Marquee Background
Marquee Background

Offit Kurman Blogs

Intellectual Property

Supreme Court Limits First Amendment Protection in Trademark Parody Case

June 23, 2023

By Stephenie Wingyuen Yeung 楊穎苑

Decision

Jack Daniel’s Properties, Inc. v. VIP Products LLC, No. 22-148 (U.S. 2023).

This month, the Supreme Court clarified the interplay between the First Amendment’s protection of freedom of expression and the Lanham Act’s protection against trademark infringement in a case that dealt with a manufacturer of dog toys modeled off of famous liquor bottles. In Jack Daniel's Properties, Inc. v. V.I.P. Products L.L.C., No. 22-148 (U.S. 2023), the Supreme Court ultimately held that when analyzing the propriety of the use of another's trademark, the critical question is whether the trademark is being used for "source identification"—i.e., to communicate the maker, manufacturer, or creator of the work in question. If so, then there is no threshold First Amendment inquiry and an infringement claim can proceed as usual, regardless of whether the use of the trademark had been intended as a parody.

Background of Case

Jack Daniel's is a case about "dog toys and whiskey," Justice Kagan writes in the very first sentence of the Court's opinion. The dispute began when V.I.P. Products began manufacturing a dog toy primarily modeled after the famous Jack Daniel's Whiskey bottle called "Bad Spaniels." Although the toy largely borrowed the trappings of the iconic Jack Daniel's bottle and label,

it altered the words "Jack Daniel's" to "Bad Spaniels," "40% ALC. BY VOL" to "43 percent poo," and "Old No. 7 Brand Tennessee Sour Mash Whiskey" to "Old No.  2 On Your Tennessee Carpet." The toy also disclaimed that it was "not affiliated with Jack Daniel's Distillery."

Shortly after the Bad Spaniels chew toy hit the market, Jack Daniels demanded V.I.P. cease its sale. Rather than comply, V.I.P. sought a declaratory judgment in the District Court of Arizona, asserting: (a) it was protected from an infringement claim under the First Amendment according to the test set out for artistic works in Rogers v. Grimaldi, 875 F.2d 994 (2d Cir. 1989) (adopting a two-pronged threshold test for the Lanham Act to apply: (1) determining whether use has "artistic relevance"; and (2) if so, whether the use is "explicitly misleading" as to the source or content of the work); and (b) it was protected from a dilution claim because the toy was a parody and qualified as fair use under  15 U.S.C. § 1125(c)(3)(A). Jack Daniel's countersued, asserting trademark infringement (based on consumer confusion) and dilution.

Lower Court Decisions

At first, the District Court rejected V.I.P.'s arguments. It held that because the use of Jack Daniel's trademark identified the alleged source of V.I.P.'s product, First Amendment protections did not apply. The district court also refused the parody defense to dilution for essentially the same reason—i.e., the exclusion did not apply when the use of the mark identified the source of the alleged diluter's product.

After a bench trial, the district court found “consumers were likely to be confused about the source of the Bad Spaniels toy and that the toy’s negative associations with dog excrement (e.g., “The Old No. 2”) would harm Jack Daniel’s reputation.”

The Ninth Circuit reversed. The appellate Court determined the threshold First Amendment Rogers test did apply "because Bad Spaniels is an expressive work" and "communicates a humorous message." In addition to remanding the case on the infringement claim, the Court of Appeals also rejected the dilution claim, reasoning that since the work "parodies and comments humorously on Jack Daniel's," it was protected under the "exclusion for noncommercial use" per  15 U.S.C. § 1125(c)(3)(C).

On remand, the District Court applied the Ninth  Circuit’s analysis and granted summary judgment in favor of V.I.P. on the infringement claim. After the Ninth Circuit affirmed the second judgment, the Supreme Court accepted Jack Daniel's appeal on the infringement and dilution claims.

The Supreme Court’s Decision

Reversing and remanding, the Supreme Court largely agreed with the District Court's original analysis. Generally, it held that the threshold First Amendment Rogers test does not apply when someone uses a trademark as a trademark—that is, to identify the source of a product. In so doing, the Court provided several examples to help explain when trademark use is source-identifying versus when it is used to convey another expressive function. For example, the band Aqua's use of Mattel's trademark "Barbie”  in the song "Barbie Girl" did not speak to the song's origin but was used to promote a message of positive body image. Another example is the use of "Louis Vuitton" in the film The Hangover: Part II, where a character uses the mark to describe his luggage but mispronounces the name. The use was to convey something about the character – he wants to be seen with the luxury brand but doesn't know how to pronounce its name. These marks were not used to identify the source of the goods but to perform another expressive function, and the Rogers test would apply. On the other hand, when the use "at least in part [is] for source identification," as here where V.I.P. has used trademarks and trade dress derived from Jack Daniel's registrations as a designation of the source to promote its products, then the First Amendment Rogers does not apply because the "defendant may be trading on the goodwill of the trademark owner." For similar reasons, the Court also rejected the Ninth Circuit's decision about the noncommercial exclusion to dilution for "parody" and "fair use."

Ultimately, the Court held that neither the First Amendment nor the “noncommercial exclusion”  exception to liability applied. Thus, the lawsuit was remanded for further proceedings.

