Stork Restaurant, Inc. (Stork) (plaintiff) owned a large, upscale nightclub in New York City called “The Stork Club.” The Stork Club was one of the most well-known clubs in the country. Stork advertised the club heavily, the club was frequented by celebrities, and a movie was made about the club. Nicholas Sahati (defendant) began operating a small, humble bar in San Francisco called “Stork Club.” Stork sued Sahati for trademark infringement and sought an injunction enjoining Sahati from using the name Stork Club. The district court ruled in favor of Sahati. Stork appealed.