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Is the Johnson & Johnson / American Red Cross trademark infringement issue the ultimate brand protection case study?
In every conflict, there are heroes and villains. But in the latest match-up between two branding giants, identifying who's the good guy and the bad guy is not that easy. The protagonists in this battle of the brands: baby-products-and-Band-Aid behemoth Johnson & Johnson versus America's premier charitable organization, the American Red Cross.
The crux of the conflict? A century-old trademark issue on who can use the life-saving emblem (red cross on a white background) and where and when it can be used. Apparently, both organizations have held separate and distinct rights to the use of this famous symbol. J&J claims that in a deal with the ARC signed in 1895, Johnson & Johnson was to have exclusive rights to use the red cross design on its commercial products while the American Red Cross possessed only the rights to use it in relation to its nonprofit relief services. Now, J&J alleges that the ARC has suddenly breached these legal boundaries and has licensed the mark to makers of humidifiers, toothbrushes, emergency supply kits and other products in direct competition to J&J.
The Red Cross response? The lawsuit is "bizarre" and "obscene." Johnson & Johnson is basically a corporate ogre looking to rake in even more profits. And the Red Cross is just reinvesting the money derived from the sale of the logo-bearing consumer products back into its humanitarian programs.
So, is this a case of a corporate bully trampling all over a well-loved charity in pursuit of profits? Or of an organization pulling our heartstrings as it violates and infringes on a hundred-year-old trademark agreement?
As with all conflicts, people have taken sides fast. Those in the J&J corner claim that the healthcare conglomerate has every right to protect itself and its profits. Supporters of ARC say that the lawsuit could be a public relations nightmare for J&J and that there's nothing wrong with the Red Cross finding new ways to raise funds.
For brand protection professionals in both big and small business, this issue simply underscores the vital importance of our branding assets. What the courts decide will have a big impact on how we go about managing, enhancing and protecting our brands.
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