It has been indicated in a number of marketing researches that more than 80 per cent of the visual data is in relation with color, as color helps in conveying information, further providing some additional operational benefits to the user. The utilization of distinctive colors for the identification of products can be considered everywhere from industrial equipment to pharmaceutical items. The packaging of some products is done in a number of different colors, while a number of other products are packaged in a combination of different colors and designs.
The actual label or container or design of the product may involve some differences, even if there is similarity of colors. On the other hand, there will be confronting of a more confusing situation by a consumer. It is important to consider that there is a limited supply of colors and this is where the key issues arise when considering trademark of color under legal regulations. A number of business organizations have taken up the steps for protecting their identity of color due to the effect of colors on the overall sales. The principle that one color will receive protection of trademark can be considered as the law of the land. This establishment tends to manifest itself not only within the statutes of nation, even within the international agreement on aspects related to trade considering the rights of intellectual property that include trading in Counterfeit Products of the Agreement of TRIPS. On the other hand, it is recognized by the courts that there is a limited supply of colors and if companies are allowed to trademark their colors, then the range of attractive colors for the line of products will end up depleting. Even though the courts hold the tendency of viewing that preventing the utilization of a color will put a competitors at a certain limitation, the color should pass the test of functionality.
There can be a definition of functionality by a number of criteria such as psychological effects, aesthetic effects and visual effects. Irrespective of the lawsuits and their precedent setting, the laws related to trademark and ownership of color are within flux. Previous rulings are reserved frequently by subsequent law cases. In a consequent sense, organizations have been continuously taking lawful actions and huge investments are made for defending the rights over color.