Question

NikeShoes produces a running shoe that it sells in the United States. The shoe has a check mark on the side, uses inferior materials, and is made using child labor. Nike, Inc. sues NikeShoes for trademark infringement under the Federal Trademark Dilution Act of 1995. What is likely to be the grounds for this suit

Answer 1

The product value and reputation of Nike, Inc. are being compromised by Nike Shoes.

What is the Federal Trademark Dilution Act of 1995?

The Federal Trademark Dilution Act of 1995 amends the Trademark Act of 1946 to give the owner of a well-known mark the right to an injunction and compensation for another person's commercial use of a mark or trade name if that use starts after the mark has achieved notoriety and lessens the mark's distinctiveness.

It defines the criteria the court will use to decide whether a mark is distinctive. It restricts owners of such marks to injunctive remedies unless the person for whom the injunction is requested acted with malicious intent to exploit the owner's reputation or tarnish the mark. It offers further remedies if such intent is shown to have existed.

A person's possession of a valid registration under a specific Act or on the major register renders them completely immune from legal action taken under common or state law to protect the distinctiveness of a mark, label, or form of advertisement against them with regard to that registration.

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