" id="">Data from Microsoft ‍

According to data from Microsoft this year, the Brazilian consumer is increasingly discerning. Proof of this is the result of the study that showed that each customer makes, on average, 49 searches before making a purchase.

Now, imagine what would happen to the user's 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 means that consumers are unable to distinguish between a legitimate product and a counterfeit. And it is 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 violation cases that we decided to bring in this text, it is possible to notice a similarity: they all ended in legal disputes. This process, although necessary to safeguard the company's interests, can be time-consuming, expensive and bureaucratically complex.

However, these legal and bureaucratic risks associated with trademark infringements are not limited to the direct financial cost of a lawsuit. After all, they also involve the time and resources that the company needs to allocate to deal with the situation, affecting its ability to focus on strategic activities and its growth.

In addition, the process can be prolonged, as legal processes typically involve detailed investigations, negotiations and the need to gather substantial evidence.

Direct financial impact

In the introduction to this topic, we said that the impact financial is not the only consequence of trademark infringements. But this does not mean that financial loss is not a relevant point: quite the opposite!

After all, the direct financial impact of brand violations goes far beyond the immediate loss of sales, affecting several critical aspects of the business.

Firstly, traffic diversion is a common consequence when imitations or counterfeits are marketed as if they were the original product. This means that consumers are diverted to unauthorized websites or product sales channels, which results in lost conversions and harms the ROI of marketing campaigns of the legitimate company.

In Brazil, a sector that continually suffers from these issues is sports. Proof of this is that, in 2021 alone, companies in this market lost R$9 billion because of piracy.

But then, how can you prevent your business from suffering from the increase in trademark infringement?

How to protect your brand against trademark infringement in 5 steps?

Now that you know more about the consequences of infringement brand can bring to your business, you no doubt want to understand how to protect it. However, for this, there is no magic answer or tool: it is necessary to integrate technology, positioning and strategies to guarantee effective protection. Let's go?

Register your brand

In other words, it represents a solid legal basis to prevent 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 trademark infringement. After all, when consumers understand the risks and consequences of consuming counterfeit products, they become allies in protecting your brand.

Proof of the success of these actions is the increase in Brazilians' awareness of the issue. This is because, according to a CNI survey carried out this year, 7 out of 10 consumers agree that piracy harms the country's economy.

This awareness is the result of the high discussion on the topic in recent years, showing that it is possible to mobilize consumers to protect brands.

This can be done through awareness campaigns on their digital channels, loyalty programs and authenticity certifications.

Implement protection policies on social networks

Regardless of whether you choose to operate on marketplaces or social networks, be sure 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 are not always perfect, they can be called upon to address cases of infringement such as fake profiles and advertisements and misuse of logos.

Pay attention to contracts and licenses

Ensuring protection of your brand goes beyond digital strategies focused on 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 elements of your company.

This includes robust clauses that establish the conditions for using intellectual property and strict penalties in case of violation.

This way, you not only unify your internal policy, but also guarantee legal support in case 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 it is exactly at this point that Branddi operates. Thus, with our exclusive system, which combines A.I., cutting-edge technology and human expertise, your business can surpass average monitoring, finding violations that operate below the traditional radar. target="_blank">social networks, carrying out an in-depth analysis during the search for exclusive elements of your business. Then, if suspicions are confirmed, we send out-of-court notifications and monitor 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 Branddi team and understand how we can increase your protection with our shielding marketing!

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