Registration, infringement, competition and markets under the New Zealand Trade Marks Act 2002

Abstract

The traditional rationale for the legal protection of trade marks is that trade marks protect consumers from con fusion and reduce consumer search costs in the market place. Producers use trade marks to distinguish their goods and services from the goods and services of their competitors. Facilitating competition is therefore a fundamental, underlying principle of trade mark law. Trade mark protection provides incentives to producers to invest in consistency and quality, which benefits consumers. Trade marks thus have origin, guarantee and investment functions. They are indicators of trade source, they serve as guarantees of quality, and they provide a mechanism and incentive for investment in advertising and promotion.