Legal Definitions - reverse confusion

Reverse confusion is a term used in trademark law to describe a situation where consumers are likely to believe mistakenly that the trademark owner's products are actually those of the infringing company. This confusion is usually caused by widespread advertising and promotion by the infringing company.

An example of reverse confusion is when a small company with a well-known trademark is overshadowed by a larger company with a similar trademark. For instance, if a small company named "ABC" sells a product with a trademark "ABC," and a larger company named "XYZ" starts selling a similar product with the same trademark "ABC," consumers may believe that the product is from the larger company, not the smaller one.

Another example is when a well-known brand is used by a lesser-known company to promote its products. For instance, if a company named "XYZ" starts using the trademark "Nike" to sell its products, consumers may believe that the products are from Nike, not XYZ.

These examples illustrate how reverse confusion can harm the reputation and goodwill of the trademark owner, especially if the infringing company is larger and has more resources for advertising and promotion.