Generally, consumers relate the trademark of a particular company with the quality of products and hence draw conclusions about the reputation of the company. Trademarks grant the right to the owner to prevent another company from using deceptively similar marks that might create confusion in the minds of the customers.
Trademark is basically an identification mark of the company and trademark infringement occurs when another company uses the trademark that is similar to the registered trademark for the purpose of selling or marketing similar goods. The period of limitation for filing a suit for trademark infringement is three years from the date infringement occurred.
If any company is using the registered trademark of another company without their permission; this act may cause damage to the brand name of that company. This company willingly wants to use the brand name and the market reputation of a famous trademark to increase the sales of its own company. The quality that the consumers associate a particular trademark with might drop down and this would cause severe damage to the image of that company.
A suit for trademark infringement can be filed by the owner of a registered trade mark or Legal representatives of the deceased proprietor, or one of the joint proprietors. The registered user of a trade mark is also eligible to file a suit for infringement if upon a notice to the registered owner; the registered proprietor fails to take any action.
The main issues to be decided in a suit for infringement are whether the use of a trademark by another company would constitute infringement, whether it would cause confusion in the minds of consumers, the extent of damage caused and the reliefs that could be claimed.