A restaurant that operated under the trade name "Moon" changed its name due to separation from some of the owners. Following the name change, the restaurant published a notice of the name change, indicating the previous trade name.
The Court held that by the publication there was no infringing use of the trademark. A trademark can also include the name of a business. Generally, a notice that clarifies that a business is not associated with a trademark does not constitute infringement. In addition, even if another's trademark is used, the user may be entitled to the defense of "honest use," which is reviewed based on three considerations: Misleading conduct vis-à-vis consumers, necessity of the use, and reasonableness and fairness of the use. Here, the notice was intended to distinguish the restaurant under the new name from the restaurant that operated under the name "Moon". Therefore, there is no consumer misleading. In addition, the use of the trade name in the context of a notice that creates a distinction is reasonable. Finally, because the purpose of the notice was to create such a distinction, the use is proportionate. Therefore, the trademark was not infringed.