Question

AVCO used a famous registered trademark of BNC, Inc. in a manner that reduced its value. This is a violation of the _____________.

1) Federal Fair Use Act
2) Federal Trademark Dilution Act
3) Federal Trade Protection Act
4) Cleveland/Myer Act

Answer 1

The use of a famous registered trademark by AVCO in a way that reduced its value is a violation of the Federal Trademark Dilution Act, which protects famous trademarks from unauthorized use that could dilute their distinctiveness or damage their reputation.

Step-by-step explanation:

If AVCO used a famous registered trademark of BNC, Inc. in a manner that reduced its value, this is a violation of the Federal Trademark Dilution Act. The Federal Trademark Dilution Act specifically protects famous trademarks from unauthorized use that could diminish or tarnish their uniqueness and value, regardless of the presence or absence of consumer confusion, which is the typical standard for trademark infringement.

Trademark dilution can occur in various forms, including blurring (which weakens the association of the trademark and its products) and tarnishment (which harms the reputation of the trademark). Businesses must ensure that they use trademarks properly to avoid infringing on the rights of registered trademark holders.