Opinion for the Court filed by Circuit Judge RUTH BADER GINSBURG.
The Blinded Veterans Association (BVA or the Association) sought to enjoin the Blinded American Veterans Foundation (BAVF or the Foundation) from using the words “blinded” and “veterans” in its name and from using the initials “BAV” as an acronym. BVA contended that BAVF’s name was confusingly similar to BVA’s and would deceive the public into thinking BAVF was BVA. The district court agreed, concluding that BAVF had infringed BVA’s trademark. That court therefore enjoined BAVF from using the name “Blinded American Veterans Foundation,” the initials “BAV” or “BAVF,” and “any name in which the words ‘veterans,’ and ‘blind’ or ‘blinded,’ are employed as noun and modifying adjective.”
Blinded Veterans Ass’n v. Blinded Am. Veterans Found.,
I.
Appellee Blinded Veterans Association is a nonprofit organization founded in 1945 by a group of blinded World War II veterans. BVA was incorporated in New York in 1947 and was chartered by an act of Congress in 1958. Id. at 443. The Association has used the initials “BVA” as its logo since 1945. Id. at 445. BVA provides services for veterans who originally could see but have lost their sight, even if their blindness is not service-connected. Id. at 443. The Association’s services and activities for its constituency include arranging for rehabilitation and job training and placement, advising on claims for government benefits, testifying before Congress, joining litigation likely to benefit blinded veterans, sponsoring events to publicize the plight of blinded veterans, and publishing a newsletter, the “BVA Bulletin,” containing information of interest to blinded veterans. Id. at 444.
BVA has approximately 6,500 members; it employs sixteen persons on its head *67 quarters staff in Washington, D.C. and eight field representatives outside the nation’s capital. Id. The Association’s annual operating budget is just under $1.5 million. Seventy percent of BVA’s income represents contributions derived from direct mail solicitations; to gain these contributions, BVA mails more than four million solicitations per year. Id. The remainder of BVA’s income comes from membership dues and contracts with the Department of Labor and the Veterans Administration to provide rehabilitation and employment services for blinded veterans. Id. at 443-44.
Appellant BAVF is a nonprofit District of Columbia corporation founded in September 1985 by three former officials of BVA. 1 Aside from the three founders, who also serve as BAVF’s officers and directors (and who are employed full-time elsewhere), BAVF has no “members” or paid employees. Id. at 444. The Foundation maintains no office of its own; it operates from “free ‘desk space’ in a local consulting firm’s office.” Id. At the time of trial, the Foundation had a balance of approximately $10,000 in a bank, “the name of which [BAVF’s] president could not then remember.” Id.
BAVF’s charter defines the Foundation’s purpose broadly as assisting veterans with “sensory disabilities such as visual impairment, hearing impairment, speech impediments, etc.” Id. at 443. Nevertheless, the Foundation has so far directed its efforts exclusively toward sightless former servicemembers. Id. at 444. BAVF has held Flag Day celebrations; it has presented awards to journalists and members of Congress for demonstrating an interest in handicapped veterans’ issues; and it commissioned a recorded reading of the Constitution, which it mailed postage free to 17,-500 blinded veterans nationwide. Id. In addition to these principal activities, BAVF found employment for three blinded veterans, and donated some “trial lenses” to the Veterans Administration. Id. BAVF plans to develop an inexpensive “folding cane” and to set up an outreach program for veterans blind in one eye and suffering from diabetes. Id. BAVF also “aspires someday to build a rehabilitation center.” Id.
According to BAVF’s president, it never occurred to the three BAVF founders that the name “Blinded American Veterans Foundation” resembles the name of the founders’ former employer, “Blinded Veterans Association.”
See
Joint Appendix (J.A.) at 389.
2
There can be no doubt, however, that the names are similar. BAVF’s original logo — “BAV” in large type, followed by “foundation” in small type below — also bore a marked resemblance to the Association’s “BVA.”
