Small businesses riffing on/appropriating trademarks from big business: What gives?

What makes small business owners think they can get away with essentially stealing trademarks that belong to major, well-known companies, just by changing them slightly?

Examples just from my town:

The first one, I only heard about, and may have been unintentional. There was a local “foreign car” garage that specialized in European cars. Their name was two words, both starting with the letter “M”. They apparently received a cease-and-desist from Mercedes-Benz because the “M” too closely resembled the “M” in the Mercedes trademark. They simply changed the typeface on their sign, and all was good.

More recent, more blatant examples I’ve seen myself are:

A small Mexican restaurant opened up downtown. It was named “Chile’s” and their sign was clearly, um, “inspired by” (read: was almost identical to) the look of the Chili’s restaurant chain’s logo. That place was shut down fairly quickly. (I’ll note that we don’t have a local Chili’s.)

A local pet supply store opened up, and called itself, “Beds Bones & Beyond”. Again, quickly out of business.

And now, the local natural foods store has added on a small cafe, and the lettering on the window proudly proclaims, “Hot Eats and Raw Treats”, clearly a minor modification of Dairy Queen’s “Hot Eats, Cool Treats” slogan.

What is going through these peoples’ minds when they come up with this stuff? I know there’s a popular misconception that you can get around copyright law by changing 5%-10% of the original material, but even if that’s what these people are thinking, these are trademark issues, which are completely separate from copyright.

“They have the Golden Arches, I have the Golden Arc.”

:smiley:
ETA: Reported for forum change.

They aren’t lawyers, and they very likely don’t understand IP law (and they almost undoubtedly didn’t consult a lawyer before proceeding, either). They probably think that a minor change is enough to protect them, and they probably also believe that the big company isn’t going to bother with coming after some little mom-and-pop outfit.

They are, obviously, incorrect.

I don’t know if they actually expect to get away with it - they might consider it worth a shot even if it fails, cost of doing business etc etc.

That, or the fact that there’s no intelligence test required for starting a business. :slight_smile:

Since the OP is asking for opinions, let’s move this to IMHO.

Colibri
General Questions Moderator

There used to be a burger place on the Panamerican Highway here in Panama named “McPato’s” that had a Disney-style cartoon duck as a logo. (Pato means duck in Spanish.) It always amused me that they were plagiarizing not one but two of the fiercest defenders of trademarks in the world.

There’s a department store here called “Saks” that has nothing to do with Saks 5th Avenue. There used to be one called “Blummings” that was imitating Bloomingdale’s.

I’m sure they all depend or depended on US based businesses not finding out or wanting to take the trouble to do something.

There was a small coffee shop near me called “McCoffee”. McDonalds told them they had to change their name (which seems ridiculous to me; no one could possibly confuse this place with a McDonalds restaurant, based on either the name or the appearance; does McDonalds think they have rights to any name beginning with “Mc”?). They changed their name to “M Coffee”, dropping the first “c”, and apparently that satisfied McDonalds. So I guess in some cases, small changes are sufficient.

This was the logo for a chain of convenience stores in the Southeast. Something about it looks vaguely familiar. . . .

As someone who does some small business consulting on the side, small business owners generally aren’t all that great on the business side of things*. They may be great kitchen managers, teachers, mechanics, more… but their ignorance of the business side of things is what kills them in the end. Many times it’s a literal race to educate people about what they are doing before they go bankrupt.

*I’m being kind here.

I don’t think the “business quickly shut down” is necessarily related to their name. It’s not Chili’s can come in and close your restaurant. Usually what happens is the business sends a cease and desist to get the name/logo changed, and if it doesn’t it goes to a lawsuit. But that’s a long process.

McDonalds has always been particularly vigilant and aggressive about defending its trademarks and other IP (as running coach alludes to :slight_smile: ). And, IANAL, but my understand is that part of what keeps IP legally protected is if the holder of the IP actively defends themselves against infringements (intentional or not) – “aspirin” is the poster child case of this (though Bayer still holds it as a trademark in some countries, though not in the U.S.)

As McDonalds puts a “Mc” in front of a lot of food names and concepts (including McCafe coffee), in this case, they probably did have a reasonable claim against your local shop.

