Defendant Tour 18 I, Ltd. appeals the district court’s judgment that it infringed and diluted the plaintiffs’ service marks and one of the three golf-hole designs at issue, and it challenges the district court’s injunction as vague, punitive, and overly broad.
See Pebble Beach Co. v. Tour 18 I, Ltd.,
*533 I. BACKGROUND 1
Defendant-appellant-cross-appellee Tour 18 I, Ltd. (Tour 18) owns and operates a public golf course in Humble, Texas named “Tour 18.” Tour 18 began life as a limited partnership that subsequently merged into Tour 18, Inc., which also owns and operates a “Tour 18” public golf course in Flower Mound, Texas. Tour 18 has created these two golf courses exclusively of golf holes copied from famous golf courses across the country. The Tour 18 course in Humble, Texas has three golf holes that are copies of golf holes from golf courses owned and operated by plaintiffs-appellees-eross-appellants Pebble Beach Co. (Pebble Beach); Resorts of Pinehurst, Inc. (Pinehurst); and Sea Pines Co., Inc. (Sea Pines) (collectively, the Plaintiffs).
A The Plaintiffs
The Plaintiffs’ public courses are all part of expensive, destination golf resorts, which advertise nationally and draw customers from across the country, including Texas. 2 All three courses have hosted prestigious professional golf tournaments, many of which are nationally televised, and have been written up in numerous unsolicited articles, showering the courses with praise. All three courses are consistently ranked among the top golf courses in the United States.
Pebble Beach is located in Pebble Beach, California. Tour 18 copied the fourteenth hole from Pebble Beach Golf Links, one of five courses that Pebble Beach operates in the area. The course is located along the scenic shore of the Pacific Ocean and has been in operation since 1919. Green fees to play the course are $245 for the general public and $195 for guests staying at the resort.
The district court described Pebble Beach’s par-five fourteenth hole as a
dog-leg right that is ranked as Pebble Beach’s number one handicap hole, identifying it as the most difficult hole on the course. The 14th Hole is not adjacent to the Pacific Ocean, but it provides golfers with a view of the ocean from the tee box and while walking from the tee box to the green. Its fairway is lined with tall cypress and oak trees. One of the most notable features of Hole 14 is the large sand bunker guarding the left side of the green. In one of its brochures, Tour 18 touts this bunker as “one of the most critical bunkers in golf.”
Pebble Beach,
Pinehurst is located in Pinehurst, North Carolina. Tour 18 copied the third hole from *534 the Pinehurst No. 2 course, one of seven courses Pinehurst operates in the area. The Pinehurst No. 2 course was designed by Donald Ross, who is considered one of the greatest golf-course architects. The No. 2 course is considered to be his mаsterpiece. The first nine holes of the course began operation in 1903. Green fees are $145.
The Pinehurst No. 2 course’s third hole is a par four with “a natural area of sand interspersed with clumps of wire grass, which is indigenous to the local area, that extends between 200 and 300 yards along the right side of the fairway. Adjacent to the natural area is a sand cart path.” Id. at 1529. While the golf course is famous among golfers, the third hole is not. The third hole is not the course’s signature hole, and Pine-hurst does not emphasize the hole in its advertisements or other promotional material. Pinehurst owns a federal service-mark registration in the “Pinehurst” mark for golf services, but does not have a federal trademark registration for, or copyright or design or utility patent on, the design of the third hole.
Sea Pines is located on Hilton Head Island, South Carolina. Tour 18 copied the eighteenth hole from Harbour Town Golf Links, the most famous of Sea Pines’s golf courses. The course was designed by Pat Dye, a preeminent golf-course designer, and Jack Nicklaus, who is considered to be one of the greatest golfers of all time and is also an accomplished golf-course designer. The course is distinguished by the presence of a lighthouse behind the eighteenth green. The course has been in operation since 1969, and construction of the lighthouse was completed in 1970. Green fees are $164.
The lighthouse that can be seen from Har-bour Town’s par-three eighteenth hole
is octagonal in shape with red and white striping. While the lighthouse is visible from the tee box and fairway of the 18th Hole, it is not physically on the golf course. The lighthouse is actually situated 100 feet from the 18th green across a small inlet of water leading to the Harbour Town marina.... [Tjhere was testimony at trial that because of the location of the lighthousе, many golfers use it as a target to line up their tee shots. However, according to [the developer of the course], his placement of the lighthouse in relation to the 18th hole was not to create a target for golfers, but to guarantee exposure for the lighthouse on television during professional tournaments.
Id. at 1530. Sea Pines’s predecessors built the lighthouse and later sold the physical structure to another company in 1984, which then sold it to Prudential Bache-Fogelman Properties (Fogelman). Sea Pines entered into a licensing agreement with Fogelman to allow Fogelman to use depictions of the lighthouse.
The eighteenth hole of Harbour Town Golf Links is one of the most famous holes in golf and is the course’s signature hole. Sea Pines emphasizes the hole in Harbour Town’s advertisements and promotional materials. The lighthouse’s association with the hole has led to the hole commonly being referred to as the “Lighthouse Hole.” Sea Pines does not own a federal service-mark registration for the “Harbour Town” mark. The design of the lighthouse is not protected by a copyright or design or utility patent. Sea Pines does not own a federal service-mark registration for the lighthouse for golfing services. The design of the eighteenth hole is not protected by a copyright or design or utility patent; nor does Sea Pines own a federal trademark registration for the design of the eighteenth hole.
