Taylor Wine Co. (Taylor) (plaintiff) had 13 registered trademarks for the mark “Taylor” since 1927 for its wine business and had spent millions of dollars marketing Taylor wine products. Bully Hill Vineyards, Inc. (Bully) (defendant) was a winery owned by Walter S. Taylor. Bully began selling its wine products in 1970 using the brand “Bully Hill.” In 1977, Bully started marketing its wine products under the brand “Walter S. Taylor.” Taylor sued Bully, requesting an injunction barring Bully from using and infringing on Taylor’s trademark. The district court granted the injunction and barred Bully’s use of the word “Taylor” in the marketing and labeling of Bully wine products. Bully appealed this decision.