How are trademarks established in the United States and abroad? What are some of the difficulties faced by firms regarding the protection of trademarks? Explain with an example

What will be an ideal response?

In the United States and a number of other countries, firms acquire rights to trademarks through first use and continuous usage. However, in others, rights to trademarks are acquired through registration with government authorities, and many countries require local use of the registered mark to maintain the registration. When a firm registers its trademark, it formally notifies government authorities that it owns the trademark and is entitled to intellectual property protections. The convention of gaining ownership to a trademark simply through registration has caused concerns for many firms. For example, McDonald's was frustrated to learn, when it wanted to enter South Africa in 1993, that a local trader had already applied both to register the McDonald's trademark for his own use, and to have the company's rights to the trademark withdrawn. The South African Supreme Court actually ruled in favor of the local entrepreneur. McDonald's eventually won on appeal but only after spending a significant sum in legal fees.

Business

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