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Legal Definitions - channel of trade

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Definition of channel of trade

A channel of trade, also known as a distribution channel, refers to the various routes through which a manufacturer or distributor markets their goods. It is a path that a product takes from the manufacturer to the end consumer.

For example, a clothing manufacturer may use different channels of trade to sell their products. They may sell their clothes through their own retail stores, online stores, or through department stores. Each of these channels of trade represents a different way for the manufacturer to reach their target market.

In trademark law, the use of identical or similar marks in the same channel of trade can lead to consumer confusion. For instance, if two companies use similar logos and sell their products through the same distribution channel, consumers may mistake one company's products for the other's.

Overall, understanding the different channels of trade is important for businesses to effectively market and distribute their products to their target audience.

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Simple Definition

Channel of trade: A way for companies to sell their products to customers. It's like a path that the product takes from the manufacturer or distributor to the person who buys it. Sometimes, if two companies use the same channel of trade and have similar names, it can be confusing for customers.

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