The Theory of Dilution Crosses the Pond

By Gregory J. Krabacher, Epstein Becker Green.
The origin story for the cause of action of “dilution” in the United States begins with Frank Schechter’s 1927 Harvard Law Review article, Rational Basis of Trademark Protection. [i] Indeed the U.S. Supreme Court credits Mr. Schechter’s work as the “seminal discussion,” noting that “[u]nlike traditional infringement law, the prohibitions against trademark dilution are not the product of common-law development, and are not motivated by an interest in protecting consumers.”[ii]
Mr. Schechter based his theories, among other cases, on his study of the German Odol case.[iii] In that case, the court found harm to the selling power of a well-known brand for mouthwash through the use by another party for steel. Schechter notes in passing that if U.S. courts eventually adopt Odol’s holding, “it will not be the first time that they have gone to continental armories for the weapons with which to combat the commercial buccaneer.”[iv]








