The concept of ‘neutralization’ is becoming a general principle rather than an exception to the rule. This can be detrimental to owners of trademarks, even famous trademarks.
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A consumer can sue the trademark owner for a defect in the trademarked product, even if the product clearly states that another company is the producer. This is because the consumer may infer from the reference to the trademark on the product that the trademark owner is involved in the production process or assumes responsibility for it.
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The owner of an older trademark can have a later registered conflicting trademark declared invalid. The registration of the younger trademark does not function as some kind of approval allowing for undisturbed use of this younger trademark: the older trademark owner can still take action against it after the younger trademark has been registered. But the older trademark owner should not wait indefinitely. If he becomes aware of the younger registration and the use, he has five years to act against the younger trademark registration or the infringing use. Is sending a letter sufficient as an action?
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