B. The Defendant
In 1992, Tour 18 opened its golf course in Humble, Texas. The course consists of a collection of replica golf holes from sixteen famous golf courses. The first hole is a replica of the eighteenth hole of Harbour Town Golf Links including a smaller scale, nonfunctioning replica lighthouse. The third hole is a replica of the third hole of the Pinehurst No. 2 course, and the thirteenth hole is a replica of the fourteenth hole of Pebble Beach Golf Links. The Flower Mound, Texas Tour 18 course has a replica of the Harbour Town eighteenth hole including lighthouse as its seventh hole. These replica golf holes were created using topographic *535 maps procured from third parties and videotapes of the golf holes.
Tour 18 markets itself as “America’s Greatest 18 Holes.” It places advertisements in regional and national publications. In advertisements and promotional materials, Tour 18 identifies the golf holes that it has copied by using the trademarks of the original courses and refers to the golf holes by common nicknames like the “Lighthouse Hole,” the “Blue Monster,” and “Amen Corner.” It uses the Plaintiffs’ marks, “Pebble Beach,” “Pinehurst,” “Harbour Town,” and depictions of the lighthouse, extensively in its advertisements and promotional materials. These materials regularly include pictures of Tour 18’s replica lighthouse. The Tour 18 scorecard includes the Plaintiffs’ marks to identify the replica golf holes. For example, “Pebble Beach 14” is printed next to the number 13. A picture of the replica lighthouse appears on the back of the scorecard. Tour 18’s yardage guide has a picture of its replica lighthouse on the cover and contains descriptions of the golf holes and the history of each copied golf hole. Signage at each hole indicates the golf hole that has been • copied and describes the original hole. The sign at the Harbour Town replica refers to it as “The Lighthouse Hole.” Additionally, Tour 18 uses the Plaintiffs’ marks on its menu at its restaurant, offering “The Harbour Town” hamburger, “The Pinehurst” tuna salad, and “Pebble Beach” French toast.
Tour 18 includes disclaimers on the course and in some advertisements and promotional material. On its scorecard аnd in its yardage guide, Tour 18 includes the following-disclaimer: “The design of this course was inspired by great holes from 16 different golf courses. None of the courses endorse, sponsor, or are affiliated with Tour 18.” The same disclaimer is on a sign at the first tee. Additional similar disclaimers are on signs at each golf hole stating, for example, “The design of this hole was inspired by the famous 14th Hole at Pebble Beach. Tour 18 is not affiliated with, endorsed, or sponsored by Pebble Beach.” A promotional brochure with pictures of the replica golf holes contains the Plaintiffs’ marks on the pictures of each replica golf hole and a notice below the last photo stating: “Actual Photographs taken at TOUR-18-Houston.” However, several advertisements and promotional materials do not contain any disclaimers. For example, an issue of Metro Houston Golfer has a picture of the replica lighthouse on its cover and a detailed Tour 18 advertisement inside, but includes no disclaimer in the magazine. Also, a Tour 18 mailer which includes a large drawing of the replica lighthouse with the phrase “Harbour Town Golf Links-the Lighthouse Hole” without any disclaimer.
Tour 18 charges green fees of $55 during the week and $75 on weekends. While not as expensive as the green fees at the Plaintiffs’ courses, these green fees are higher than the average green fees at comparable daily-fee courses in the Houston area.
C. District Court Proceedings
The Plaintiffs filed suit against Tour 18 asserting federal claims under the Lanham Act, 15 U.S.C. §§ 1051-1127, for service-mark and trade-dress infringement, unfair competition, and false advertising.
See Pebble Beach,
After a bench trial, the district court issued an excellent opinion and entered judgment for the Plaintiffs on their infringement, dilution, and unfair competition claims in relation to Tour 18’s use of their names and the image of the lighthouse, and the court entered judgment for Sea Pines in relation to Tour 18’s copying of its golf-hole design. See id. at 1554, 1561, 1567. The district court entered judgment for Tour 18 on the remainder of the PÍaintiffs’ claims and entered judgment for 'the Plaintiffs on all of Tour 18’s counterclaims. See id. at 1561-63, 1567-71. *536 The district court denied the Plaintiffs’ requests for damages, an accounting of profits, and attorneys’ fees, but it entered an injunction against Tour 18 requiring it to (1) cease using Pebble Beach and Pinehurst’s marks, except to inform the public of the golf holes it copied; (2) cease using Sea Pines’s marks and images of the lighthouse, without any exceptions; (3) remove the replicas of Sea Pines’s lighthouse from both of its courses; (4) include a conspicuous disclaimer in all advertisements, promotional material, and informational guides; (5) maintain the disclaimers on the course; and (6) make no claims of use of original blueprints, maps, or other data in the construction of the course without a disclaimer. See id. at 1571-78. The district court has partially stayed the injunction pending appeal in relation to the requirement of removing the replica lighthouses. Tour 18 and the Plaintiffs now appeal.
