Dec 18, 2024
How to Spot a Copycat Brand & 5 Key Ways to Protect Your Brand
Every business wants to establish a reputation for quality and reliability, but what happens when a copycat brand tarnishes your identity? Let’s say you sell high-end skateboard gear, and a few months into your operation, you find a social media page featuring your products. Still, they're being marketed by a copycat brand with an almost identical logo and name. Instead of appealing to skateboard enthusiasts looking for premium equipment, this brand caters to bargain hunters looking for a cheap alternative. The scenario is alarming and all too common. The good news is that, in this article, we’ll help you confidently identify copycat brands and implement effective brand protection strategies to protect your business, brand identity, and market position.
Detecting copycat brands early on is key to mitigating their damage. Bustem’s copycat detection tool helps brands like yours quickly identify these imposters so you can take action.
Table of Contents
What is a Copycat Brand and Why They're Dangerous
A copycat brand imitates another business’ products, services, or overall identity. Copycat brands replicate an existing company’s strategy to capitalize on its hard-earned reputation without investing in original ideas or innovation. For example, Starbucks didn’t invent coffee shops when it entered the market. It just improved on a well-known concept.
Copycat brands are a reality of business today, especially in technology. When rival companies release new gadgets, consumers expect to see similar products. Copycat brands also exist in every industry. They can work and be hugely profitable but harm original brands and consumers.
The Dangers of Copycat Brands
The success of copycat brands comes at a cost to original brands and consumers. Copycat brands can undermine trust in a business’s products and services. Consumers expect the same quality as the original when they buy products from a lookalike brand. If they’re disappointed, it can hurt the reputation of the real brand not the copycat. Copycats also dilute market value. Taking sales from the original brand negatively impacts the company’s profitability and market share. This can result in lower stock prices and reduced investor confidence. Copycat brands also pose a risk to consumers. Similar products can confuse buyers.
This can lead to dangerous situations. For example, if a copycat brand produces a lookalike of a popular electronic device, the imitation may not meet safety standards or function pr, puttingan put consumers at risk. Beyond all of this, copycat brands often operate unlawfully. In many cases, they infringe on existing trademarks. When this happens, businesses must divert resources to protect their intellectual property instead of focusing on innovation.
The Story of Lookalike Brands: A History
Copycat brands have existed since people started trading and marking goods. One of the earliest cases was reported in 1617. In it, one of the judges referred to a case involving an “a clothier, [who] had gained a great reputation for the making of his cloth [and] he used to set his mark to his cloth, whereby it should be known to be his cloth and another clothier perceiving it, used the same mark to his ill-made cloth on purpose to deceive him, and it was resolved that the action did well lie.”
The world of branding has moved on, but at the heart of a passing-off case is deceit. That gives us the famous legal test from Perry v Truefitt: “A man is not to sell his own goods under the pretence that they are the goods of another man.” The appeal for the copycat or lookalike is the same as in the 17th century. Someone has built up a reputation for quality goods, why not take advantage of that by making a product that looks similar?
How Close Is Too Close?
A copycat brand is a brand that is intentionally similar to another. The similarity may be found in the product's shape, packaging or color. We are not talking about counterfeit or "fake" products. A copycat brand attempts to get as close to a well-known brand as possible without infringing the original owner's intellectual property rights. There are many famous examples.
Morning Star v Express Newspapers
Where a communist broadsheet complained that the proposed "Daily Star", which was said to be a "popular, lively, exciting" newspaper with nearly nude models, was guilty of passing off, this case is more famous for the judge's comment that "only a moron in a hurry would be misled".
Reckitt & Colman Products Ltd. v Borden Inc. (1990)
This was the "Jif Lemon" case, where the House of Lords set the test for passing off.
United Biscuits v Asda (1997)
A battle between Asda's "Puffin" chocolate biscuits and United Biscuits' "Penguin" biscuits. The issue was that the packaging was similar enough to mislead consumers. This was the first reference to "taking a conscious decision to live dangerously".
Irvine v Talksport Ltd (2003)
Where an apparent endorsement was akin to passing off. Specsavers v Asda (2010) where the living dangerously concept was considered in some detail.
What is Trade Mark Infringement and Passing Off?
Most cases involving “copycat” brands centre around two specific areas:
Confusion: where a similar or identical sign is used about similar or identical goods or services which will likely confuse the public.
Unfair advantage/detriment: where a similar or identical sign takes unfair advantage of, or is detrimental to, the distinctive character or reputation of the trade mark.
Similarity and Likelihood of Confusion
The public will likely be confused if they believe the trademark holder made the product by the “copycat” brand. That sounds straightforward enough, but how does the trade mark holder prove that? One piece of evidence is the distinctiveness of the trademark. Is it unique or unusual, like:
KODAK
Zappos
Apple
At the other end of the scale are descriptive marks describing the product. The more distinctive the mark, with a similar copycat, the more likely a consumer will be confused. If the mark or get-up is generic, establishing confusion will be more difficult.
