The Supreme Court told the Ninth Circuit to rethink Disney’s trademark win involving its Lotso character from “Toy Story 3" less than two weeks after it narrowed the test Disney rode to victory.
Diece-Lisa Industries Inc. asked the justices to review a finding that Disney’s Lotso character—and corresponding toy—in the movie satisfied a test for trademark use in expressive works. The toy seller alleged Disney’s Lotso—a pink stuffed bear—infringed its registered “Lots of Hugs” toy trademark under which Diece-Lisa sold pink stuffed bears.
Lotso satisfied the Rogers test, which allows “artistically relevant” use of marks in expressive works if not ...
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