II. DISCUSSION
Tour 18 appeals the district court’s judgment that it infringed and diluted the Plaintiffs’ service marks and Sea Pines’s trade dress and that it competed unfairly. Tour 18 also appeals the district court’s injunction, claiming that it is overly broad, punitive, and vague. The Plaintiffs cross-аppeal the district court’s judgment that Tour 18 did not infringe or dilute Pebble Beach and Pine-hurst’s trade dress, its injunction as providing inadequate relief, and its denial of an accounting of profits and an award of attorneys’ fees. We consider each issue in turn.
A. Infringement
For the Plaintiffs to prevail on their service-mark and trade-dress infringement claims, they must show (1) that the mark or trade dress, as the case may be, qualifies for protection and (2) that Tourl8’s use of the mark or trade dress creates a likelihood of confusion in the minds of potential consumers.
See Taco Cabana Int’l, Inc. v. Two Pesos, Inc.,
The same tests apply to both trademarks and trade dress to determine whether they are protectible and whether they have been infringed, regardless of whether they are registered or unregistered.
See Two Pesos, Inc. v. Taco Cabana, Inc.,
1. Standard of review
We review the district court’s conclusions of law de novo arid its findings of fact for clear error.
See Joslyn Mfg. Co. v. Koppers Co.,
2. Protectible marks and trade dress
The district court considered the Plaintiffs’ marks, “Pebble Beach,” “Pinehurst,” and “Harbour Town,” and the image of the lighthouse and found them to be protectible.
See Pebble Beach,
a. golf-hole designs
Turning first to the district court’s traditional trade-dress analysis of Tour 18’s challenge to the protectibility of the designs of the Plaintiffs’ golf holes, Tour 18 attacks the district court’s findings that a golf-hole design is nonfunctional and that Sea Pines’s golf-hole design is protectible in that it is inherently distinctive or alternatively has acquired secondary meaning. The Plaintiffs challenge the district court’s findings that Pebble Beach and Pinehurst’s golf holes are not inherently distinctive and are therefore unprotectible, but they do not challenge its finding that neither golf-hole design has acquired secondary meaning.
i. functionality
The Lanham Act protects only nonfunctional distinctive trade dress; this limitation “serves to assure that competition will not be stifled by the exhaustion of a limited number of trade dresses.”
Two Pesos,
A collection of functional features in a product design does not necessarily make the combination of those features functional and therefore unprotectible.
See Sunbeam Prods.,
The district court determined that the golf-hole designs at issue here are nonfunctional, noting that there is an “unlimited number of alternative designs” to the Plaintiffs’ golf-hole designs and that no evidence indicated that the Plaintiffs’ designs are superior to the many available alternatives.
See Pebble Beach,
Tour 18 first attacks the district court’s finding that golf holes are nonfunctional by defining its product as a golf course that provides replicas of famous golf holes. It claims that such a product requires that it be able to copy famous golf holes in order to have any commercial success in delivering its product: a course copying famous golf holes. While Tour 18’s product may be a golf course the commercial success of which has been based upon copying golf holes, it nevertheless is still just a collection of golf holes. Features that contribute to the commercial success of a product are not thereby necessarily classed as functional. In
Sicilia Di R. Biebow,
this court rejected the argument that functionality should be defined in terms of commercial success or marketing effectiveness because such a definition would allow a second comer to copy the proteetible trade dress of a product whenever the product became successful and preferred by consumers.
See
Tour 18 then argues that every feature of a golf hole and how it is configured affects how the hole plays, making any golf-hole design functional. Without citing any authority, Tour 18 urges a rule that a feature or configuration of features is functional unless “a specific design can be made another way without affecting use, purpose, cost, quality or commercial desirability.” This rule is much broader than any applied in this circuit or by the Supreme Court and could conceivably render any design functional because
any
change would undoubtedly somehow affect cost, use, or commercial desirability. Additionally, the Supreme Court limited its statement that trade dress is functional if the trade dress is essential to the use or purpose of the product or affects the cost or quality of the product with the following language: “that is, if exclusive use of the features [or combination of features] would put competitors at a significant non-reputation-related disadvantage.”
Qualitex,
Next, Tour 18 contends that
Quali-tex
imposes as a threshold inquiry in the functionality analysis the question of whether the trade dress serves “any other significant function.”
See
Having rejected Tour 18’s challenges to the district court’s analysis, and after reviewing the evidence, we find that the district court did not clearly err in finding that the *540 Plaintiffs’ golf-hole designs are nonfunctional. 6
ii. distinctiveness
Trademarks and trade dress are distinctive and protectible if they serve as indicators of source.
See Taco Cabana,
The district court found that Pebble Beach and Pinehurst’s golf-hole designs were not inherently distinctive because they were variations on commonplace themes in the design of golf holes.
See Pebble Beach,
The Plaintiffs argue that the district court should have found Pebble Beach and Pinehurst’s golf holes to be inherently distinctive. However, Pebble Beach and Pinehurst’s golf-hole designs do not fall into any of the three inherently distinctive classifications. Arbitrary and fanciful marks or trade dress “bear no relationship to the products or services to which they are applied.”