In Thatchers Cider Company Limited v Aldi Stores Limited
This year, the High Court concluded that Aldi's “TAURUS CLOUDY CIDER LEMON” did not infringe Thatchers Cider Company Limited's trademark nor amount to passing off. The court found a low similarity between Aldi's and Thatchers' products. The court decided that “THATCHERS” was aurally and conceptually different from “TAURUS.”
Unfair Advantage or Detriment
The court may assess whether a “copycat” brand has taken unfair advantage of a trademark's distinctive character or reputation to benefit from and exploit its value. The “copycat” brand need not intend to take advantage of the trademark's reputation. Detriment can weaken the trademark's ability to signify the goods or services it uses because of the “copycat” brand. Detriment will be found if the economic behavior of the average consumer of the goods or services has changed or is seriously likely to change. These concepts are different but often come together. They are typically asserted where it is challenging to establish confusion.
Red Bull GmbH v Big Horn UK Ltd and others (2020)
The claimant made a well-known energy drink, “Red Bull,” its branding was two silhouetted bulls charging at each other in front of a circle. The defendant made an energy drink named “Big Horn,” the branding had two charging rams in front of a circle. The court found that while there was no confusion, the defendants took advantage of the Red Bull branding.
This year, in William Grant & Sons Irish Brands Limited v Lidl
The court considered if the re-design of Lidl's Hampstead gin get-up infringed William Grant & Sons trademark and amounted to passing off regarding its product, Hendrick's gin. The court decided viewing Lidl's re-design of Hampstead Gin's get-up as accidental or coincidental was difficult. William Grant & Sons had a reasonable prospect of successfully demonstrating that Lidl intended to benefit from the reputation and goodwill of their trademark.
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What Makes a Brand Original? Authentic vs. Copycat Brand
Originality Is Key: The Elements of Authentic Brand Identity
Brand originality is about being authentic to your mission, vision, and values. An authentic brand communicates originality through:
Unique value proposition
Innovative products
A distinct voice in the marketplace
This helps build long-term consumer loyalty and brand equity. In contrast, copycat brands tend to follow rather than lead and, as a result, lack originality.
Focus: Authentic Brands Know Their Target Audience
One of the distinguishing features of copycat brands is their lack of focus. These brands are often complex, as they don’t know what they stand for or who they serve. They try to cater to everyone by offering various services and products to survive. Authentic brands know exactly what they stand for and who they serve, so they always focus on simplicity. They understand their clients and strive to make their customers’ lives easier.
Relationship With The Audience: Authentic Brands Connect With Their Customers
Copycat brands don’t have a defined target audience, so their messaging lacks empathy. Their messaging is very generic and tends to talk about features. Original brands close the communication loop by getting feedback, and they connect with their audience a lot easier because they understand their clients’ pain points and how to help them.
Structure: Authentic Brands Are Built On Emotional Connection
Copycat brands are built on a Unique Selling Proposition of service. These brands don’t understand the emotional drive behind their customers’ purchases, so they focus on unique features others may not offer. Even though it is smart to focus on features the marketplace needs to include, it is a short-term business model, as others will want to catch up. The competition will start copying these features, so they must repeatedly reinvent the wheel to sustain the business. Original brands are built on the Unique Buying State of the Customer. They understand that about 65% of purchasing decisions are based on emotions. They focus their message on the customer's emotional state before and after purchase to encourage purchase.
Extensibility: Authentic Brands Foster Customer Loyalty
Copycat brands have single-use offers. These brands should have taken the time to create a customer journey where the brand keeps re-inviting the client to engage with the brand. Having only single-use offers is risky because the brand has to chase new customers. It can depreciate the price of the service and doesn't allow room to create brand loyalty.
Authentic brands understand that their customers are in different stages in the sales cycle, so they structure their services to create trust and brand loyalty over time. They have minimal value offers much cheaper than their signature offers to help new prospects get a taste of the brand before investing a large chunk of money.
Picture In Client’s Mind: Authentic Brands Are Memorable
Brand loyalty is low since copycat brands don’t focus on the customer journey. People tend to forget about them because they look alike, sound alike, and act alike with Susie from the corner, who offers the same services. Authentic brands are memorable because they understand their clients’ struggles and feelings before the purchase, so they can focus on solving the problem instead of trying to sell someone something they don’t need.
All in all, taking the time to think about your brand from a customer’s perspective can help your brand grow quicker, last longer, be memorable, and stand out from the crowd.
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5 Ways to Deal with Copycats in Business
1. Be Flattered - Then Do a Legal Checklist
When you see someone copying your business, your first reaction will probably be infuriation. You've worked for years on an idea, and now someone's just swiping it? That can be frustrating. But really, you should be flattered.
