Said and Nancy Ghusein (the Ghuseins) (plaintiffs) owned Eva’s Bridal Limited, a dress shop. The Ghuseins licensed the use of the “Eva’s Bridal” trademark to relatives, including Nayef Ghusein (Nayef) and his company, Halanick Enterprises, Inc. (defendant). The license agreement to Nayef did not require him to run his store in any particular way and did not retain any type of supervisory authority for the Ghuseins. Indeed, the Ghuseins acknowledged that they did not exercise any control over Nayef’s store. When the license agreement expired, Nayef continued to use the mark but stopped paying the royalties required under the agreement. The Ghuseins sued for trademark infringement. The district court dismissed the complaint, finding that the Ghuseins had abandoned the Eva’s Bridal mark by granting a naked license. The Ghuseins appealed.