Trademark infringement can result in serious legal penalties, though it is often deemed a civil matter rather than a criminal offense. However, the courts may impose a number of financial penalties when infringement is proven. In New Jersey, trademark infringement cases are handled in accordance with federal law, though they are resolved through region-specific court procedures that can have a significant impact on the outcome of a case. Continue reading to learn whether you will be penalized for committing trademark infringement and how an experienced New Jersey trademark lawyer at The Ingber Law Firm can help you fight against such accusations.
What Qualifies as Trademark Infringement Under U.S. Law?
In accordance with United States Copyright law, it is forbidden for any party other than the trademark holder or those with express permission to use a mark in commerce that is likely to result in confusion with an existing, legally protected trademark.
To ensure fairness, the courts will examine infringement claims based on multiple factors rather than a single rule. As such, the trademark owner is required to show they own valid rights and demonstrate actionable misuse of their legally protected trademark.
How Courts Determine if Infringement Exists
- If the plaintiff owns a valid trademark registered with the United States Patent and Trademark Office (USPTO)
- If the accused trademark has been used in interstate commerce
- If the marks are similar in appearance, sound, or meaning
- If the goods and services are similar or target the same consumers
- If actual or likely consumer confusion can be shown
- If the accused use dilutes or impedes the trademark’s distinctiveness
What Penalties Can Arise from Trademark Infringement in New Jersey?
In New Jersey, cases of trademark infringement are generally tried through the U.S. District Court for the District of New Jersey. As such, courts in this jurisdiction must determine whether or not there is a likelihood of consumer confusion, the intent behind the use, and if the infringement continued after a notice was issued. These factors can have a significant impact on the monetary penalties imposed by the courts in the event of infringement.
Ultimately, if the plaintiff can make a convincing case against you, then the federal or state court may rule that you are guilty of trademark infringement. This ruling may lead to you being penalized by stopping the infringement, financially compensating the trademark owner, and deterring future infringement. However, the penalties you face will vary based on the severity of the infringement and the economic harm inflicted upon the trademark owner.
Unlike copyright infringement, which can escalate to a criminal matter, trademark infringement is most often a civil matter, though the penalties imposed by the court can still be incredibly harsh.
Civil Penalties Imposed in Trademark Infringement Cases
- Court-ordered injunctions resulting in the immediate cessation or modification of the mark
- Seizure or destruction of infringing goods
- Monetary damages stemming from the trademark owner’s actual losses
- Disgorgement of profits obtained by the infringement
- Statutory damages in some counterfeit trademark cases
- Attorney’s fees and litigation costs if willful infringement is determined
While there are a number of penalties that those who infringe upon trademarks commonly face, injunctions are the most common outcome, though instances of counterfeit trademarks can result in the imposition of enhanced penalties by the court.
Can Trademark Infringement Ever Result in Criminal Penalties?
While the large majority of trademark infringement cases are civil matters, criminal liability can arise in the event that the unauthorized use transitions into counterfeiting or fraud. As such, criminal trademark cases are prosecuted by the federal government and involve intentional deception for profit.
When Trademark Infringement Becomes a Criminal Offense
- Use of counterfeit marks identical or essentially indistinguishable from registered trademarks
- Intentional trafficking in counterfeit goods or services
- Large-scale commercial distribution
- Evidence of knowing and intentionally willful misconduct
Potential Criminal Consequences in Severe Cases
- Federal fines
- Asset forfeiture
- Probation
- Potential imprisonment for severe cases
What Defenses are Available Against Trademark Infringement Claims?
If you are accused of trademark infringement in New Jersey, it’s critical to understand that this does not mean you will automatically face liability. There are a number of defenses you may be able to utilize based on the specific circumstances of your case.
Common Legal Defenses to Trademark Infringement
- Descriptive fair use when the term is used to describe a product or service
- Nominative fair use when referencing the trademark’s actual goods
- Lack of consumer confusion
- Prior use of the mark before it was registered with the USPTO
- Laches due to unreasonable delays by the trademark owner
- Abandonment or genericization of the trademark
Why Local Representation Matters in Trademark Disputes
If you are accused of violating trademark rights in New Jersey, it’s important to understand that, while federal law governs these cases, they are often litigated in specific jurisdictions. As such, courts in New Jersey apply the same statutes with region-specific proceedings. Working with an experienced New Jersey intellectual property attorney who is familiar with these regional specifics and the local federal courts can have a significant impact on the outcome of your case.
Benefits of Working with a New Jersey Trademark Lawyer
- Early risk assessment to avoid escalation
- Familiarity with the Third Circuit’s interpretation of trademark laws
- Experience with cases that travel through the New Jersey federal courts
- Can assist in injunction requests and leverage settlements
Contact an Experienced New Jersey Trademark Attorney Today
With the complex legal proceedings ahead, you should not go through it alone. Rather, you should have a skilled Essex County, New Jersey intellectual property lawyer from The Ingber Law Firm stand by your side throughout. Contact our firm today.