Does the Internet threaten brands?

Although the Internet offers small companies a global platform it also provides new challenges to Intellectual Property according to a recent report.

The report by patent and trademark attorneys Marks & Clerk highlights concerns by brand owners across a number of infringement opportunities that have become possible due to the Internet, are difficult to police and where law in the digital space has yet to catch up. IP issues that undermine legitimate brands operate at a number of levels.  

The Internet has provided new distribution channels for counterfeit goods with leading auction sites playing an important role. It is no longer the case of buying something that had 'fallen of the back of a lorry' or 'from a man in the pub', instead a degree of apparent legitimacy is bestowed thanks to the branding of the channel itself. At another level editorial content is freely stolen and images used outside of the company control. Of course getting widespread publication of attributed editorial is a good brand building thing, but being plagiarized to promote rival products or counterfeit goods is another matter entirely.

According to the report, "63 per cent believe that search-advertising such as Google AdWords is unacceptable when businesses bid on the name of a rival’s trade mark" and "Almost 7 in 10 (69 per cent) predict that social media will become the “next big threat” to brand owners in protecting their brands online". So the threat is not just from counterfeiters and forgers, but from otherwise legitimate competitors using the Internet to ride on the back of their rivals investment in marketing.

Then of course there are disgruntled customers and users who can exploit the Internet to not just air a grievance but conduct campaigns and rally support.  Social media has been extolled as a channel for companies to converse with their customers but for most b-2-b businesses it is very early days. Some - a few - have embraced sites like Facebook, while others won't even entertain the idea. Marks and Clerk's report notes, "With Facebook reportedly having the world’s ‘third largest population’ – more than 400 million users, compared to a population of just over 300 million in the US – it is little wonder we are seeing increasing protectionism and nervousness from brand owners.” 

From our experience in social media it is difficult to point to concrete benefits either, except getting picked on search and generating useful links. This will be the subject of a future blog.