Trademark dilution and the practice of marketing

This article considers the marketing implications of the Federal Trademark Dilution Act (FTDA) of 1995. The FTDA, an amendment to the Lanham Act, will influence the manner in which marketing is practiced well into the twenty-first century. Although the FTDA is specifically concerned with protecting famous trademarks from being diluted—either by having their distinctiveness diminished or positive associations tarnished—by similar trademarks, its influence will not be limited to trademark or branding issues. Implications range from the allocation of advertising resources to the increased use of marketing research. Robert A. Peterson holds the John T. Stuart III Centennial Chair in Business Administration and the Charles E. Hurwitz Fellowship, both at The University of Texas at Austin. His Ph.D. is from the University of Minnesota. Dr. Peterson’s publications have appeared in such journals as theJournal of the Academy of Marketing Science, Journal of Marketing, Journal of Marketing Research, Journal of Consumer Research, andMarketing Science. His research interests range from Internet marketing to research methodology to marketing strategy. He presently serves on the boards of several for-profit and not-for-profit organizations as well as an advisory committee to the Bureau of the Census. Karen H. Smith is an assistant professor at Southwest Texas State University. Her Ph.D. is from The University of Texas at Austin. Dr. Smith’s research interests include consumer information processing, consumer knowledge structures (schemata), dilution of brand equity, and adolescent smoking. Her research has been published in theJournal of Consumer Research, Journal of Marketing Education, andAdvances in Consumer Research. Philip C. Zerrillo is executive MBA director at The University of Texas at Austin. His Ph.D. is from Northwestern University. Dr. Zerrillo’s research interests have focused on broad-based business innovation, strategic development of distribution channel arrangements, the value of brands in the distribution channel, managing brands as assets, and the legal aspects of branding and channel decisions. His most recent research on antitrust regulation appeared in theJournal of Corporation Law, a University of Iowa law review.