Natalia owns Balloon Heaven, a popular restaurant in which patrons sit in faux hot air balloons and the walls and ceiling are painted like the sky. Natalia registered her mark, which consists of the restaurant name in the basket of a rainbow-colored hot air balloon. After Natalia's success, Benji opened a restaurant called Heavenly Balloons on the other side of town. The décor of Heavenly Balloons is similarly crafted to give the patron the impression of eating in the basket of a hot air balloon, with similar tables and paintings. Benji's logo, which appeared on billboards and local advertisements, depicts a rainbow-colored hot air balloon with the restaurant's name in the balloon. Several customers have congratulated Natalia on opening a second restaurant and on the billboards appearing around town.
-Which of the following is true about the requirements for trademark dilution and trademark infringement?

Question

Quizplus · Accepted Answer

Trademark dilution requires the mark to be famous and does not necessarily require a showing of consumer confusion, focusing instead on the lessening of the mark's distinctiveness or harm to its reputation. Trademark infringement, on the other hand, requires a showing of consumer confusion about the source of goods or services but does not require the mark to be famous.

Natalia Owns Balloon Heaven, a Popular Restaurant in Which Patrons