Zatarains,
Tour 18 argues that Sea Pines’s golf-hole design is not protectible because a golf hole’s trade dress is generic and because, even if it is descriptive, the Plaintiffs failed to present evidence that demonstrates that Sea Pines’s trade dress has acquired secondary meaning. In general, a golf hole’s trade dress may be generic, but Sea Pines’s inclusion of the distinctive lighthouse in the design of the golf hole takes it out of the generic classification because it emphasizes the “individualized characteristics” of this particular golf-hole design rather than connoting golf holes in general.
See Zatarains,
As Sea Pines’s golf-hole design is not generic, it is protectible if it has acquired secondary meaning.
8
That a particular mark or trade dress has acquired secondary meaning can be proven by a consideration of the following evidence; (1) length and manner of use of the mark or trade dress, (2) volume of sales, (3) amount and manner of advertising, (4) nature of use of the mark or trade dress in newspapers and magazines, (5) consumer-survey evidence, (6) direct consumer testimony, and (7) the defendant’s intent in copying the trade dress.
See
Restatement,
supra,
§ 13 cmt. e;
see also Duraco Prods.,
The district court based its finding of secondary meaning upon Sea Pines’s extensive advertising; unsolicited publicity of the trade dress of Sea Pines’s golf hole, including the lighthouse, in golf publications; and Tour 18’s intent to copy and use the trade dress prominently in its advertising.
See Pebble Beach,
b. the lighthouse
Tour 18 does not challenge the protectibility of depictions of the lighthouse; rather, it challenges Sea Pines’s rights in the lighthouse. Tour 18 argues that Sea Pines no longer has any rights in the lighthouse because (1) it does not own the lighthouse and (2) by its course of conduct, it has abandoned the lighthouse as a mark. In response to the first argument, we adopt the reasoning of the district court:
The Lanham Act does not require a party to “own” a word, symbol, or other identifying mark before it may be granted protection from infringement. Rather, all that is required is that a party “use” the mark in commerce to identify its services and distinguish them from the services of others. 15 U.S.C. § 1127; see [Boston Prof'l Hockey Ass’n v. Dallas Cap & Emblem Mfg., Inc.,510 F.2d 1004 , 1014 (5th Cir.1975) ] (noting that under trademark law, a party acquires rights to a symbol in the public domain through use of the mark and the public’s association of the mark with the user).
Id. at 1541 (footnote omitted); see also 1 MCCARTHY ON TRADEMARKS, SUprO, § 7:100-:101. Tour 18 styles its argument as attacking Sea Pines’s interest in the structure of the lighthouse itself and not in the image of the lighthouse, arguing that the only connection between the golf course and the lighthouse is that the lighthouse can be seen from the course. However, Harbour Town Golf Links was built by the same entity that constructed the lighthouse and the evidence demonstrates that the placement and design of the course and the lighthouse were specifically designed to create the relationship between the course and the lighthouse. This is not a case where the only connection is the coincidence of proximity or location. The connection between the course and the lighthouse is much greater and dates back to the conception of both. Sea Pines has used depictions of the lighthouse in relation to golfing services since 1969, and the district court did not clearly err in finding that the lighthouse has achieved secondary meaning in relation to golfing services in the minds of consumers. The sale of the lighthouse to Fogelman’s predecessor, while reserving trademark rights in depictions of the lighthouse, does not alter this finding.
In relation to abandonment, Tour 18 argues that Sea Pines’s failure to police third-
*543
party uses of the lighthouse as a mark has caused the mark “to lose its significance as a mark,” thus constituting abandonment under 15 U.S.C. § 1127. As Tour 18 argues, this form of abandonment does not require any intent to abandon on the part of Sea Pines.
See id.;
Restatement,
supra,
§ 30 cmt. c; 2 MoCaethy on Trademarks,
supra,
§ 17:8. However, the evidence shows, as the district court discussed, that Sea Pines has not failed to police third-party uses of depictions of the lighthouse; rather, it has aggressively policed third-party uses.
See Pebble Beach,
3. Likelihood of confusion
Next we turn to whether Tour 18’s use of the Plaintiffs’ marks and trade dress infringed the Plaintiffs’ rights. The touchstone of infringement is whether the use creates a likelihood of confusion as to the “source, affiliation, or sponsorship” of Tour 18’s golf course.
See Society of Fin. Exam’rs,
While noting that no golfer will stand on the tee at Tour 18 and believe that he or she is playing at Pebble Beach, Pine-hurst, or Harbour Town, in considering Tour 18’s use of the Plaintiffs’ marks and depictions of the lighthouse, the district court found that all seven digits of confusion weighed in favor of a likelihood of confusion as to whether the courses are otherwise affiliated.
See Pebble Beach,
Tour 18 attacks the district court’s finding of a likelihood of confusion based upon its consideration of evidence of actual confusion that consumers believed that Tour 18 had obtained “permission” to use the Plaintiffs’ marks and to copy their golf holes. Tour 18 argues that “permission” does not include a connotation of control and therefore does not express a relationship that is rele *544 vant to confusion as to source, affiliation, sponsorship, or approval. We disagree.
Permission is synonymous with approval and suggests some connection between the parties. The idea that one party has given permission to another implies a form of approval of the other’s activities.
