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Well, trade mark in my point of view it doesnt kill innovation but yes it encourages monoply. Trade mark will be lost if you wont bring innovation in your products or services. and your innovations will strengthen you and will help to monopolize in the industry you are serving.
Yes the trademark infringement encourages the monopoly but at the same time it also encourages the innovation. Suppose I have Product X with trade mark and you want to develop similar product but cant do because of my trademark. So you will re-invent the wheel and bring some innovation to my product X so as you can by-pass my trademark.