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IP Issue Spotting – Potential Pitfalls with Graphic Design Services

By: Paula I. Brueckner and Abigail J. Remore

A strong, distinctive logo is important for brands to distinguish themselves from competitors. Logos can be a valuable trademark that tells consumers the source of products or services and, ideally, communicates that the source is trustworthy and reliable.

Businesses are increasingly turning to graphic design websites to create new logos, often using template or stock designs, images or fonts as all or part of them. While some understand that using stock elements might make their marks less distinctive because their competitors could be using something from the same website, it might surprise businesses to learn that the terms and agreements on these websites often state that logos utilizing template or stock designs, even if modified, cannot be registered as a trademark. Some businesses have received demand letters or been sued claiming that they are not allowed to use their logo (or an element of it, like a font) because it supposedly infringes a third party’s copyright. Similarly, some design agreements do not include sufficient work-for-hire language transferring ownership of what is created to the client.

Whether it is because they want to have a unique logo that can be enforced and federally registered or avoid the risk of having to face a future infringement claim, businesses and brand owners need to be diligent about the graphic design platforms or vendors they use to help design logos or other marketing materials.

To mitigate these risks, businesses can and should:

  1. Review contracts and policies (including terms of use and licenses) of their chosen design website or vendor for new logos and familiarize themselves with any restrictions or ownership issues up front. Consider having an attorney review.
  2. Review what policies and agreements apply for preexisting logos.
  3. Ask if graphic designers use design websites or image libraries, and if so, whether restrictions apply. Preferably require designer to warrant that creations will be original and indemnify against infringement claims.
  4. Before using it, run a proposed logo through any major online search engine’s image search to see if it contains any stock images or templates.
  5. Engage trademark counsel to conduct a clearance search before adopting a logo.

Paula Brueckner, counsel of CSG Law’s Trademarks & Copyrights Group, represents companies, startups and individuals in intellectual property matters particularly in trademark prosecution, licensing, enforcement and trademark litigation. She can be reached [email protected] or 973-530-2064.

Abigail Remore is practice group leader of CSG Law‘s Trademarks & Copyrights Group. She focuses her practice on helping business owners and creatives protect their distinctive brands and their creative works. Remore handles a wide range of intellectual property matters, including litigation, enforcement, counseling, licensing and prosecution of trademark and copyright applications. She can be reached at [email protected] or 973-530-2114.

Disclaimer: Sponsored content articles do not reflect the opinions of New Jersey Business Magazine or the New Jersey Business & Industry Association.

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