Most brands, or trademarks, have considerable value, sometimes in the billions of dollars. Trademarks protect entrepreneurial success and help prevent confusion among consumers. Trademarks can be lost through a process known as 'genericide.' Genericide occurs when the trademark holder does not closely monitor unauthorized use of the brand. The holder then loses the right to the exclusive use of the trademark. More often than not, financial disaster ensues. Ironically, the trademarked goods and services most at risk of genericide are those with the greatest popularity and market share. Fortunately, however, many weapons exist to prevent genericide, including selecting a distinctive, non-generic name when introducing the product; monitoring employees' and advertisers' use of the trademark; keeping track of how competitors and others use the trademark; and thinking carefully before Licensing the trademark. Trademark holders should assign the highest priority to monitoring intentional and negligent actions by in-house employees, competitors, and third parties to prevent the heartbreak and devastating consequences of genericide. (C) 2012 Kelley School of Business, Indiana University. Published by Elsevier Inc. All rights reserved.