Key Takeaways

Brand owners have kept a close watch on Jack Daniels, as many were concerned that the Court would significantly expand the immunizing power of parody and humor in trademark infringement cases, allowing a potential infringer to dodge litigation by invoking Rogers. The Court's decision quells those fears. By drawing a clear line under the applicability of the Rogers test in disputes involving trademarks that contain expressive elements, the Court upheld the central ten-ant of trademark law: those using a mark that is similar to or evokes another's trademark as a source identifier to promote its goods or services will be subject to the likelihood of confusion inquiry under the Lanham Act, even if the use is in parody or overtly humorous. The First Amendment considerations do not create a safe harbor for those who trade on the goodwill of another's trademark to gain an advantage.

To be clear, the Court's holding does not eviscerate the role of parody. Jack Daniel's only makes the Rogers test unavailable as an escape hatch to achieve a summary dismissal of the infringement action. Satire remains a viable defense in the context of a standard likelihood of confusion inquiry. As the Court noted, "a parody is not often likely to create confusion. Self-deprecation is one thing; self-mockery, far less ordinary."

In sum, Jack Daniels refocuses the inquiry on the likelihood of consumer confusion. Companies are encouraged to consider these considerations as they evaluate new trademarks or trade dress during product and brand development.

This summary of legal issues is published for informational purposes only. It does not dispense legal advice or create an attorney-client relationship with those who read it. Readers should obtain professional legal advice before taking any legal action.

Related Services

  • Posts
  • About
  • Subscribe

Firm Highlights

  • Blog Posts
    Law, Love, and Life's Battles: Facing Breast Cancer
    What happens to a marriage and a family when a breast cancer diagnosis changes everything? In this episode of Love Ends, Law Begins, hosts Fara Rodriguez and Stephanie Lehman have a deeply personal conversation about breast cancer, marriage, family, and the challenges that can come with a serious illness. This episode is especially meaningful for Fara, who shares her own recent breast cancer diagnosis and journey. She opens up about discovering a lump, receiving her diagnosis, undergoing a double mastectomy and subsequent treatments, and navigating the emotional impact of cancer while continuing to work and care for her family. Fara and Stephanie discuss how a cancer diagnosis can affect a marriage in unexpected ways—from changing family roles and creating new caregiving responsibilities to putting pressure on finances, health insurance, and household responsibilities. They explore how illness can either bring couples closer together or create additional challenges, particularly when one spouse becomes the primary caregiver or when the family is dealing with fear and uncertainty. The conversation also addresses the unique challenges of parenting during an illness, including how to talk to children about a cancer diagnosis and how divorced parents may need to adjust parenting schedules and responsibilities when one parent becomes sick. From navigating medical expenses and insurance coverage to balancing work, parenting, caregiving, and intimacy, Fara and Stephanie offer a candid look at the ways illness can reshape relationships and family dynamics. In recognition of Breast Cancer Awareness Month, this episode provides an honest and personal conversation about facing cancer while navigating marriage, family, and the many practical challenges that come with a serious diagnosis. In this episode, you'll hear about: • Fara's personal breast cancer diagnosis and journey • How a cancer diagnosis can affect a marriage • The challenges of becoming a caregiver to your spouse • How illness can bring couples closer together—or create new challenges • Talking to children about a parent's cancer diagnosis • How divorced parents can navigate parenting responsibilities when one parent becomes ill • The financial impact of illness and the loss of household income • Health insurance and medical coverage considerations • How medical expenses can create additional financial strain • The importance of support from family, friends, and caregivers • Balancing work, parenting, treatment, and recovery • How illness can affect intimacy and marital dynamics • The importance of supporting children through a parent's illness • Why communication and cooperation matter during a health crisis • Breast Cancer Awareness Month and the importance of mammograms
  • Events
    AIA Tri-State Conference
    Princeton will serve as the backdrop for three days of connection, learning, and design leadership. From keynotes to tours to the Tri-State Design Awards, this year’s conference is designed to go far beyond education sessions. Kick off the week with pre-conference intensives and individual state component Design Award celebrations, followed by three days of education, inspiration, networking, and design excellence at the 2026 AIA Tri-State Conference—featuring pre-conference intensives, three keynote speakers, 25 education sessions, curated tours, an expo, spec academies, and the AIA Tri-State Design Awards—bringing together architects and design professionals from New Jersey, New York, and Pennsylvania to connect, learn, and celebrate the best of the profession. G2. Designing Secure Practices: Cybersecurity, Data Privacy, Contractual Provisions, and Insurance Risks for Architects (4:00 PM - 5:30 PM) Architects and design professionals increasingly rely on cloud platforms, BIM software, and digital tools to manage sensitive data, creating cybersecurity and privacy risks. A single incident can trigger liability claims, regulatory obligations, reputational harm, and insurance challenges. Yet many firms underestimate how contracts, insurance, and internal practices intersect during a breach. This program offers legal and insurance perspectives on cyber risk in architecture, examining liability exposure, risky contract provisions, and mitigation strategies. A cyber insurance expert will explain policy responses, coverage gaps, coordination with professional liability, and best practices for aligning insurance with contractual risk and protecting firms from evolving cyber threats. Learning Objectives: Identify key cybersecurity and data privacy risks faced by architecture firms and explain how these risks can impact professional liability and project outcomes. Analyze common contractual provisions to determine which clauses may increase exposure to cyber incidents and propose strategies to mitigate these risks. Evaluate the scope and limitations of cyber insurance policies, including coordination with professional liability coverage, to determine how a policy would respond in a breach scenario. Develop actionable risk management strategies by integrating legal, contractual, and insurance considerations to protect sensitive client and project data.