See
In 1986, BAVF applied to 552 local campaign organizations involved in the Combined Federal Campaign (CFC). Those organizations listed BAVF, alphabetically ahead of BVA, as a prospective recipient of CFC funds. Id. at 444. Despite its lack of significant accomplishments at that point, BAVF did rather well in its initial fundraising foray: the Foundation’s 1986 income totalled between $35,000 and $40,000, half from CFC pledges and half from corporate contributions. Id.
On June 5, 1986, BVA filed an action in the district court under section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a) (1982), 3 *68 seeking to enjoin the Foundation “from using the words ‘Blinded’ and ‘Veterans’ in its name, and from using the initials ‘BAV’ to describe itself.” Complaint for Injunction, Blinded Veterans Ass’n v. Blinded Am. Veterans’ [sic] Found., C.A. No. 86-1563 at 8 (D.D.C. June 5, 1986). The complaint sought no damages. BVA alleged that BAVF’s “deliberate choice of a too-similar name ... constitutes unfair competition, false representation and description, false advertising, palming off, and deception of the public, and injures the good will of [BVA].” Id. at 1.
On March 8, 1988, the district court decided that BAVF had infringed BVA’s trademark. The court therefore enjoined BAVF from using the name “Blinded American Veterans Foundation,” the initials “BAV” or “BAVF,” and any name in which “veterans” and “blind” or “blinded” appear as noun and modifying adjective.
The district court ruled first that the term “blinded veterans” is not a “generic term ... incapable of acquiring trademark significance.” Rather, the term is “at the least, a ‘descriptive term’ in trademark parlance, which is entitled to protection against infringement if it has, over time, acquired in the mind of the relevant public a ‘secondary meaning.’ ” Id. at 445. The court next concluded that “Blinded Veterans Association” has acquired a secondary meaning. As evidence, the court relied on the effort and expense that have gone into BVA’s continuous promotion of itself “as the preeminent private voluntary proponent of the interests of blinded former U.S. service personnel” and of its services for blinded veterans. Id. The court added that its conclusion concerning secondary meaning was “reinforced ... by both BAVF’s startling success in its maiden fundraising venture with no history of significant accomplishment, and by the tenacity with which it seeks to preserve its right to use the name it has chosen for itself.” Id.
Finally, the district court found it likely that potential contributors would confuse BVA and BAVF. BVA’s name is “easily misapprehended by intending benefactors even when no alleged imposter is on the scene,” the court observed, citing mistaken variations of BVA’s name on contributions and bequests clearly intended for the Association. Id. at 446 & n. 3. “When [BAVF’s] name is offered as an alternative,” the court reasoned, “the potential for confusion approaches totality.” Id. at 446. The court also credited the results of a survey conducted by a University of Maryland professor of English and linguistics. That survey presented three lists of organizational names, one with only BVA’s and BAVF’s names and two with other names as well, to groups of between thirty and fifty-eight college students. The results of these tests “demonstrated that a substantial majority of the subjects either did not perceive a distinction between BVA and BAVF, or so garbled their names as to create a genuine doubt as to which they had in mind.” Id. The court acknowledged that the tests were not a “market survey.” Id. It doubted whether such a survey would be “practicable” in this case, however; and it concluded that, in any event, a market survey “would add little to the commonsense [sic] inference (which the test results confirm) that ordinary contributors believe one organization soliciting for sightless veterans is as good as another, because the ultimate beneficiaries are ostensibly the same.” Id.
BAVF appealed, arguing that “blinded veterans” is a generic term incapable of acquiring trademark protection even if the term has acquired secondary meaning. Alternately, if secondary meaning is relevant, the Foundation faults the district court for not requiring survey evidence and for focusing on the duration of BVA’s use of its *69 name and logo and the efforts and expense that have gone into the Association’s self-promotion rather than on the effects of those factors on the public’s perceptions.
BVA offers three separate grounds for affirming the district court’s decision: trademark infringement, violation of BVA’s congressional charter, and “passing off.” We hold that the term “blinded veterans” is generic and therefore not entitled to trademark protection. We further conclude that BVA’s charter does not prohibit other organizations’ use of that term in their names or their use of the initials “BAV” or “BAVF.” BVA’s passing off claim, however, remains viable. We therefore vacate the district court’s judgment and remand for that court’s determination whether BAVF is passing itself off as BVA.
