Federal Trademark Dilution Act

The Federal Trademark Dilution Act is a law that protects famous trademarks from being weakened or diluted by uses that are not confusing but may harm the brand's reputation. If a company uses a similar mark, even in a different industry, it might dilute the distinctiveness of a famous trademark, like Coca-Cola or Nike. This law allows the owner of a famous trademark to take legal action against such uses, even if consumers aren’t confused about the source of the products. Essentially, it aims to preserve the unique identity of well-known brands.