Intel on when to draw the line on infringement suits |

Intel on when to draw the line on infringement suits

© Cheryl Hodgson 2010 | Posted on June 8, 2010

It is not unusual for companies with famous marks such as “eBay” or “McDonalds” to file trademark infringement suits against competitors, especially when trying to avoid confusion in the marketplace. But the number and nature of suits filed by Intel, the world’s largest semiconductor company, leaves the impression that it is an overprotective bully, without knowledge that “intel” is common shorthand for the word “intelligence.”

Since 2008, Intel has filed infringement and dilution suits against at least 20 other companies (mostly small ones) for using the word “intel” in names and domains, even when there is obviously no similarity in goods or services or any possibility of consumer confusion.

Examples of recent suits include Intel’s infringement case against a jeans company with “intel” in its name and a travel agency by the name of Intellife Travel. Trademarks only cover specific areas of business, and because Intel sells microprocessors, not clothes or travel services, both of these suits were filed without consideration of basic trademark interpretation.

Most recently, Intel sued the operators of Mexico Watch, a political newsletter, for using the domain “LatinIntel.com.” Since Intel and Market Watch are in totally different businesses and even the most careless internet surfer would not confuse the two companies, Mexico Watch’s first motion to dismiss the complaint was granted. Intel filed an amended complaint a few days ago, but since it’s barely different than the first, and since the arguments within the complaint are not consistent with trademark law, it will likely be rejected again.

Intel’s recent string of unreasonable suits is a good lesson for large companies with the money to pay lawyers to bully smaller competitors (and even noncompetitors.) While it’s necessary and vital to protect your brand name from infringement and dilution, it’s also important to know when to draw the line to protect your reputation with the public.

Goodwill is an essential ingredient to the success of any company, and business owners should keep that in mind when deciding whether to file a lawsuit or not. Just because a company like Intel has the manpower and money to go after another company doesn’t always mean it should, especially if it makes them look like a bully, picking on the little guys.

I recently published an article on this subject in the latest edition of World Trademark Review. Apparently, trademark bullying is becoming all the rage with the big guys. Even Intel is now in on the action.

To read more about this topic, check out my article, "When Enforcement Becomes Bullying."