INTELLECTUAL PROPERTY AND INTERNET LAW

Trademark Infringement. Nike, Inc., manufactures and markets footwear, ap¬parel, and related accessories. To identify its products, Nike uses the word "Nike" and/or a "swoosh" design as its trademarks. From 1977 through 1991, Nike spent more than $300 million advertising the trademarks. Since 1971, sales revenues for items bearing the trademarks have exceeded $10 billion. Nike began using the phrase "Just Do It" in 1989 as a slogan for its sweatshirts, T-shirts, caps, and other accessories. Sales revenues for "Just Do It" items have exceeded $15 million. "Nike," the swoosh design, and "Just Do It" have gained widespread public acceptance and recognition. Michael Stanard is an award-winning commercial artist whose works include, among others, the trademark "Louisville Slugger" printed on baseball bats. As a summer project, he and his daughter decided to market his first name, Mike, as a takeoff on the Nike logo. They named their project "Just Did It" Enterprises and concentrated on marketing T-shirts and sweatshirts to members of the general public with the given (first) name of Michael. They also mailed brochures to college athletes and celebrities named Michael. Sales were entirely by mail order. Approximately two-thirds of those purchasing the shirts were named Mike. Stanard believed that the other third probably bought a T-shirt for a friend, relative, or loved one named Mike. Ultimately, the project lost money.

Nike sued Stanard for trade¬mark infringement. Stanard argued that the word play was humorous and constituted a fair use of the trademarks as a parody. Should the court rule that Nike's trademark had been infringed? Explain.