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According to the 2017 American Intellectual Property Law Association Report, the average cost of a Trademark lawsuit ranges from $300,000 to more than $1,000,000. The average cost of a Trademark opposition proceeding is over $80,000 and such a proceeding will not stop a party from using a mark or award any damages. The high costs are the result of the specialization in the law and layers of “gray area” that permeates trademark law. Because of this, the discovery process is burdensome and expensive and expert witnesses are often essential and carry their own large price tag. Jurors are not trained in this particular area and Judges rarely have an extensive background in trademark law. No lawyer can give strong assurances of prevailing, especially when the critical test, “whether the mark is likely to cause consumer confusion as to the source or origin of goods” is far from a black or white test. In addition, trademark disputes are often difficult to evaluate from a damages perspective. It can be challenging for the parties to produce evidence of damages they seek, and even more challenging for the jury to arrive at a fair award.
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