See
Webster’s Third New International Dictionary 1683 (Philip Babcock Gove ed., 1963) (defining “permission” as “the act of permitting: formal consent: AUTHORIZATION” and “permit” as “to consent to expressly or formally”); William C. Burton, Legal Thesaurus 30, 383 (2d ed.1992) (including “consent to” among synonyms of “approve,” “permit” among synonyms of “approval,” and “approval” among synonyms of “permission”);
see also
Roget’s Desk Thesaurus 30, 397 (Joyce O’Connor ed., 1995) (same). For a party to suggest to the public, through its use of another’s mark or a similar mark, that it has received permission to use the mark on its goods or services suggests approval, and even endorsement, of the party’s product or service and is a kind of confusion the Lan-ham Act prohibits.
See Indianapolis Colts, Inc. v. Metropolitan Baltimore Football Club Ltd. Partnership,
The Plaintiffs’ survey was conducted among golfers who had played a round of golf at Tour 18. Tour 18 argues that the survey was flawed because, by relying upon “permission,” it created the possibility that those surveyed believed that permission was required, thereby skewing the result. But the survey asked whether Tour 18 “did get” or “did not get” pеrmission to use the Plaintiffs’ marks or to copy the Plaintiffs’ golf holes. This question asks what message Tour 18’s use of the Plaintiffs’ marks and trade dress conveyed, rather than whether Tour 18
needed
to get permission, which would focus on what those surveyed believed to be required. Although, this latter form is more problematic because it allows for the consumer’s misunderstanding of the law, rather than the defendant’s use of the marks, to be the basis for his belief, it has been accepted by other courts as probative as to confusion.
See, e.g., Indianapolis Colts,
In addition to the survey evidence, the district court relied upon the testimony of the witnesses that, before actually playing the course, they thought Tour 18 had obtained permission to use the Plaintiffs’ marks and trade dress; most notably, two witnesses
*545
testified that Tour 18’s advertising in particular caused their confusion.
See Pebble Beach,
i. Nominative use
Tour 18 asserts that it has used the Plaintiffs’ marks only to identify the Plaintiffs’ golf holes that it copied and that such use, as a matter of law, does not create a likelihood of confusion. The district court treated this argument by Tour 18 as a species of the fair-use defense and considered it after finding a likelihood of confusion.
See Pebble Beach,
Courts have long recognized that one who has lawfully copied another’s product can tell the public what he has copied.
See Saxlehner v. Wagner,
As the Ninth Circuit has recognized, where a nominative use of a mark occurs without any implication of affiliation, sponsorship, or endorsement—i.e., a likelihood of confusion—the use “lies outside the strictures of trademark law.”
New Kids on the Block,
The district court found that Tour 18 used the Plaintiffs’ marks as service marks to name its own products and to distinguish them from those offered by other golf courses.
See Pebble Beach,
In addition, Tour 18 argues that, because the allowable use of a mark in comparative advertising (a nominative use) will normally result in a positive finding among a majority of the digits of confusion, the traditional likelihood-of-confusion analysis cannot be applied. However, implicit in this argument is a misundei’standing of the likelihood-of-confusion analysis. The digits of confusion “are not an end in themselves, and all are not of equal significance. The [digits] serve only as guides on the analytical route to the ultimate determination of whether confusion is likely to result.”
Champions Golf Club,
5. Effect of Sears-Compco
In addition to its attack on the district court’s traditional trade-dress analysis, Tour 18 contends that it has the unfettered right to copy the Plaintiffs’ golf-hole designs and lighthouse under the Intellectual Property Clause of the Constitution.
See
U.S. Const. art. I, § 8, cl. 8. Tour 18 points to
Sears, Roebuck & Co. v. Stiffel Co.,
First,
Sears
and
Compco,
both decided the same day, concerned the preemption of
state
trade-dress protection by federal patent law and barred the use of
state
unfair-competition laws to prohibit the copying of products that are not protected by federal patents.
See Sears,
Second, the federal trademark laws are “other federal statutory protection,” and their protection of product designs and configurations does not conflict with the federal patent laws or the Intellectual Property Clause. The patent laws and the trademark laws have two entirely different and consistent purposes, addressing entirely different concerns.
See generally Thomas & Betts,
While the federal trademark laws provide a trademark or trade-dress owner indefinite protection unlike the limited-duration protection provided by the patent laws, traditional trade-dress analysis limits the scope of product designs or configurations that can be protected to avoid conflict between the two areas of law.
See Kohler Co. v. Moen Inc.,
Third, in the more than thirty years since
Sears-Compco,
Congress and the courts have recognized that federal unfair-competition law provides protection to product designs and configurations consistent with the patent laws.
See Bonito Boats,
For the above reasons, the Intellectual Property Clause, the federal patent laws, and the Sears-Compco-line of cases do not preclude federal trademark protection for product designs and configurations.
Accord, e.g., Kohler,
Finally, if the acid test of any theory is how it works in practice, we note that the application of traditional trade-dress analysis under the Lanham Act to the product configurations at issue here, the design of the Plaintiffs’ golf holes, has effectively left intact Tour 18’s right to copy the Plaintiffs’ golf holes, barring only its copying of the lighthouse.
B. Remedies
On appeal, Tour 18 and the Plaintiffs challenge the district court’s injunction as being too broad and too narrow, respectively. The Plaintiffs also claim error in the district court’s denial of an accounting of profits and an award of attorneys’ fees. We address each of these issues in turn.