II.
A. Trademark Infringement
The existence and extent of trademark protection for a particular term depends on that term’s inherent distinctiveness. Courts have identified four general categories of terms: (1) generic, (2) descriptive, (3) suggestive, and (4) arbitrary or fanciful. These groupings are not airtight, however. As the Fifth Circuit cautioned:
These categories, like the tones in a spectrum, tend to blur at the edges and merge together. The labels are more advisory than definitional, more like guidelines than pigeonholes. Not surprisingly, they are somewhat difficult to articulate and to apply.
Zatarains, Inc. v. Oak Grove Smokehouse, Inc.,
The first category consists of “generic” terms.
4
A generic term is one commonly used to denote a product or other item or entity, one that indicates the thing itself, rather than any particular feature or exemplification of it.
See Liquid Controls Corp. v. Liquid Control Corp.,
Descriptive terms, which compose the second category, directly describe a partic
*70
ular quality, function, or characteristic of a product or service.
7
Because descriptive terms are thus not inherently distinctive, they acquire trademark protection only upon proof of secondary
meaning
— ie., upon proof that the public recognizes only one source of the product or service.
See Kellogg Co. v. National Biscuit Co.,
The third category consists of “suggestive” terms. These are terms that do not directly describe a product or service, but suggest some quality of the article. 8 As one court usefully stated:
A term is suggestive if it requires imagination, thought and perception to reach a conclusion as to the nature of goods. A term is descriptive if it forthwith conveys an immediate idea of the ingredients, qualities or characteristics of the goods.
Stix Prods. Inc. v. United Merchants & Mfrs., Inc.,
“Arbitrary” and “fanciful” terms compose the fourth category. An arbitrary term is one which is commonly used in the language, but has no intrinsic connection to the product. 9 A fanciful term is one coined for the purpose of serving as a trademark. 10 Because arbitrary and fanciful terms are inherently distinctive, they are protectable without proof of secondary meaning. See McCarthy § 11:2 at 435.
The threshold issue for this court is whether “blinded veterans” is generic, and therefore unprotectable as a trademark,
11
or descriptive, and thus protectable upon
*71
proof of secondary meaning.
12
The district court’s rationale for finding the term descriptive is not apparent. The court stated first that “blinded” and “veterans” might be generic when used separately, as in “the blinded persons association” or “the veterans association,” but then immediately concluded that together the words are descriptive.
Blinded Veterans Ass’n,
Because “blinded veterans” is not a registered trademark, the burden was on BVA to prove that the term is not generic.
See id.; Reese Publishing Co. v. Hampton Int’l Communications, Inc.,
A term need not be the sole designation of an article in order to be generic,
see
McCarthy § 12:2 at 525-26; the test for genericness is whether the public perceives the term primarily as the designation of the article,
see id.
§ 12:2 at 522-23. “Blinded veterans” appears to fit that test. It is difficult to imagine another term of reasonable conciseness and clarity by which the public refers to former members of the armed forces who have lost their vision.
13
Courts have found generic other terms that seem less distinctly apt denotations of their respective articles.
See, e.g., National Conf. of Bar Examiners,
Just as “blinded” would be generic when used with “the blinded persons association,” or “veterans” with “the veterans association,”
B. BVA’s Congressional Charter
BVA argues that, regardless of whether “blinded veterans” is protectable as a trademark, this court can affirm the district court’s injunction on the basis of BVA’s congressional charter. That charter provides:
[BVA] and its duly authorized regional groups and other local subdivisions shall have the sole and exclusive right to have and use in carrying out its purposes the name Blinded Veterans Association and such seals, emblems, and badges as the corporation may lawfully adopt.
