Munchies, Inc., features the trademarks of famous fast-food restaurants such as McDonald's on binders and other school supplies.Munchies's use of the marks is trademark dilution

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Trademark dilution occurs when a trademark is used without authorization and causes the famous mark to become less distinctive. It does not require consumer confusion or competition with the owner's goods. Munchies's use of the famous fast-food restaurant trademarks on school supplies is an unauthorized use that dilutes the distinctiveness of the trademarks. Attempts to register the marks are not relevant to the issue of trademark dilution.