Starting a business is exciting — you’ve got the idea, the logo, maybe even the tagline. But there’s a hidden risk many founders overlook: trademark infringement. A wrong step in branding could pull you into legal trouble with companies that already own the rights to certain names, designs, or symbols.

In this blog, we’ll explore real trademark infringement examples, why trademark disputes happen, and how startups can avoid costly mistakes.

What Is Trademark Infringement?

At its core, trademark infringement happens when one business uses a brand name, logo, or symbol that’s confusingly similar to another’s registered trademark. It’s a breach of trademark rights because it creates confusion among customers.

Think of it this way: if people see your product and mistake it for another brand, you may already be crossing the line into brand infringement.

The USPTO defines trademark infringement as using a protected mark without permission in a way that confuses customers

Famous Trademark Infringement Cases

To understand the impact, let’s look at 5-6 trademark infringement cases that grabbed headlines:

1. Apple Corps vs. Apple Inc.

The Beatles’ record company sued Apple Computer multiple times for using the “Apple” name in connection with music. The dispute ended with a hefty settlement and shows how brand names in overlapping industries can cause long-term conflict.

2. Starbucks vs. Sambuck’s Coffee

A small coffee shop named “Sambuck’s” was forced to change its name after Starbucks argued it was too close and could confuse customers. This is a classic case of trademark violation where a large brand protected its territory.

3. Louis Vuitton vs. Haute Diggity Dog

Louis Vuitton sued a pet accessory company for making parody dog toys branded “Chewy Vuiton.” Though Vuitton lost (the court said it was a parody), the case shows how brands aggressively defend their marks.

4. Adidas vs. Thom Browne

Adidas sued designer Thom Browne over alleged dilution of its three-stripe mark, seeking up to $8 million in damages. A U.S. jury ruled in Browne’s favor, finding no consumer confusion. The UK High Court later invalidated several Adidas stripe trademarks, reinforcing Browne’s victory.

5. Jack Daniel’s vs. VIP Products (“Bad Spaniels”)

VIP’s parody dog toy mimicked Jack Daniel’s bottle. The U.S. Supreme Court held that parody defenses don’t override likelihood-of-confusion analysis in trademark law.

6. Nestlé v. Cadbury (purple color) 

Cadbury sought trademark rights to the distinctive purple shade (Pantone 2685C) for chocolate. The High Court initially approved it, but the ruling was overturned on appeal.

7. Ugg boots trademark dispute 

Deckers won when Koolaburra attempted to register “UGG” as generic. Courts affirm that “UGG” is a brand, not a generic term, highlighting brand dilution issues.

8. Adidas vs. Steve Madden (2025) 

Steve Madden preemptively sued Adidas to continue selling shoes with two-band designs, pushing back on Adidas’s aggressive stripe enforcement. The lawsuit is ongoing.

 

These trademark disputes teach startups an important lesson: even if you’re small, big companies won’t hesitate to protect their IP.

Case Comparison Table

Here’s a quick comparison:

Case Parties Involved Outcome Lesson for Startups
Adidas vs. Thom Browne Adidas vs. Thom Browne Jury & UK courts ruled in Browne’s favor; some Adidas trademarks struck down Bold designs that don’t confuse consumers can prevail.
Jack Daniel’s vs. VIP Jack Daniel’s vs. VIP Products (dog toys) SCOTUS ruled parody doesn’t bypass infringement standards  Parody doesn’t guarantee protection if confusion exists.
Nestlé vs. Cadbury Nestlé vs. Cadbury Purple trademark initially approved, then overturned  Color can be trademarked—but must be precise and distinct.
Budweiser dispute Anheuser-Busch vs. Budvar Split territorial rights on “Budweiser”  Establish clear geographic scope in trademark strategy.
Ugg boots case Deckers (UGG) vs. Koolaburra Courts found “UGG” remains a brand; not generic  Monitor genericide risk—protect your brand’s name.
Adidas vs. Steve Madden Adidas vs. Steve Madden Steve Madden sued to affirm right to two-band designs  Prepare to push back when dominant players overreach.

Authority Signals & Cost Insight

IP litigation can be costly — even for startups. Legal costs typically range from $120,000 to $750,000 depending on complexity, jurisdiction, and whether a jury trial is involved. Investing in early IP strategy can be a fraction of that cost.

