January 26, 2010 by Ariel Katz
Ariel Katz is an Associate Professor at the Faculty of Law of the University of Toronto. Ariel holds the Innovation Chair in Electronic Commerce and is the Director of the Centre for Innovation Law and Policy of the University of Toronto.
Modern trademark scholarship and jurisprudence view trademark law as an institution aimed at improving the amount and quality of information available in the marketplace. Under this paradigm—known as the search-costs theory of trademarks—trademarks are socially beneficial because they reduce consumer search costs, and as a consequence provide producers with an incentive to maintain their goods and services at defined and persistent qualities.