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"The only thing necessary for the triumph of evil is for good men to do nothing"
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Ty Inc. v. Ruth Perryman, 306 F.3d 509 (7th Cir. 2002)

PLAINTIFF: Ty Inc., the manufacturer of Beanie Babies, the well-known beanbag stuffed animals, brought this suit for trademark infringement against Ruth Perryman.

DEFENDANT : Perryman sells second-hand beanbag stuffed animals, primarily but not exclusively Ty’s Beanie Babies, over the Internet. Her Internet address (“domain name”), a particular focus of Ty’s concern, is IB. She has a like-named Web site (http://www.bargainbeanies.com) where she advertises her wares.

The district court granted summary judgment in favor of Ty and entered an injunction that forbids the defendant to use “BEANIE or BEANIES or any colorable imitation thereof (whether alone or in connection with other terms) within any business name, Internet domain name, or trademark, or in connection with any non-Ty products.”

Court of Appeals stated, "Confusion is not a factor here" and "Perryman is not a competing producer of beanbag stuffed animals, and her Web site clearly disclaims any affiliation with Ty" and "Ty’s trademarks are household words".

"You can’t sell a branded product without using its brand name, that is, its trademark. Supposing that Perryman sold only Beanie Babies (a potentially relevant qualification, as we’ll see), we would find it impossible to understand how she could be thought to be blurring, tarnishing, or otherwise free riding to any significant extent on Ty’s investment in its mark. To say she was would amount to saying that if a used car dealer truthfully advertised that it sold Toyotas, or if a muffler manufacturer truthfully advertised that it specialized in making mufflers for installation in Toyotas, Toyota would have a claim of trademark infringement. Of course there can be no aftermarket without an original market, and in that sense sellers in a trademarked good’s aftermarket are free riding on the trademark. But in that attenuated sense of free riding, almost everyone in business is free riding."

"We surmise that what Ty is seeking in this case is an extension of antidilution law to forbid commercial uses that accelerate the transition from trademarks (brand names) to generic names (product names)."

"We cannot imagine a state of facts consistent with the extensive record compiled in the summary judgment proceeding that could possibly justify an injunction against Perryman’s representing in her business name and Internet and Web addresses that she is doing what she has a perfect right to do, namely sell Beanie Babies. " Partially reversed and remanded.

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