Supreme Court weighs in on Jack Daniel's vs. dog toy parody trademark case.

The US Supreme Court heard arguments on Wednesday in a case that could determine whether humorous products that parody a brand enjoy special protection from trademark claims under the First Amendment or whether funny knock-offs violate trademark law because they could confuse consumers or disparage the original product. The case involves a squeezy dog toy that mimics a bottle of Jack Daniel's whiskey but carries the words "Bad Spaniels" on the label. Jack Daniel's Properties argued the toy could confuse consumers about who made the product and could tarnish the company's reputation, while the dog toy company, Arizona-based VIP Products, said the toy is a parody, entitled to free speech protection.