NikeShoes.com 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?
A)NikeShoes is diluting the value of Nike, Inc.'s product and tarnishing its image.
B)NikeShoes is not paying Nike, Inc. a percentage of its sales.
C)Nike, Inc. does not want its products compared to competitors.
D)NikeShoes should have not been awarded a trademark for the check mark on its shoes.

Question

Quizplus · Accepted Answer

The grounds for the suit would likely be that NikeShoes is diluting the value of Nike, Inc.'s product and tarnishing its image by using inferior materials and child labor, which goes against the values associated with the Nike brand. The trademark dilution act protects against the "blurring" or "tarnishing" of a famous trademark's distinctiveness, and Nike, Inc. would argue that NikeShoes' use of a similar check mark on an inferior product using unethical practices can harm the reputation of the Nike brand. Options B, C, and D are not relevant to the case.

NikeShoescom Produces a Running Shoe That It Sells in the United