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"Blurring" refers to a situation where a trademark's distinctiveness and brand identity become diluted or blurred due to its unauthorized use on unrelated goods or services. This can damage the trademark's selling power and ability to serve as a unique identifier. Here are some real-world examples of trademark blurring and its effects:
Harley-Davidson - Motorcycles to unrelated merchandise - The iconic Harley-Davidson brand experienced blurring when its bar & shield logo started appearing on products completely unrelated to motorcycles, like ceiling fans, alcohol flasks, cigar cases. I saw a set of votive candles with the Harley logo on them once. Try justifying that the to the biker who has tattooed the logo onto his arm! This excessive merchandising blurred Harley's brand as a motorcycle manufacturer.
In these cases, the blurring of trademarks by uncontrolled overexposure on unrelated products caused brand diffusion and loss of exclusivity. This can negatively impact sales of the brand's genuine core products by eroding its distinctive identity and premium brand positioning in consumers' minds.