Sponsorship may lead to trademarks becoming associated with unrelated industries.
According to the Trademark Act, a mark that is identical, or similar, to a well-known trademark can be precluded from registration if there is a likelihood of confusion, or if there is a likelihood of dilution of the distinctiveness or reputation of the well-known trademark.
In practice, the Taiwan Intellectual Property Office (TIPO) has a very strict standard for affirming trademark dilution when there is an attempt to exclude others from use, or registration, of a mark associated with a good or service that is dissimilar to a good or service related to a well-known mark.
Therefore, whether there is a likelihood of confusion becomes a core issue under consideration by an examiner when the holder of a well-known trademark exercises his or her exclusive right against identical or similar marks in an unrelated business field.
TIPO, Formula 1, automotive, Taiwan Trademark Act, well-known marks, Red Bull