1. Injunctive relief
Under the Lanham Act, the district court has the discretion to enter an injunction to prevent continued infringement or unfair competition.
See
15 U.S.C.
*550
§ 1116(a). The Texas anti-dilution statute also provides for injunctive relief to remedy any dilution.
See
Tex. Bus. & Com.Code AnN. § 16.29 (Vernon Supp.1998). We review the district court’s decision whether to grant or deny an injunction and the scope and form of the injunction for an abuse of discretion.
18
See Frostie Co. v. Dr. Pepper Co.,
The district court entered an injunction against Tour 18 limiting its use of the Plaintiffs’ marks, depictions of the lighthouse, Sea Pinеs’s trade dress, and claims that original blueprints or maps were used and requiring it to remove the replica lighthouses from both of its courses. 19 The district court allowed Tour 18 continued use of Pebble Beach and Pinehurst’s marks to inform the public of which golf holes it has copied, but the district court did not allow the same exception in relation to Sea Pines’s marks.
Tour 18 argues that the district court’s injunction is an abuse of discretion because (1) it limits legal activity that does not infringe or dilute the Plaintiffs’ marks and (2) it is vague in its requirements. Specifically, Tour 18 argues that
a. paragraph (1) impermissibly bars its use of Sea Pines’s marks, “Harbour Town” and “Harbour Town Golf *551 Links,” without allowing for Tour 18’s right to use the marks in truthful comparative advertising;
b. paragraph (2) is vague as to what “remove its replicas of the Harbour Town lighthouse from all Tour 18 golf courses” means, in that it is unclear whether this means “remove the entire lighthouse structure including its foundation; alter the lighthouse to look like a water tower, a different lighthouse or something other than a lighthouse; or just paint the red stripes black”;
c. paragraph (3) is overly broad in that it only allows Tour 18 to use Pebble Beach and Pinehurst’s marks to identify the golf holes it has copied and not in any other comparative advertising sense, such as to claim that its course is more fun than Pinehurst or Pebble Beach; 20 and
d. paragraph (5) is overly broad in limiting Tour 18’s use of claims of having used “maps or other data” in recreating its golf holes in that this limitation precludes Tour 18 from making claims based upon maps and blueprints created by its own efforts.
Tour 18’s challenges to paragraphs (1) and (3) will be considered in relation to the Plaintiffs’ related challenges to the injunction. Tour 18’s challenges to paragraphs (2) and (5) can be resolved by a cursory, reading of the district court’s opinion and of the injunction.
In relation to paragraрh (2), “remove” means “to change or shift the location, position, station, or residence of,” which does not include any connotation of alteration.
See
Webster’s ThiRD New International Dictionary,
supra,
at 1921. The district court’s amended injunction requires the complete removal of the structure from the golf course. This meaning is clear from the fact that the district court, in its original injunction, allowed for the parties to work out a solution that could include altering the structure, and when this failed, it ordered that the structure be removed.
See Pebble Beach,
In relation to paragraph (5), the plain language of the injunction does not bar all mention of any blueprints, maps, or other data. The injunction by its own language only limits references to “original” blueprints, maps, or other data, which does not include such items created by Tour 18. Tour 18 also argues that its blueprint and map claims did not contribute to confusion, but the district court found that “[l]ikely consumer confusion is reinforced by Tour 18’s advertisements and promotional materials which claim original blueprints and maps were used to copy plaintiffs’ holes.” Id. at 1545 (emphasis added). This finding is not clearly erroneous and supports this paragraph of the injunction. Paragraph (5) of the injunction allows Tour 18 to refer to blueprints and maps it created, but it must not do so in a way that suggests that they are original documents or data obtained from the Plaintiffs or that the Plaintiffs authorized them to use such data.
The Plaintiffs challenge the district court’s injunction because it allows Tour 18 to continue activities that contributed to the infringement and because the injunction fails to provide relief for their successful dilution claims. Specifically, the Plaintiffs argue (1) that, as the district court itself found, using disclaimers to alleviate any problems is ineffective; (2) that the injunction allows infringing conduct and dilution to continue by permitting Tour 18’s continued use of Pebble Beach and Pinehurst’s marks; and (3) that all uses of the Plaintiffs’ marks must be enjoined because Tour 18 was attempting to “cash in” on the Plaintiffs’ reputations.
First, as to disclaimers, the district court found that disclaimers were ineffective due to their absence or inconspicuousness on
*552
advertisements and promotional materials and due to Tour 18’s “prominent use” of the Plaintiffs’ marks.
See id.
at 1551. In contrast, conspicuous disclaimers that disclaim affiliation may reduce or eliminate confusion.
