When parties are dealing with a trademark dispute, it is usually advisable to consider settlement options, as litigation can be incredibly costly and lead to uncertain outcomes. Furthermore, when parties settle a trademark conflict, they can create a tailored agreement that addresses their specific needs, helps keep good relations between the parties, lowers the risk of obtaining an unfavorable ruling, and enables them to resume day-to-day operations without much interruption.
The Different Settlement Options
Although parties have become more creative when it comes to finding resolutions in trademark disputes, some options are used more frequently than others.
A Negotiated Resolution
A negotiated resolution generally involves direct discussions between a trademark owner and an alleged infringer. The goal of these negotiations is to reach a settlement, which may involve the exchange of money for the use of the trademark. The benefit of this settlement option is that it can be cost-effective and allow for the preservation of amicable relationships, which is important if there is a chance for further business collaborations.
A Licensing Agreement
A licensing agreement is a legal, written contract between two parties where the property owner permits another party to use their patent, trademark, or brand. The agreement, which is usually set between the trademark owner and the alleged infringer, contains details on the type of licensing agreement they are entering into, the terms of use, and how the trademark owner will be compensated.
While these agreements will vary depending on the situation, generally, this settlement option allows the alleged infringer to continue using the trademark in a limited but legal capacity. As a result, both sides can benefit from the agreement, and it can help alleviate any disputes regarding quality issues and royalties.
A Co-Existence Agreement
A co-existence agreement may be similar to a licensing agreement. However, the details of the agreement tend to be more comprehensive since they include more specific information regarding the industries, locations, and marketing methods that both sides can use.
With a co-existence agreement, the general consensus is that both brands can co-exist peacefully while still preventing a likelihood of confusion for the consumer. These co-existence agreements are often used in scenarios where there are two trademark owners who have similar or identical trademarks.
Amending the Trademark
Another way to settle a trademark dispute is to amend the trademark. However, the party that intends to modify their mark needs to make sure they do not substantially alter it, as a new trademark application will need to be filed in these situations.
Contact FortmanSpann Today to Review Your Settlement Options When It Comes To Trademark Disputes
Trademark disputes can lead to complex legal battles that are long and expensive. However, settlement options can help move this process along, allowing alleged infringers and trademark owners to find mutually beneficial solutions to their problems. These settlements not only help control the outcomes, provide timely resolutions, and preserve relationships but also help keep costs down.
If you are looking for further information regarding settlement options when it comes to trademark disputes or want to ensure that you create a settlement agreement that is fair to you, contact FortmanSpann, LLC today and schedule a consultation with our legal team.