1. Dilution of brand’s identity
When your business name is no longer unique enough for consumers to associate it with your business, its brand identity can be diluted as it loses its distinguishability and edge among others in the market.
2. Effects in brand reputation
If bad actors use your brand name to sell counterfeits of your products or to trick customers into giving personal information, making them victims of phishing, this will have a direct impact on your brand’s reputation.
3. Revenue loss
Business name trademark infringement may affect your revenue in a number of ways: when a competitor uses your company name and corresponding reputation, sales are diverted from you and profit is lost. Litigation can cost you hundreds of thousands of dollars in severe cases.
If bad actors filed bad faith trademarks similar to yours in the same category, potentially jeopardizing its registration, you may be forced to change the name of the business, rebranding completely, destroying stock, paying damages, and legal fees. This was the case of Target when they tried to file their brand ‘All go’ (now ‘All in motion’) and found out that there was an existing fraudulent trademark about to be registered in the same category, costing them $17 Million in revenue.