Question
We want to register a name for our startup and use a similar name to our competitor. What is the legal issues with this strategy? For example, say it's a business for hotels and guest houses (only example, our product is other). And we call it "flairBnB" and register flairBnB.com. On one hand we get many visitors and customers would recognize the name. So we can piggyback of the competitor's name. But this is the same business so would the competitor be successful for trademark lawsuit? What is the legal issues with this strategy? What strategy would you advise?
Answers: 3 public & 0 private
In addition to what my colleagues said, based upon your fact pattern you could also be liable for WILLFUL trademark infringement which carries a far more severe penalty - treble damages or 3x the amount of actual damages determined by the court - not to mention a possible award to the plaintiff for their attorneys fees in bringing the lawsuit against you. What you are describing is precisely what is outlawed in trademark law and if you get caught, you could face serious consequences that will make you really regret "piggybacking on your competitor's name."
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