Naming another company when describing your product

Question

When I'm looking at a new product, a lot of times it's hard to understand what it does. I see a lot of comments on HN saying things like, "wow it would be nice if they just said, 'We're like Dropbox, but with end-to-end encryption, plus a few other bells and whistles'". It helps to categorize the product quickly in people's minds.My question is, what are the pros and cons of putting descriptions like that on your official landing page? Is there a legal downside? Is there a marketing downside? Why don't people do this more?

JohnFen · Accepted Answer

I think that people often avoid this for two reasons: they don't want to give competitors free advertising, and they don't want to risk people thinking "if this new thing is like this old thing, I'll just stick with the tried-and-true old thing".IANAL, but in the US, I am not aware of a legal downside as long as you're careful about trademarks. You can use other people's trademarks in ad copy, for instance, as long as you don't do so in a way that could cause consumer confusion (people thinking that the company whose trademark you used is in some way connected with your product.)

noashavit · Answer

If your competitor is much more well known AND your product is superior to theirs and you are at the beginning of your journey there is no downside. Using their name will help ppl get what you do and help you get in front of the right audience.Once you are a more established company, though, you really need to be able to describe your offering and differentiation independently of other companies.