36 U.S.C. § 867 (1982). The Association asserts that this charter grants BVA not only the exclusive use “of the precise name ‘Blinded Veterans Association’ (and the letters ‘BVA’), but also the right to prevent anyone else from using a confusingly similar name or logo.” Brief for Appellee at 14. For support, BVA relies on
San Francisco Arts and Athletics, Inc. v. United States Olympic Committee,
A comparison of BVA’s and USOC’s charters readily reveals a crucial distinction between SFAA and this case. USOC’s charter grants it the exclusive use not only of its name per se, but also of the word “Olympic.” See id. 15 BVA’s charter, however, gives the Association exclusive use only of the name “Blinded Veterans Association” and the specific symbols BVA adopts. See 36 U.S.C. § 867. BVA’s charter does not extend to the words “blinded veterans” any more than it does to the individual words “blinded,” “veterans,” or “association.” Given the clarity of the confined statutory language, unclouded by the sparse legislative history, see, e.g., H.Rep. No. 2323, 85th Cong., 2d Sess. 1-2 (1958), we find no basis for believing that Congress intended the scope of the charter to extend beyond its literal terms. 16 We therefore hold that BAVF has not violated BVA’s charter.
C. Passing Off 17
Even if “blinded veterans” is generic, BVA asserts,' BAVF may be enjoined from passing itself off as BVA. Case law in this area is not perspicuous; there is;o however, support for BVA’s contention. For the reasons stated herein, we conclude that BVA *73 may, dependent upon further proceedings in the district court, succeed in obtaining limited relief to prevent BAVF from passing off.
If the name of one manufacturer’s product is generic, a competitor’s use of that name, without more, does not give rise to an unfair competition claim under section 43(a) of the Lanham Act.
See Liquid Controls Corp. v. Liquid Control Corp.,
In either situation, the subsequent competitor cannot be prevented from using the generic term to denote itself or its product, but it may be enjoined from passing itself or its product off as the first organization or its product. Thus, a court may require the competitor to take whatever steps are necessary to distinguish itself or its product from the first organization or its product. In the paradigm case,
Kellogg Co. v. National Biscuit Co.,
*75
Under the approach set forth in these cases, a court will not act to remedy or prevent “confusion generated by a mere similarity of names.”
Liquid Controls,
In speaking of “passing off,” we do not mean to insinuate that the complaining party must prove intent on the part of the passer off. Because passing off developed as an offshoot of the common law of fraud and deceit, some courts in the past required proof that the defendant intended to deceive consumers.
See, e.g., O. & W. Thum Co.,
Although the district court did not credit the testimony advanced by BAVF concerning the Foundation’s conception, that court reported no conclusion, drawn from the evidence, that BAVF passed itself off as BVA. The court stated only that it disbelieved BAVF’s president’s testimony that it “never occurred” to him that BAVF’s name was similar to BVA’s and that BAVF did not plan to compete with BVA:
The Court ... finds that BAVF was deliberately named, and presently refuses to change its name, to enable it to capitalize upon the association in the mind of the charitable public between the words “blinded” and “veterans” (and the understandable sympathy they engender), and, thus, to compete with [BVA] for the funds of those inclined to give to such a cause.
True, the district court’s opinion is somewhat ambiguous on this score. In a footnote, for example, the district court adverted to the evident similarity of BAVF’s original logo — “ ‘BAV’ in large type, followed by the word ‘foundation’ in small-type subscript” — to BVA’s logo. Id. at 445 n. 1. The court also noted that, while the Foundation “professes to be concerned with veterans’ ‘sensory disabilities’ generally, its founders selected a name which adverts only to blindness.” Id. Although these findings, along with the fact that BAVF’s founders all had worked for BVA, suggest that BAVF’s founders purposely sought to create confusion, the court did not expressly find so.
Moreover, even if BAVF’s founders had intended to pass BAVF off as BVA, such an intent, although probative, would not conclusively establish unfair competition.
Cf. Schwinn Bicycle Co. v. Ross Bicycles, Inc.,
Taking into account the opacity of some of the decisional law in this area, and
*77
the district court’s understandable but incorrect assumption that trademark protection was available, we think it proper to permit the parties to submit additional evidence trained on the question whether people are likely to think that BAVF is actually BVA.
