Tiger Woods, Goldman Sachs ... Some mighty brands have hit the rough recently, with resulting speculation as to how this type of publicity has impacted on the commercial value of the brands. In this article, we talk about some more common ways in which brand value can be eroded.

At the best of times, brand values are hard to estimate. When things are not going quite so well, there may be a few more tools available to help calculate the impact on the brand. The drop in an auto-maker's share price following a recall might provide a means to measure the drop in the brand's value. Similarly, the impact on Tiger Woods' brand value could be measured by the value of lost endorsements following the much publicised scandals. These are dramatic examples of venerable brands losing brand equity.

There are much more common, yet equally hazardous, ways in which brand equity may be eroded - perhaps made even more dangerous given their gradual and subtle nature. Brands are like automobiles, dent and damage them enough, they will cease to work.

How could this happen?

The improper use of trade marks can lead to brand 'genericide'. ESCALATOR, ZIPPER, TRAMPOLINE, ASPIRIN, KEROSENE, LINOLEUM were all once famous trade marks belonging to proud proprietors. They are now mere generic names of products stripped of trade mark rights and relegated to cautionary tales of improper trade mark usage.

The consuming public no longer attribute ESCALATOR to Otis Elevator Co. It is just a moving staircase. Or ZIPPER to B.F. Goodrich Co. Rather a zipper is just a device for temporarily joining two edges of fabric. Both brands fell into generic usage through years of being allowed use as descriptors for their products, so much so that they became the common, 'generic' name for the respective products. Significantly, Otis Elevator Co. was found, in a US court case, to have lost its trademark rights to ESCALATOR due to its generic use of ESCALATOR in its advertising and patent applications.

How to avoid brand genericide?

Companies need to thoroughly educate their employees, and their customers, that the company's trade marks are proprietary rights. Programs need to be introduced to educate all who come into contact with the company's trade marks about proper trade mark usage, practical examples of which include:

  • Always put your trade mark in the spotlight by distinguishing it from the surrounding text by using, for example, CAPITALS or a different colour or font - and be consistent about the chosen usage.
  • Your trade mark is an adjective. Not a noun nor a verb. So, always follow your trade mark with a generic term, i.e. the common descriptive name of the product. For example, KLEENEX tissues, XEROX photocopier, FEDEX courier, ROLLERBLADE inline skates.
  • Do not use your trade mark as a verb.
  • As an adjective, a trade mark should not be used as a plural or in the possessive form unless the mark itself is registered in a possessive form.
  • Use appropriate trade mark symbols ® or ", at least the first time the trade mark appears.
  • 'Put on your RAY-BANS', 'FEDEX the package', 'give me a KLEENEX', are all incorrect usages of trade marks.


A trade mark can last forever as long as you take care of it. Using a trade mark properly is crucial in any brand protection program.

Our award winning IP/IT team regularly undertakes intellectual property audits. This can involve assessing current brand usage, and making recommendations to help develop iconic brands that are legally robust, and to get the best value out of trade mark portfolios.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.