A.J. Canfield Co. (Canfield) (plaintiff) was a bottler of soft drinks that became well known for producing “Canfield’s Diet Chocolate Fudge Soda.” Canfield attempted to trademark the term “chocolate fudge” in 1985, but the application was denied by the United States Patent and Trademark Office (USPTO) on the ground that the term was generic. Concord Beverage Co. (Concord) (defendant) began selling its own diet chocolate fudge soda in 1985. On August 30, 1985, Canfield filed for a preliminary injunction in the district court to prevent Concord from using the phrase “Diet Chocolate Fudge Soda” on Concord’s soft drinks, as it constituted trademark infringement. The district court denied Canfield’s preliminary injunction, and Canfield appealed.