See Community for Creative Non-Violence v. Reid,
If the district court, on remand, finds from the evidence that BAVF is passing itself off as BVA, the court may order that BAVF distinguish itself from BVA to avoid confusion. This case obviously differs from
Kellogg
and other cases cited above because it involves the name of an organization rather than the name of a particular product. This difference precludes such a ready remedy as attaching the manufacturer’s name to the generic name of the product. The district court could, however, require BAVF to attach a prominent disclaimer to its name alerting the public that it is not the same organizatibn as, and is not associated with, the Blinded Veterans Association.
25
See N. Hess’ Sons, Inc. v. Hess Apparel, Inc.,
Conclusion
“Blinded veterans” is a generic term; BVA’s name and logo therefore are not entitled to trademark protection. BVA’s congressional charter also fails to provide a basis for relief; that charter protects BVA’s own name and logo, but it does not prevent BAVF’s use of a similar name and logo. BVA may be entitled to protection against passing off, however. If the district court determines that people will likely think that BAVF is BVA, it can fashion equitable relief in accordance with the considerations set forth in this opinion.
For the reasons stated, we vacate the judgment of the district court and remand for further proceedings.
It is so ordered.
Notes
.John Fales, President of BAVF, was a BVA employee from 1974 to 1982 and served as BVA’s National Outreach Employment Director from 1976 to 1982. Don E. Gamer, BAVF’s Treasurer, worked at BVA for over three years, and was the National Field Service Director of BVA until 1976. Dennis R. Wyant, BAVF’s Secretary, worked at BVA for over four years, serving as President of BVA in 1977. Brief for Appellee at 5. All three men are blinded veterans.
Blinded Veterans Ass’n v. Blinded Am. Veterans Found.,
. The district court disbelieved this testimony.
See
. That section provides:
Any person who shall affix, apply, or annex, or use in connection with any goods or services, or any container or containers for goods, a false designation of origin, or any false description or representation, including words or other symbols tending falsely to describe or represent the same, and shall cause such goods or services to enter into commerce, and *68 any person who shall with knowledge of the falsity of such designation of origin or description or representation cause or procure the same to be transported or used, shall be liable to a civil action by any person doing business in the locality falsely indicated as that of origin or in the region in which said locality is situated, or by any person who believes that he is or is likely to be damaged by the use of any such false description or representation.
15 U.S.C. § 1125(a) (1982).
.Generic terms are also called “common descriptive” terms, as distinguished from "merely descriptive" terms.
See Park 'N Fly, Inc. v. Dollar Park and Fly, Inc.,
.
See, e.g., National Conf. of Bar Examiners,
. Moreover, if a registered trademark becomes a generic denotation of a particular product or service, the mark’s registration may be can-celled. See 15 U.S.C. § 1064(c).
.
See, e.g., Application of Keebler Co.,
.
See, e.g., American Home Prods. Corp.
v.
Johnson Chem. Co.,
.
See, e.g., Fleischmann Distilling Corp.
v.
Maier Brewing Co.,
.
See, e.g., Polaroid Corp. v. Polaroid, Inc.,
.The name of a business enterprise, in contrast to the name of a product or service, is often referred to as a "trade name” rather than a "trademark." We use "trademark" here for two reasons. First, the protection accorded names of business enterprises and names of products and services are governed by the same basic principles. See McCarthy § 9:1 at 300-05. Second, “trade name” was sometimes used to refer generally to “nontechnical trademarks"— i.e., terms which could not, under the common law, be appropriated to the use of one party or, under the Lanham Act, be registered as a trademark. See R. Callman, Unfair Competition, Trademarks * Monopolies § 17.05 at 21-22 (4th ed. 1983) [hereafter Callman]. Consistent with contemporary understanding and usage, we denote as a "trademark” the name of a product, service, or business enterprise that may be appropriated to the use of one party under the common law or the Lanham Act.
. We need not deal separately with the question whether the initials "BVA" are generic; if the full name is generic, an abbreviation is treated similarly.
