March 4, 2003, was a dark day for big business. On that date the Supreme Court handed down its decision in Moseley v. V. Secret Catalogue Inc., a ruling that gutted one of companies’ main bulwarks for protecting well-known trademarks: the Federal Trademark Dilution Act (FTDA).
The FTDA gives special legal protection to owners of famous marks. Ordinary trademark law protects a mark only against activity that’s likely to confuse consumers. By contrast, the FTDA protects a famous mark against anything that may impair the distinctiveness of the mark–even if there is no danger of consumer confusion. The protection it offers is broad and powerful.
