Trademark dilution is when someone takes a trademark that is owned by another person or company and uses it in a way that makes the original trademark less strong or recognizable. For example, let's say that there is a toy company that has a teddy bear as its logo and a signature phrase like "hug me". If another company then starts using the same teddy bear logo and phrase, it weakens the original company's trademark, because people can now get confused and think that the two companies are the same. Diluting the trademark means weakening it, just like if you add water to your glass of juice, it makes the flavor weaker.