See, e.g., Soltex Polymer Corp. v. Fortex Indus., Inc.,
Second, as to the permitted continued use of the Plaintiffs' marks, the district court is allowing Tour 18 to use the Plaintiffs' marks only to identify the golf holes it copied. As noted in Part II.A.4, supra, this nominative use is outside the strictures of trademark law where it is done without any implication of affiliation, sponsorship, or approval. In addition, a clear nominative use does not create any likelihood of confusion. Further, it does not create any possibility of dilution by blurring because the use is one that links the mark to the markholder's goods or services. Such a use strengthens rather than blurs the identification of a mark with the markholder's goods. Cf. Smith,
Similarly, Tour 18’s challenge to the district court’s complete prohibition of the use of Sea Pines’s marks in paragraph (1) of the injunction has merit. For the same reasons that support Tour 18’s nominative use of Pebble Beach and Pinehurst’s marks, Tour 18 should be free to use Sea Pines’s marks, other than the lighthouse, in a nominative manner to identify the golf hole it has copied. Additionally, the removal of the lighthouse should not bar Tour 18 from identifying the golf hole as one copied from Harbour Town Golf Links. The lighthouse is part of Sea Pines’s trade dress, and despite being used by some golfers as a target, it is not part of the playing aspect of the golf hole any more than a tree, a mountain, a cloud, power lines, or other features in the distance are part of the playing aspect of a golf hole. To find otherwise would be inconsistent with our holding that Tour 18 can identify its golf holes as copies of Pebble Beach and Pine-hurst’s golf holes despite differences in the surroundings. The district court was concerned “that the lighthouse is so intertwined with Harbour Town Hole 18 in golfer’s [sic] minds that they constitute a single overall trade dress,”
Pebble Beach,
Additionally, Tour 18 contends that the district court fashioned the limitation on its use of the Plaintiffs’ marks too narrowly by enjoining other proper nominative uses of the marks. Tour 18 opines that it should be allowed to advertise, “You can have more fun at TOUR 18 than at Pebble Beach,” relying upon
Better Business Bureau,
In
Better Business Bureau,
the district court completely enjoined any use of the plaintiffs’ marks, which was considerably
*553
broader than the scope of conduct that the district court had adjudicated as misleading.
See
Otherwise unassailable activities may. be proscribed where a party has transgressed the governing legal standard.
See Taco Cabana,
Third, the Plaintiffs’ argument that an injunction must issue because Tour 18 was trying to “cash in” on the Plaintiffs’ fame and reputation has no merit. In both cases upon which the Plaintiffs rely, this court enjoined use of trademarks which were used to identify the defendants’ services and were chosen and designed specifically to appropriate the plaintiffs’ reputations.
See National Ass’n of Blue Shield Plans v. United Bankers Life Ins. Co.,
For the reasons discussed above, we reject nearly all of the Plaintiffs and Tour 18’s challenges to the district court’s injunction. In relation to Tour 18’s use of Sea Pines’s *554 service marks, we mоdify paragraphs (1) and (3) of the injunction to read as follows:
(1) Defendant and all persons in active concert or participation with defendant are permanently enjoined from using in connection with the promotion, advertising, or sale of golfing services, any depiction or photo of the Harbour Town lighthouse.
(3) Defendant and all persons in active concert or participation with defendant are permanently enjoined from using in connection with the promotion, advertising, or sale of golfing services, the service marks “PEBBLE BEACH,” “PEBBLE BEACH GOLF LINKS,” “PINEHURST,” “PINE-HURST No. 2,” “HARBOUR TOWN,” or “HARBOUR TOWN GOLF LINKS,” except that defendant may use these marks only to the limited extent necessary to inform the public which golf holes it copied. To comply with this section of the injunction, Tour 18 may use plaintiffs’ marks on its scorecard, yardage guide, and tee box signs. Additionally, Tour 18 may place these service marks in other printed materials only within a simple legend of the course’s' replicated golf holes. This legend shall include only the Tour 18 hole number, name of replicated hole, par, and yardage, similar to the legend contained within Tour 18’s current promotional brochure, specifically plaintiffs exhibit 103. Tour 18 must remove all other superfluous uses of the marks listed in this section from its written materials, including but not limited to, the Tour 18 promotional brochures, mailers, advertisements in independent publications, and restaurant menu.
2. Profits and attorneys’ fees
The district court denied the Plaintiffs’ request for an accounting of profits and reasonable attorneys’ fees.
See Pebble Beach,
a. accounting of profits
Section 1117(a) of the Lanham Act entitles a markholder to recover the defendant’s profits, subject to the principles of equity.
See
15 U.S.C. § 1117(a);
Maltina Corp. v. Cawy Bottling Co.,
The district court determined that an accounting of profits was inappropriate based upon (1) the lack of any evidence of lost or diverted sales, (2) the fact that the Plaintiffs only partially prevailed, and (3) the adequacy of injunctive relief.
See Pebble Beach,
The district court did err in placing weight on the fact that the Plaintiffs partially prevailed in denying an accounting of profits. The Supreme Court has held that the burden is upon the defendant to show that he made no profit from the infringing use of the mark.
See Mishawaka,
Nevertheless, the other relevant factors here still support the district court’s denial of an accounting of profits. There were nо diverted sales nor palming off in this case, which are both significant factors.
See Texas Pig Stands,
b. attorneys’fees
Under the Lanham Act, a court may award reasonable attorneys’ fees to the prevailing party in “exceptional cases.” 15
U.S.C. §
1117(a). “An exceptional case is one where the violative acts can be characterized as malicious, fraudulent, deliberate, or willful.”