See National Conf. of Bar Examiners,
. The district court took pains to refer to blinded veterans by other terms,
e.g.,
"sightless former servicepeople” and "blinded former U.S. service personnel."
.The only relevant case cited by the district court on this question,
American Diabetes Association v. National Diabetes Association,
. USOC’s charter also grants it the exclusive use of the word "Olympiad,” the motto "Citius Aldus Fortius,” the familiar symbol of the International Olympic Committee — five interlocking rings — and the less familiar symbol of USOC— an escutcheon with a blue chief, red and white vertical bars on the base, and the five interlocking rings on the chief. See 36 U.S.C. § 380(c).
. Interpreting BVA’s charter as granting BVA the exclusive use of the term "blinded veterans” would require us to decide the constitutional question whether Congress may grant a private entity exclusive use of a generic term. The Supreme Court sidestepped this question in
SFAA,
apparently because it considered "Olympic” not generic.
See
. "Passing off" is also referred to as "palming off."
. In
Miller Brewing Co. v. Falstaff Brewing Co.,
. The Court further said that "[f]aimess requires that [Kellogg exercise its right to use the name ‘Shredded Wheat’] in a manner which reasonably distinguishes its product from that of [National Biscuit].”
. In
Kellogg
and
Singer,
the plaintiffs’ patents on the products had expired. Upon expiration of the patents, the Supreme Court held in both cases, the right to make the products passed to the public.
Kellogg,
. One commentator explains the results in some of these cases as predicated on the terms’ "dual usage": one portion of the relevant market recognized a term as the mark of a particular source, whereas another portion used the term generically.
See
McCarthy § 12:16 at 565-68. Although this explanation accurately accounts, in part, for some of the judgments,
see, e.g., DuPont Cellophane,
. Commentators sometimes refer to this association between a generic term and one particular source, arising normally from that source’s monopoly for an extended period, as "de facto secondary meaning.” See, e.g., McCarthy § 12:15 at 562-65. A generic term that acquires de facto secondary meaning is still not afforded trademark protection. See id. Nevertheless, as the cases cited above establish, a generic term with de facto secondary meaning may be protected against passing off, e.g., by requiring fair notice that a newcomer’s product or service does not come from the original source.
. Some courts, uneasy with abandoning the intent touchstone altogether, adopted the notion of "constructive fraud,” ie., presuming intent from the results of the defendants’ actions. See Callman § 21.40 at 160.
. Because we have ruled out the question of trademark protection, BVA is not called upon to show "secondary meaning" in that setting. BVA nevertheless must show, analogously, what has been called “de facto secondary meaning” — i.e., that people associate the generic term "blinded veterans" with BVA. See supra note 22.
. Disclaimers may sometimes have the counterproductive effect of generating the impression "that the defendant is anxious to avoid being confused with an inferior competitor and that he himself is the original bearer of the famous name.” Callman § 20.35 at 296. To avoid such an impression in this case, the district court could require that the disclaimer state, for example, that BVA has been in existence since 1945, or was chartered by Congress in 1958.
. BAVF apparently offered to change its name to any one of six variations, all of which contained the terms "Blind” or "Blinded” and "American” and “Veterans” and “Foundation."
See
Reply Brief for Appellant at 16. The Foundation, however, "refuse[d] to adopt another [name] which does not also include the words 'blinded’ and ‘veterans.’ ”
. BVA also urges this court, somewhat ambiguously, to consider the effect of the District of Columbia nonprofit corporation statute, which provides that the name of any corporation organized under the statute “[s]hall not be the same as, or deceptively similar to, the name of ... any corporation created pursuant to any special act of Congress to transact business or conduct affairs in the District." D.C.Code § 29-507(2) (1981). BVA made no claim, and the district court made no findings, under this provision. In any event, the statute does not appear to create a private right of action for trademark infringement or unfair competition, but simply governs the mayor’s approval of articles of incorporation. Thus, a person or corporation may appeal the mayor's disapproval to a court, see id. § 29-595, but the structure of the statute as a whole does not suggest that, under D.C. Code § 29-507, another corporation may sue a D.C. corporation with a deceptively similar name.
