Zazu Designs v. L'Oreal, S.A.

A L'Oreal (defendant) licensee wanted to launch a hair-coloring shampoo in 1985 and chose the name ZAZU. Zazu Hair Designs (Zazu Designs) (plaintiff) had already registered 'Zazu' as its salon trade name. L'Oreal twice contacted Zazu Designs and confirmed it did not sell products under that name, then began selling and advertising ZAZU products in 1986. Around the same time, Zazu Designs' owners were developing their own hair products and sending samples to friends, and in September 1986 began selling them in the salon. Zazu Designs sued for infringement and won an injunction plus $100,000 in lost profits and $1 million for corrective advertising. L'Oreal appealed.

Whether an unregistered trademark is enforceable by the first user only if that user makes public sales sufficient to put others on notice of the claim to the mark, rather than merely intending to use it or making token sales.