Disparagement

What Does Disparagement Mean?

Disparagement is a term used in trademark law to describe a basis for filing a claim to cancel a registered trademark before the Trademark Trial and Appeal Board (TTAB) of the Patent and Trademark Office (PTO). For the claim to be considered, it must demonstrate that the trademark is offensive or disparaging to an individual or group of people, or that it falsely suggests a connection that harms or discredits the reputation or quality of a person or entity.

Outside trademark law, disparagement also refers to false statements that damage a competitor’s business or product reputation, which is why most general liability policies include coverage for “personal and advertising injury” claims involving libel, slander, or disparagement of another company’s goods.

Insuranceopedia Explains Disparagement

A trademark can be contested on the grounds that it “disparages or falsely suggests a connection with persons, living or dead, institutions, beliefs, national symbols, or brings them into contempt or disrepute.”

Unlike claims that challenge the validity of a trademark, disparagement claims can be filed at any time. The Patent and Trademark Office (PTO) is responsible for determining whether sufficient grounds exist to support the disparagement claim.

Business owners who write, advertise, or make public comparisons about competitors face real exposure to disparagement lawsuits, and a standard general liability policy may not cover claims tied to professional services or written advice. In those cases, professional liability insurance can fill the gap.