Sesame Street Not Happy With STX's "Happytime Murders" Movie

The wholesome and longstanding children's program Sesame Street is suing the studio STX over STX's "Happytime Murders" movie.  "Happytime Murders" is definitely not G-rated.  Apparently, Jim Henson's son, Brian, directed the movie which depicts Muppet-type characters in unsavory ways.  For example, some of the Muppet-like characters are prostitutes, others criminals of questionable character.  "Happytime Murders" is an adult film wherein the "actors" (including the Muppet-like characters) engage in various adult situations (sex, drugs, violence, etc.).  While STX claims that it worked with Jim Henson Co. (Jim Henson created many of the Sesame Street characters), it seems that Sesame Street (actually, the plaintiff is Sesame Workshop, a nonprofit organization) was not pleased with STX's use of the tagline "No Sesame. All Street."  This is what appears to have prompted Sesame Workshop to sue STX for trademark infringement.  Sesame Workshop claims that the tagline is a deliberate attempt to confuse consumers into believing that Sesame Street endorses or is otherwise associated with the movie. 

One of the claims by Sesame Workshop is dilution.  I have written about dilution before here.  Generally, dilution is defined as the lessening of the capacity of a famous mark (the mark must be "famous" in order to earn protection against dilution) to identify and distinguish its goods.  It involves two types of unauthorized use:  Blurring and Tarnishment.  Blurring is the whittling away of  an established trademark's selling power through its unauthorized use upon similar products.  Tarnishment is the linking of a mark to products of an inferior quality or when the mark is portrayed in an unwholesome or embarrassing context. 

For a refresher on trademark basics go here.