Blurring. A coffee company got sued by Starbucks when it marketed a dark roasted blend that it called Charbucks Blend (and later Mr. Charbucks). The District Court dismissed Starbuck's action, holding that there was no dilution of Starbuck's trademark or likelihood of dilution and no likelihood that consumers would confuse the dark roasted blend with Starbucks. The Second Circuit reversed in part, and remanded the case to the District Court for a determination as to whether the use of Charbucks Blend and Mr. Charbucks would dilute Starbuck's trademark by "blurring" or tarnishment.
The decision in Starbucks Corporation v. Wolfe's Bourough Coffee, Inc. can be found here.
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