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 not have been awarded a trademark for the check mark on its shoes.

Question

Quizplus · Accepted Answer

The grounds for this suit are likely to be that NikeShoes is diluting the value of Nike, Inc.'s product and tarnishing its image by using a similar trademark (the check mark) on an inferior product that is made using child labor. This is a classic case of trademark dilution, which occurs when a trademark is used in a way that diminishes its distinctiveness and reputation. By using a similar trademark on an inferior product, NikeShoes is likely to cause confusion among consumers and damage Nike, Inc.'s brand. As such, Nike, Inc. has a strong case for trademark infringement under the Federal Trademark Dilution Act of 1995.

NikeShoescom Produces a Running Shoe That It Sells in the United