This is one of the stages where Chanel and VCA could have an interesting legal battle - over whether the mark (in this case the Alhambra) is generic and thus unprotected/free to be used in the public domain. I am unsure if VCA has registered the mark with the US PTO, but if so, there is a presumption against the mark being generic unless and until another party argues the mark has become generic and can prove this. Even if the Alhambra is unregistered, VCA can still have established trademark rights to it under common law by using it in commerce. If Chanel in this case is able to prove that the mark is generic, then they are free to use it. If that is not able to be proven, then VCA will have to prove that there has been trademark infringement by Chanel, which involves a few different factors, most importantly whether there would be likelihood of confusion amongst the public/relevant customer base should Chanel continue to use the Alhambra symbol on their sweater (i.e. Would people see the sweater and think VCA made it because of the Alhambra pattern, whereas the garment actually has a different origin).
In sum, there are lots of different ways this could play out. And there you have your mini crash course in trademarks law [emoji23]
