Disney Axes Toy Story 3 Claim as 9th Cir. Upholds Trademark Rule

Disney thwarted allegations its Lotso Bear character from Toy Story 3 infringed a “Lots of Hugs” Bear trademark as the Ninth Circuit declined an invititation to rewrite case law on trademarks in expressive works.

Diece-Lisa Industries Inc.'s appeal almost exclusively focused on challenging Rogers v. Grimaldi, a 1989 case allowing significant leeway for incorporating trademarks into expressive works. The US Court of Appeals for the Ninth Circuit said “we are constrained” from undoing the Second Circuit precedent that it and several other circuits have adopted.

The test allows for use of a trademark in an expressive work if it’s ...