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The distinctive quality of a trademark is compromised if competitors create trademarks that either copy or are so similar to another that it creates market confusion, so protecting trademarks is critical to their effectiveness. A well designed protection strategy protects your business from competitors who might harm you by trading on your good name, and protects your customers from inferior products “passed off” as yours.
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While the party on the other side may be a known or even trusted person or entity, unforeseen or unexpected events could arise. It is important to go into every agreement or undertaking know how you or your company will get out of the contract. Make sure the contact contains a termination clause and amicable grounds that allow reasonable parties to dissolve the agreement.