Think about it:
“Wow, someone thinks we're successful enough to copy? I should get a pat on the back.” If someone is copying you, be proud. Once you've congratulated yourself, do a mental checklist to see if any laws are being broken.
There is no need to call an attorney (yet). Just check if any of your filed trademarks or copyrighted graphics and text are being used by your so-called competition. You should also see if they're committing any trade dress infringement when the look and feel of their product is close enough to yours to confuse a consumer. In that case, a simple cease and desist letter can take care of it. And if you've got someone copying you, you should contact an attorney, too.
2. Mark Your Territory
Protect your originality with trademarks. Chase tail on copyright infringement when it can potentially damage business seriously. If someone is stealing your intellectual property, unleash the beast (i.e. an intellectual property lawyer.) You've had to file your fair share of DMCA notices and send handfuls of C&D letters for stolen:
Photographs
Articles
Ebooks
Etc
But 99% of the time, it's not worth my time or energy to chase the copycat down and teach them a lesson. It isn't worth the fight if someone imitates your product designs or content ideas without directly infringing. (To be honest, sometimes, what we perceive as a copy isn't necessarily so.) Like in other business areas, you must pick and choose your battles. Consider if it's better to turn the other cheek and continue your merry way.
3. Differentiate Yourself With a Strategy
Jeff Bezos once said, “If we can keep competitors focused on us while we focus on the customer, ultimately, we'll turn out alright.” Spend all your time worrying about your copycat competition. Your business will become a series of anxious, knee-jerk reactions, and you'll build the same products or produce the same services as everyone Instead, focus Focus on your customers and what they Thising so will set you apart from the people who matter most.
Outshine Copycats by Focusing on Excellence and Building Brand Loyalty
For the majority of these people or firms that feel the need to copy your concepts, they are on the path to ordinary, not extraordinary. It's doubtful they’ll see long-term success in your industry. Do not let them destroy what you are building and the vibe you are putting into the industry. If you offer superior service and do what others in the industry cannot do, then focus on that.
Focusing on Your Unique Value to Build Client Trust and Brand Loyalty
Suppose you’re offering your clients what no other investment company or brokerage in Canada can discuss and put your energy into that. Our clients will notice and support us going forward. This leads to trust from your clients and building brand loyalty for you and your firm. The copycats will not affect your business if you don’t let them; instead, focus on what you do well and keep delivering for your clients. And remember, if they are focused on what you are doing, they are not focused on what they are doing, and their offering will suffer accordingly.
4. Challenge the Copycat Behavior
Embracing the situation of a copycat does not simply mean turning your back and pretending it's not happening. You should speak up and talk to these people, ask them questions about their business, and challenge what they claim professionally. You might learn where they come from and why they are copying you. Going the legal route should always be the last resort and only in severe cases with malice and direct issues. Instead, call them and talk to them about their marketing or claims. Ask to speak to the people making the decisions. You may find that the behavior stops or moves in another direction after your confrontation. This information might help shape some of your brand strategies and planning.
5. Innovate, Work Hard, and Move Beyond the Noise
Keep abreast of new technologies and ways to do things differently; if you keep moving your goalposts, the copycat will be unable to keep up with you. Being first in your industry to do something is not a surefire path to success. Strong and innovative companies with a passionate leadership team about their product or business will always want to learn and adapt continuously.
Turning Copycats into Motivation: Staying Ahead Through Innovation and Agility
Many leaders take inspiration across sectors and the globe, but what copycats do is an entirely different ball game. Be flattered when a business or leader copies you, but keep reinventing your model as you move forward. This business may be copying you today, but another company could come along that removes your competitive advantage, and someone could do better.
Get used to the feeling, and keep creating things people want to copy. Your business will remain intact and protected. Competition is all around us, so use it as a motivator to think creatively, be nimble, and continuously improve yourself and your business model.
Find and Take Down Copycats with One-click Today
Bustem is a powerful copycat detection and removal tool for e-commerce merchants. Our platform automatically scans billions of websites to identify unauthorized use of your store content, including:
Images
Videos
Headlines
Text
Once we spot copycats, we streamline the entire takedown process with pre-filled DMCA forms and comprehensive case management.
Protect Your Brand with Bustem's Content Protection Service
Built by people who know the game inside out, our service offers 24/7 monitoring, instant detection, and bulk takedown capabilities to protect your brand assets. With over 2M DMCA notices filed daily and businesses losing $29B annually to content theft, we've made protection simple and cost-effective. Whether dealing with competitors using your product images, copying your ad content, or stealing your copy, Bustem helps you identify and eliminate copycats efficiently.
Get started with a free scan and see who's been stealing your content. Find and take down copycats with one click today with Bustem.
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