What is Penalty for infringing on a trademark?
Nexa Consultancy | Startup & Finance Glossary
Trademark infringement can lead to a civil lawsuit where the infringer may have to pay damages to the trademark owner and stop using the mark. In some cases, it can also lead to criminal proceedings with imprisonment and fines.
Startup Example: A new startup uses a brand name that is deceptively similar to an established competitor. The competitor sues them for infringement, forcing the startup to undergo a costly rebranding exercise and pay damages.
We advise on trademark searches as part of our Business Setup process.