What is the significance of distinctiveness in trademarks?

Distinctiveness is a crucial aspect of trademark law, as it determines the level of protection a trademark receives. Trademarks that are deemed fanciful, arbitrary, or suggestive typically enjoy the highest degree of protection because they are inherently capable of identifying the source of goods or services and differentiating them from others. Fanciful marks are completely invented terms (like "Kodak"), arbitrary marks use common words in an unrelated manner (like "Apple" for computers), and suggestive marks imply a characteristic of the goods or services but require some imagination to make the connection (like "Jaguar" for cars).

The higher the level of distinctiveness, the more exclusive rights the trademark owner has against unauthorized use by others. This is important to protect the owner’s brand and maintain the quality and integrity of their goods or services in the marketplace. In contrast, generic terms cannot be trademarked as they are common names for products or services and do not provide any source-identifying function. Therefore, recognizing the significance of distinctiveness helps one understand that not all types of marks receive equal protection under trademark law.