Ty, Inc. (plaintiff) made pellet-filled plush animal toys called Beanie Babies. The Jones Group (Jones) (defendant) made pellet-filled plush race car toys called Beanie Racers. Jones began selling Beanie Racers in full awareness that Beanie Babies were already on the market and that consumers could be confused by the similarity in the two products' names. Ty sued Jones for trademark infringement and moved for a preliminary injunction, prohibiting Jones from marketing Beanie Racers pending the outcome of the suit. The judge ruled that, since both parties used "Beanie" in their product names, there was a more than negligible chance that consumers would be confused by the product similarities, and that Ty would suffer a greater harm if the judge wrongly denied the injunction than Jones would suffer if the judge wrongly granted the injunction. The judge granted Ty's motion but required Ty to post a substantial bond to compensate Jones, should Jones ultimately prevail, for any loss of business caused by the injunction. Jones appealed to the United States Court of Appeals for the Seventh Circuit.