For guidance on trademarks and to access official resources, check:

  • USPTO (U.S. Patent and Trademark Office)
  • World Intellectual Property Organization (WIPO)
  • Court rulings via PACER, Westlaw, or official court sites

Integrate NLP Variants

Let’s explore some key terms:

  • Cybersquatting: Registering a domain name identical or confusingly similar to an established brand to profit from resale or traffic. 
  • Trade dress infringement: When the overall look and feel of a product or packaging (like Coke’s contour bottle) is copied to cause confusion. 
  • Brand dilution: When use of a similar mark reduces the uniqueness or value of a famous brand (e.g., excessive use of “UGG” generically). 
  • IP litigation costs: Legal fees and associated expenses—often six figures—that startups should factor into risk assessments. 
  • Parody defense in trademark law: A possible shield for satire or parody, but as seen in Jack Daniel’s case, it only applies when there’s no source confusion.

Trademark Violation vs. Copyright Infringement

A lot of founders confuse the terms. Here’s the simple breakdown:

  • Trademark infringement → Misusing logos, brand names, or slogans. 
  • Copyright and trademark infringement → Copyright deals with creative works (books, music, designs), while trademarks cover brand identifiers. 

Both can cause legal trouble, but trademark cases are particularly dangerous for startups because they strike at your brand identity. 

Confused between copyright and trademark? Our copyright vs trademark vs patent guide breaks it down.

Common Trademark Infringement Examples Startups Overlook

  1. Similar sounding names – Like “Sambuck’s” vs. “Starbucks.” 
  2. Look-alike logos – Colors, fonts, or designs that mimic another company. 
  3. Copying product packaging – Similar bottle shapes or labels can be seen as a breach of trademark. 
  4. Domain name misuse – Registering domains that look like famous brands. 

These may seem minor, but they can lead to lawsuits that drain money and reputation.

How Startups Can Avoid Trademark Infringement

How Startups can avoid Trademark infringement in 4 easy steps
 
  1. Early trademark search and distinct branding—avoid brand infringement before it starts. 
  2. Register all unique elements—logo, color, shape (trade dress), slogans. 
  3. Monitor market activity, including domain registrations (guarding against cybersquatting). 
  4. Audit for brand dilution—like threats of genericide—or enforce corrective action. 
  5. Use caution with parody or homage—understand the limited scope of parody defenses. 
  6. Budget for potential litigation—ensure your IP strategy considers IP litigation costs.

According to the World Intellectual Property Organization, ongoing monitoring and enforcement are critical to protect trademark rights. Use proactive monitoring tools — see our trademark monitoring guide for strategies.

What to Do if You’re Accused of Infringement

If you ever get a legal notice:

  1. Stay calm and get legal advice. Don’t ignore it. 
  2. Evaluate your brand. Is the mark too close to theirs? 
  3. Negotiate or rebrand if necessary. Sometimes, it’s cheaper to pivot early than fight in court.

Lessons for Startups from Trademark Disputes

  1. Prevention is cheaper than litigation. A search and registration cost far less than a lawsuit. 
  2. Don’t underestimate big brands. They’ll act on even small trademark violation cases. 
  3. Protect your identity too. Once your startup grows, you’ll want to stop others from copying you.

For a startup-focused roadmap, check our trademark tips for startups

FAQs – Quick Answers

  • How to avoid trademark infringement?
     Do thorough searches, choose unique branding, and register trademarks early. 
  • Big companies that have sued for intellectual property?
     Apple, Starbucks, Nike, Louis Vuitton, and Coca-Cola have all filed suits. 
  • Define trademark infringement.
     Using a brand’s protected logo, name, or design without permission in a way that confuses customers. 
  • 3 intellectual property violation examples?
     Trademark infringement, copyright infringement, and patent infringement. 
  • What are two examples of a trademark?
     The Nike swoosh and Coca-Cola’s script logo. 
  • What are the 4 types of trademarks?
     Word marks, logos (design marks), slogans, and trade dress (like packaging). 
  • Where does Coca-Cola come from?
     Atlanta, Georgia, USA, in 1886. 
  • How to win a trademark infringement lawsuit?
    Show you registered first, prove the similarity creates consumer confusion, and document damages.

Conclusion

Trademark disputes aren’t just for Fortune 500 giants—they can derail startups too. By studying trademark infringement examples and learning from high-profile trademark cases, founders can protect their businesses from costly mistakes.

Trademark law isn’t just about what’s legal — it’s strategic. From stripes to dog toys, purple chocolate wrappers to beer wars, each trademark case teaches startups the importance of originality, vigilance, and smart legal planning.

If you’d like help building a trademark roadmap tailored for your startup, reach out — our Emanus team, led by experienced IP attorneys, is here to guide you.