Intellectual property violations are things like trademark infringement or patent infringements. For instance, a company may begin making knockoff products, portraying them as authentic in order to get consumers to purchase them.
On one hand, this certainly can harm a company‘s bottom line. They may miss out on sales. Consumers who are looking for the authentic product could inadvertently buy the knockoffs. Other consumers may intentionally choose the knockoff products if they’re being sold at a lower price point.
But it’s not just the immediate financial harm of lost sales that businesses have to consider. There are also ways in which IP violations can harm a brand’s reputation, which could have long-term ramifications.
Lowering consumer trust
The issue is that brand loyalty is often connected to consumer trust. When people trust a company to make products or services in a certain way, they’re more likely to be repeat buyers.
But an infringement could be problematic if the buyer doesn’t even know that they have a knockoff product. They may believe that they have an authentic version, which isn’t up to their standards. For instance, maybe they buy a watch that they believe is from a premium brand, but it stops working in the first year. The consumer says they’re never going to buy from that brand again—all without knowing that they never did in the first place.
For both of these reasons, businesses that are facing IP violations need to know about the legal steps they can take to seek solutions. If your company is in this position, it may help to have experienced IP lawyers on your side.
