Ghost marks are

trademark A trademark (also written trade mark or trade-mark) is a type of intellectual property consisting of a recognizable sign, design, or expression that identifies products or services from a particular source and distinguishes them from ot ...

s which closely simulate ordinary words or phrases used in the course of

trade Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market. An early form of trade, barter, saw the direct exc ...

, and which are not intended to be used as genuine trade marks.

Examples

In the case of '' Imperial Group v. Philip Morris'' 1982 FSR 72, the

plaintiff A plaintiff ( Π in legal shorthand) is the party who initiates a lawsuit (also known as an ''action'') before a court. By doing so, the plaintiff seeks a legal remedy. If this search is successful, the court will issue judgment in favor of t ...

endeavored to register the trade mark "MERIT" for

cigarette A cigarette is a narrow cylinder containing a combustible material, typically tobacco, that is rolled into thin paper for smoking. The cigarette is ignited at one end, causing it to smolder; the resulting smoke is orally inhaled via the opp ...

products, but was unable to do so on the grounds that the trade mark was too descriptive. Instead, it registered the mark "NERIT", without any intention of using the mark, but in order to prevent other traders from using the mark "MERIT" because it would be considered too similar to the registered mark "NERIT". The intention was the obtain a

de facto ''De facto'' ( ; , "in fact") describes practices that exist in reality, whether or not they are officially recognized by laws or other formal norms. It is commonly used to refer to what happens in practice, in contrast with '' de jure'' ("by l ...

monopoly A monopoly (from Greek language, Greek el, μόνος, mónos, single, alone, label=none and el, πωλεῖν, pōleîn, to sell, label=none), as described by Irving Fisher, is a market with the "absence of competition", creating a situati ...

over the unregisterable mark "MERIT". The

defendant In court proceedings, a defendant is a person or object who is the party either accused of committing a crime in criminal prosecution or against whom some type of civil relief is being sought in a civil case. Terminology varies from one jurisd ...

began using the mark "MERIT" for cigarettes and was sued by the plaintiff for infringing its mark "NERIT". The

court A court is any person or institution, often as a government institution, with the authority to adjudicate legal disputes between parties and carry out the administration of justice in civil, criminal, and administrative matters in acco ...

struck down the registration for "NERIT" on the basis that the plaintiff had no genuine intention to use the mark (despite some "trivial and insubstantial" efforts at launching a NERIT-branded product). Prior to the decision in ''Imperial Group'', ghost marks were a commonplace tactical procedure for trade mark owners. Ghost marks are now rarely filed following this decision. A somewhat similar protection to that offered by ghost marks are available through the use of defensive trade marks. Trademark law {{Trademark law