Ninth Circuit Vacates Injunction in Jack Daniel's Bad Spaniels Case

The U.S. Court of Appeals for the Ninth Circuit issued a decision on August 19, 2026, vacating a district court's permanent injunction against VIP Products LLC in its dispute with Jack Daniel's Properties, Inc. The case involves VIP's "Bad Spaniels" dog toy, which mimics the trade dress of Jack Daniel's whiskey bottle.

The court held that creating an association with a famous mark is insufficient to establish dilution by tarnishment. Plaintiffs must additionally prove that the association is likely to harm the mark's reputation. The decision noted that an offensive or scatological association alone does not necessarily damage reputation.

The Ninth Circuit further clarified that fame must be proven separately for each asserted mark. While Jack Daniel's established fame for its word mark and bottle trade dress, it failed to show that "OLD NO. 7" independently qualified as famous under the federal dilution statute. The court directed entry of judgment in VIP Products' favor on the tarnishment claim.

The ruling provides guidance on the limits of tarnishment claims in parody and humorous product cases.

Sources: https://www.jdsupra.com/legalnews/ninth-circuit-clarifies-the-limits-of-5877406/ https://trademarklawyermagazine.com/trademark-news/