Smith, a Wal-Mart critic, created t-shirts and mugs with the word “Walocaust” on them. Wal-Mart asked Smith to cease creating these items and argued that it was a violation of its trademark right.
The ACLU of Georgia filed a lawsuit on Smith’s behalf and asked the court to clarify that Smith has a right to make these items. In response, Wal-Mart countersued Smith and asked the court to ban Smith from making anymore “Walocaust” items. Included in Wal-Mart’s countersuit was a request for damages that they claimed were necessary due to the diminished reputation Wal-Mart alleged it suffered from Smith’s items.
Eventually the case was brought to the Court of Appeals for the Eleventh Circuit, where the Court found that Smith's products were successful parodies of Wal-Mart's trademarks and therefore were protected from trademark infringement or trademark dilution claims. The Court granted Smith summary judgment as a result.