That said, there have certainly been times when they’ve overreached on it. When I was a teenager, they went after a local restaurant in my home town (Green Bay) that was named McDonald’s, and they even claimed that his sign mimicked their Golden Arches (it had a sort of curved arrow on it). When his lawyers responded that, not only had the restaurant been in business for decades (long predating the McDonalds chain), but his sign predated them, as well, the suit was dropped for lack of merit.

Exactly – and that’s when the small business’s lawyer will be advising them, “change the name right away, or this will get very expensive, very quickly.” Even McDonalds doesn’t usually (if ever) try to force the small business out of business – they just want them to stop misappropriating their name.

Wasn’t the Bayer thing a WWI punitive reparation?

I don’t know the situation, no copyright infringement may exist, but there is a local pizza chain with 5 locations. Almost exact same logo. They have 2 websites that only acknowledge the existence of 3 and 2 of these locations, respectively. There is also a separate website for another location (same logo, no acknowledgement) that is over 500 miles away. Similarly, there was a video store that had locations both here and where I grew up, 200 miles away. Not sure if that one was the same owners though as defunct video stores are hard to research.

Most of your examples are pretty straightforward, but I don’t get this one. While everybody knows the famous 3-points-in-a-circle Mercedes-Benz logo, the company name just looks like good old Times New Roman to me. They really threatened to sue over one of the most popular fonts on the planet?

Hmmm…a little more googling indicates that this was the case (and that the business texts I had in college hadn’t told the full story). And, in fact, the Wikipedia entry on the Aspirin brand name doesn’t mention the WWI issue.

Better examples of formerly trademarked names that their owners lost due to them becoming generically used are cellophane and escalator.

I also specifically recall Xerox magazine ads, in the 1970s and 1980s, reminding people that Xerox was a brand name, and that it’s “photocopying,” not “xeroxing.”

One of thesemaybe???

Bayer page mentions it.

There’s a chain of electronics/appliance stores around here called ABC Warehouse. For some reason, ABC Warehouse Utica is not affiliated with them (anymore, at least), despite the name and being in the same business. In each of these cases it may be that there were originally two owners, they grew to more than one store, one owner thought of one (or more) stores as “his”, and when they went separate ways in business, they kept which stores were “theirs” as separate entities as opposed to liquidating the entire company when it had to break up.

Did they sell duck burgers?

Locally I know of a bar that has Elmer Fudd on its sign, and some maintenance business (plumbing or AC or such)with the Pink Panther on its trucks.

I suspect that the thinking is usually something like “Oh, people love <other business>, so let’s make it look like we’re them!”. Which is, of course, exactly the situation that trademark law is meant to prevent. I guess that they never think as far as “…but we’re not allowed to do that”.

I’m a professor of Marketing and Business management and teach about this, the way Kenobi 65 explains it is correct:

The simplified non-legal version is that a company must always defend their trademark. In every single instance they are made aware of they must try to stop the offender from infringing. If they don’t, they suffer a risk they will lose the trademark in future should they then choose to defend it. Put another way, they can’t pick and choose when they do or don’t defend their trademarks.

In the example of McCoffee, one could argue that “it’s only one small coffee shop, no big deal” and McD’s are nice guys and take a pass and allow them to use McCoffee - Scenario 1: someone is poisoned by e-coli laced beans, think of the publicity nightmare for McD’s and the possibility of lawsuits “We thought it was McDonald’s…” Scenario 2: McCoffee is a single shop now and next year expands nationwide with 1500 new franchise locations. McD’s is screwed,“Sorry, you already made the decision to not challenge them…”

In the example of the car repair: Using a company’s logo like that implies the service location is affiliated/ authorized and at the least has technicians trained by the logo’d company. The service station I go to has Audi, MB, Porsche logos on their sign, their techs are all sent to training programs (sadly, I only have a Toyota). If they’re not afflicted or certified but still using a logo (or similar logo), imagine the worst case scenario: someone gets their car repaired at the “MB” shop and the family dies in a fiery crash because of a bad repair. The family sues, “We saw your logo on their sogn and we thought they were authorized by you. Wait…you knew they they were lying about being certified and you did nothing!!!” Good luck winning that one.

Why do small businesses do this? Usually for free press. It’s not uncommon to see headlines or local TV news stories about “Local small business owner takes on corporate Goliath”