You haven’t done anything wrong if someone has infringed on your trademarks and other types of intellectual property. But it can still have a negative impact on the reputation of your brand.
This is often why it’s important to pursue legal action if someone is misusing your trademarks or creating counterfeit products. This practice can devalue your own products and services, and it is possible that your company could lose a lot of value if you don’t take action.
Going beyond the actual sales
You might first start thinking of lost revenue because this company that has infringed on your trademarks is now taking customers that you may have gotten otherwise. And this can be the first way that you start losing money and a solid reason to take legal action all on its own.
But this is about more than sales. It’s also about reputation. If another company is making products that appear to be yours or offering services that appear to come from you, and these are not up to your own standards, then your customers are going to be disappointed in what they receive. They may never know that they have been tricked, and they may assume that your products are simply not as good as they actually are.
Another problem can happen when counterfeit items become so common that people start to question the validity even of your real products. This can make it hard to sell actual items that are fully legitimate, all because someone else has decided to infringe on your rights. For all of these reasons and more, just make sure you know what steps to take if this has happened to your company.