According to the legal definition, a trademark is any sign that distinguishes one company’s goods from another’s and can be presented in a register in a way that allows for clear and precise identification of the protected object.
A trademark is an intangible asset that takes a specific form of representation, e.g. a word, logo, drawing, letter, number, colour or spatial form, including the shape of goods or packaging, or a sound. A trademark is associated with a product or service, creating a link in the minds of consumers between the trademark and the product or service in question. Thus, the purpose of a trademark is to create a positive image of the characteristics and quality of the goods or services offered. Consequently, a trademark becomes a distinctive sign and a carrier of specific information for customers.
Protecting service trademarks in e-commerce will be particularly important in a competitive market.
What role do trademarks play in e-commerce?
In e-commerce, trademarks can utilise all the traditional functions of trademarks, such as the distinctive function (indicating origin), quality, advertising, communication and investment functions.
Types of trademarks used in e-commerce:
Word trademarks play a special role in e-commerce and are particularly important, as they are most often used as a distinctive part of an internet domain name or the name of an online store.
Additionally, word trademarks are used to identify the goods or services offered.
Word and graphic or purely graphic trademarks are also widely used to identify stores and form part of their logotype and website layout.
Benefits of registering a trademark in e-commerce
Trademarks are the foundation for building a brand’s image and reputation, which translates into customer trust in the goods or services offered.
Having a registered trademark enables the effective enforcement of rights and the blocking of the sale of counterfeit goods on e-commerce platforms, as well as providing defence against infringements.
Using the ® symbol to indicate that a trademark is registered increases trust in and recognition of the trademark in e-commerce.
A registered trademark can be licensed or sold.
Trademarks in applications:
The number and use of apps is steadily increasing. Over the past 15 years, apps have become the main way in which users access content and a wide range of services, including e-commerce and banking. They provide access to content and services on a variety of devices, including mobile phones, tablets, TVs and smart watches.
While the increased use of apps and app stores has brought many benefits to consumers and businesses, it has also led to their misuse for illegal and misleading activities, including those that infringe registered trademark rights in e-commerce.
Several categories of intellectual property rights infringement can be distinguished with regard to apps, including in particular:
– infringement of intellectual property rights in copyright-protected apps, where apps or specific parts thereof are reproduced or copied without the consent of the rights holder;
Infringement of third-party intellectual property rights through applications, including the illegal use of trademarks and/or logos to mislead users about the content and counterfeit products.
Such actions infringe the intellectual property rights of copyright holders and also negatively affect and mislead users and advertisers.
Infringers use various techniques to avoid detection by app stores and rights holders, and subsequent enforcement. These include:
– apps disguised as games or other seemingly legitimate apps to hide their illegal purpose;
– apps that hide malicious code from app store reviewers by encrypting it with additional code that is only installed after the initial installation or through updates.
– Apps designed to hide their IP address and circumvent blocking measures or restrictions on access to content based on geolocation.
Ad placement fraud occurs when advertisers are misled into placing ads in fake apps under the false belief that they are legitimate or marked with a well-known trademark.
Preventing intellectual property rights infringements in applications
This involves a number of challenges related to the misuse of applications and app stores.
Actions taken by infringers:
– Law enforcement: Although app stores have terms and conditions that specify the information developers must provide to submit an app, infringers continue to use misleading or false contact details.
Many app stores and apps have measures in place to prevent their services being abused for illegal or harmful purposes. These measures include terms of use, user verification and app review processes.
Summary:
Using registered trademarks in e-commerce is important because it enables rights holders to build a credible brand and generate financial benefits. Without adequate trademark protection, the rights of rights holders can easily be infringed, which can negatively affect the brand’s reputation and cause damage. Therefore, it is important to choose and protect trademarks in the e-commerce industry wisely.
Thanks to our cooperation with FGGH IP patent attorneys, we can help you to properly protect the layout you have developed, the name of your online store, and the names of your products and services.
Author:
Alicja Kicińska-Fujawa
alicja.fujawa@fgghip.com
