The bill was introduced in the wake of a ruling by the Supreme Court which said that in order to succeed in a dilution action, a trade mark owner had to show evidence that a competitor caused actual harm by using a "sound-alike" or "knockoff name."
The case concerned lingerie retailer Victoria's Secret, which had brought an action against a small Kentucky-based sex shop called "Victor's Little Secret," claiming that the name diluted its trade mark.Ultimately, the Supreme Court found that use of the name "neither confused any customers or potential customers, nor was likely to do so."Trade mark owners were not pleased with the ruling, and as a result legislators are now seeking to change the law.The proposed Trademark Dilution Revision Act of 2005 therefore amends the 1995 Federal Trademark Dilution Act by providing that: