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Trademark tarnishment is a kind of dilution (the other being blurring). In this case, I think it will be hard to argue tarnishment and easier to argue blurring.

The real point I was trying to make, though, is that a court might find in his favor, and it wouldn't really be "a sad day for every entrepreneur without Chinese contacts". It would be a reasonable decision. Finding against them might also be a reasonable decision, though I'm prone to want to protect satire as much as possible. :)




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