Unique logo? Ensure legal protection before trouble strikes

Cognizant's branding hit a wall in April-May 2024. In May, while promoting their internal program BlueBolt, they swapped their social media logo for "Innovate," causing confusion amongst customers as the website logo remained unchanged. This raised the question about the importance of maintaining a consistent visual identity across platforms.

Moreover, a legal challenge in April forced Cognizant to stop using their logo in India when the Bombay High Court ruled against Cognizant in a logo infringement case filed by Bengaluru-based Atyati Technologies.

Paritosh Dhawan, Principal & Founder, Dhawan and Co. says that for entrepreneurs and companies alike, a logo serves as a pivotal magnet for attracting attention and generating interest, leaving a lasting impression. In an era characterized by the rapid proliferation of startups and businesses, registering one's logo with the appropriate authorities becomes an absolutely vital part of the strategy. Consequently, registration can mitigate significant costs and enhance the likelihood of success in cases where your business faces infringement by entities utilizing your brand and its marks, in some way or the other.

Subhash Bhutoria, Founder and Principal, LAW SB says “The dispute seems to have arisen on account of use of vector art as the inspiration for creating logo design. It is a common issue in designing services, because of which businesses end up adopting and using similar logos. As a practice, before adopting and using any logo for its use in the course of business, the business must conduct pre-adoption conflict searches... Generic Google image search can be extremely helpful in identifying conflicting marks.”

Bhutoria advises to take proper legal advice on use and registrability of a logo. This way, businesses can avoid adverse legal consequences including infringement proceedings, to a large extent. According to him, this also helps in mitigating loss of revenue and of reputation, which is bound to happen on account of any such legal action. It is extremely important to register trademarks including logos and devices as registration grants statutory protection. Also, in case of any dispute involving registered marks, the official examination and the validity of registration can help in supporting an e facie case in favour of the defendant. There are several matters, few of which are reported judgments as well.

Recently, Bhutoria and his team assisted the famous Murthal eatery, Mannat Hotels, in obtaining favourable orders against highway hotels using similar brands and logos. LAW SB provides pre-adoption brand advisory and strategies on a regular basis, helping business ideate and develop a strong brand and a better protected trademark. Most IP firms keep a watch on the filings before various IP offices, which helps the brand maintain its distinctiveness and exclusivity as also avoid dilution and loss of reputation.

“Any action for infringement (or passing off) requires registration, strong proof of long, continuous and extensive use, evidence in support of enviable goodwill, which is associated with the brand. Business must have sound brand and IP strategy including brand manuals, regular caution notices, registrations in relevant classes and jurisdictions, well drafted IP clauses in contracts etc. which helps in maintaining the proprietary rights and exclusivity in the IP assets,” states Bhutoria.

Investing in a unique logo through the lens of IP protection

Brands are the identifications which help customers and consumers recognize and relate the quality and the people behind the products and services to each other. Since a lot of effort and resources are spent on building a brand, it is necessary that the brands are protected. In today’s competitive world is everything about brand identity, image and perception and having a strong and well protected brand, adds to power of the company/people who own the brand and of course a well-protected brand also translates into value and money and success, says Chandrima Mitra, Partner, DSK Legal. Sometimes instead of a full name or a word, a logo - a visual representation that instantly conveys the essence of the brand. However, as the recent case of Cognizant's logo dispute in India highlights, ensuring a company’s logo is truly unique and legally protected is no easy feat, Mitra states.

As per Mitra, it is essential to safeguard the brand assets through proactive measures. Before finalizing a logo design, companies must conduct thorough trademark searches to avoid potential conflicts with existing registered marks. Thereafter the next critical step is to register it as a trademark with the Trademarks office. Registered trademarks entail exclusive rights to use the mark and take legal action against unauthorized use, effectively deterring potential infringers. Evidence of prior registration can be used to demonstrate ownership and direct the infringer to cease from infringing. Conversely, if the logo is found to be too similar to an existing registered mark, the brand may need to consider modifying it to avoid confusion and potential legal battles.

Being vigilant about brand assets

Dhawan recommends conducting a thorough trademark search before finalizing a logo to ensure it doesn’t infringe on existing trademarks. This includes searching the country's trademark database, such as the Trade mark registry for India, using databases like WIPO (World Intellectual Property Organization) for international trademarks, and considering hiring professional trademark search firms that provide more extensive searches, including common law trademarks.

Mitra says that brands should continuously keep monitoring for potential infringement across platforms – online and offline. Conducting regular searches can help identify any instances of infringement as well. Whenever potential infringement is identified, immediate legal action should be taken to stop the infringement.

On the criminal side, similar sanctions come into play in cases of trademark violations in India. Applying a false trademark with intent to defraud is punishable with imprisonment up to three years and a fine up to two lakh rupees. This underscores the importance of taking infringement seriously and taking decisive action to protect your brand.

If a reputed well-known logo is unregistered, then passing off actions can be initiated against misuse of such brand or logo.