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November 15, 2007

RIM and trademarks - Imitation Is The Sincerest Form of Flattery???

Analysis of: RIM sues LG over phone names | www.theglobeandmail.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
P.J. Louis
President, PJ Louis LLC
Implications: It is said that “imitation is the sincerest form of flattery”. It is also said that great minds think alike. However, it seems pretty obvious that LG Electronics was taking advantage of the brand that RIM built for its Blackberry. Then again, maybe LG got it wrong and it is not the word blackberry or berry that is getting everyone’s attention. Maybe it’s fruit. The bottom line is that a company’s trademark is its brand.

Analysis:

After some period of time, all telecom products tend to act and look alike. The rule being that eventually everything seems to be performing the same functions, hence, the need to gain a foothold in the marketplace as early as possible. Part of capturing the marketplace is establishing a brand name for the product.

RIM has the Blackberry. Frankly the name never the name never made any sense to me but it is “catchy sounding”. Of course, there are going to be companies that will use various fruit sounding names; with the hope being that you will subconsciously think Blackberry.

There is a fine line between imitation and outright infringement. That line is unfortunately pretty fuzzy. LG might have considered going the route of geological formations and started their own trend. I recommend that LG use names like: “Emerald”, “Ruby”, “Onyx”, “Gem”, “Granite”, “Quartz”, etc.

Even better, LG’s original name was Lucky Goldstar. LG could even start a trend with astronomical names like: “Jupiter”, “Mercury”, “Goldstar”, “Milky Way”, “Mars”, etc.

You cannot blame RIM. Then again, Apple has not sued Google over the gPhone. Lawsuits can be used to obtain compensation for damages, make money, or plain vengeance. Sometimes companies look to be sued in order to gain publicity. Of course, there is the flipside where companies and individuals sue in order to gain publicity for themselves.

For RIM, controlling everything about their company is critical. RIM does not own the key intellectual property that made them who they were. NTP, the true owner of the patents is currently suing carriers and other vendors for infringement. If the courts do the right thing, they will rule in NTP’s favor; resulting in licensing fees being paid to NTP.

As for RIM, without intellectual property rights (patents), all they have is their name. For RIM, imitation is not the sincerest form of flattery.



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