The trademark guarantees market transparency and protecting clear communicative channel between innovative product and consumer rather than rewarding creators or creating direct incentives for the inventor like in Intellectual Property and Patent. However, unfair advantages of the trademark are rising to new challenges because of complex average consumer behaviour. Nevertheless extended protections of the trademark can also create obstacles to innovation and market competition. Therefore, to understand the unfair advantages and associated challenges in the trademark in this thesis the research focus is kept on unfair advantages linked with likelihood of confusion and dilution and its possible limitations, and finally problem with existing approach to determine the unfair advantages.