Trademark Infringement, Trademark Dilution, and the Decline in Sharing of Famous Brand Names: An Introduction and Empirical Study

Brauneis and Heald examine the phenomenon of shared brand names, examining whether trademark law changes have affected the frequency of businesses using identical or similar famous brand names. Famous brand names like Delta (Delta Airlines, Delta Faucets) and Everready were historically shared by numerous unrelated businesses in different sectors. The article presents an empirical study of brand-name sharing rates among 131 famous brands from 1940 to 2010, using data from white pages telephone directories in Chicago, Philadelphia, and Manhattan. Strikingly, independent uses of these 131 brand names by businesses other than those making the names famous declined from 3,000 to 1,380 between 1960 and 2010—a 54% drop. The authors evaluate five potential non-legal factors explaining this decline: economic changes, family migration, decreased brand attractiveness, changes in business name types, and changes in cultural naming patterns. However, they also assess whether increased trademark infringement protection and the introduction of dilution doctrine under the Federal Trademark Dilution Act contributed to the decline. The article argues that both legal and non-legal factors have likely played roles in reducing brand-name sharing, challenging courts and legislators to consider broader policy implications beyond protecting individual rights holders.

Topics: Intellectual Property · Corporate Law

Keywords: trademark dilution · Federal Trademark Dilution Act · brand-name sharing · trademark infringement · famous brands · doctrinal change · dilution protection