Seven-Up Co. v. Coca-Cola Co.,
An award of attorneys’ fees under § 1117(a) generally “requirefs] a showing of a high degree of culpability on the part of the infringer, for example, bad faith or fraud.”
Texas Pig Stands,
Relying upon (1) Tour 18’s lack of intent to divert sales, (2) the lack of evidence of actual damages, (3) Tour 18’s good-faith belief that it could copy the Plaintiffs’ golf holes and use their marks to identify the golf holes it copied without causing confusion, and (4) the closeness of the case and the mixed results achieved by both sides, the distinct court found that this case was not an exceptional case allowing for an award of attorneys’ fees.
See Pebble Beach,
While a prevailing party’s mixed results can be handled by apportioning the attorneys’ fees among the claims,
see
5 MCCARTHY on TRADEMARKS,
supra,
§ 30:103, the district court considered the mixed results as a makeweight indicating (1) that Tour 18’s conduct was not so egregious that it had no defense and (2) that it had not taken an unreasonable position.
See Pebble Beach,
As to the other circumstances of the case, the district court did not clearly err in finding a lack of the requisite level of culpability because there was no intent on Tour 18’s part to divert sales, there were no actual damages proven, there was no lack of good faith (as evidenced by Tour 18’s use of disclaimers, though inadequate), and there were available legitimate uses of the Plaintiffs’ marks to identify the Plaintiffs’ products.
See Roulo,
III. CONCLUSION
For the foregoing reasons, we AFFIRM the district court’s judgment as modifiеd. Each party shall bear its own costs on appeal.
Notes
. For a more extensive recitation of the facts, see the district court’s opinion.
Pebble Beach Co. v. Tour 18 I, Ltd.,
. Pebble Beach and Pinehurst presented evidence that approximately five percent of their customers are Texas residents.
. "A golf course uses a 'signature' hole as a 'trademark' hole to advertise its course. Usually a signature hole has a unique design or beauty that sets the hole apart from the rest of the
course
and makes the hole memorable.”
Pebble Beach,
. Where the owner of a registered service mark uses the mark in connection with the services specified for five continuous years after the registration date, the mark is deemed “incontestable.”
See
15 U.S.C. § 1065. Once a mark is incontestable, its registration constitutes conclusive evidence of the registrant's right to exclusive use of the mark in commerce for the services specified, subject only to the seven defenses enumerated in 15 U.S.C. § 1115(b).
See Soweco, Inc. v. Shell Oil Co.,
. See footnote 4, supra, for the procedural effect of registration upon a mark’s protectibility.
. Tour 18 also argues that the district court failed to consider the aesthetic functionality of a golf hole. This circuit has rejected the doctrine of aesthetic functionality.
See Sno-Wizard Mfg., Inc. v. Eisemann Prods. Co.,
. The Plaintiffs argue that their golf-hole designs are unique and therefore inherently distinctive, urging us to equate uniqueness with inherent distinctiveness. However, something that is inherently distinctive is unique, but the converse is not necessarily true. A product may be unique and yet fail to be sufficiently distinctive to indicate source. See 1 McCarthy on Trademarks, supra, § 8:13, at 8-35 to 8-36 ("A product or package feature is not inherently distinctive merely because there is no other product on the market that looks exactly the same."). If uniqueness were the test, then
[plresumably, it could be said about the trade dress of any new product that no competitive product combines precisely the same elements in its trade dress.... [Such a test] essentially would require a finding of inherent distinctiveness whenever a new product enters the market.
Turtle Wax, Inc. v. First Brands Corp.,
. The district court found that the inclusion of the lighthouse made such a significant difference that Sea Pines’s golf-hole design is inherently distinctive and thus by definition not generic.
See Pebble Beach,
. Tour 18 also argues that it presented survey evidence indicating that the Plaintiffs’ golf-hole designs had not acquired secondary meaning in the minds of consumers. Through the testimony of an expert, Tour 18 presented a survey of the public’s reactions to pictures of the Plaintiffs' golf holes. The survey was entitled "An Investigation of the ‘Inherent Distinctiveness' оf Selected Golf Holes.” During its expert's testimony about the survey, Tour 18's counsel asked if the expert had an opinion as to whether Pebble Beach or Pinehurst’s golf-hole designs had acquired secondary meaning. Tour 18's counsel did not ask the same question about Sea Pines's golf-hole design.
This omission implies either that the survey was not probative in relation to whether Sea Pines's golf-hole design had acquired secondary meaning or that the survey would have supported a finding of secondary meaning, an inference not in Tour 18's interests. Tour 18 chose not to present the survey as probative of whether Sea Pines's trade dress had acquired secondary meaning as evidenced by the omitted question and by its failure to argue no secondary meaning for the Sea Pines's golf-hole design in its closing argument, and we therefore do not find error in the district court’s failure to factor in the survey as to this issue. Additionally, the survey showed that nine percent of active golfers surveyed identified Sea Pines's golf hole in a way indicating source — e.g., "legendary light house hole,” "a golf course in Hilton Head, S.C.,” and "18th hole harbor [sic] town." While this may not be enough to establish secondary meaning on its own,
see, e.g., Roselux Chem. Co. v. Parsons Ammonia Co., 49
C.C.P.A. 931,
. We have held in the text that the district court did not err in relying upon the Plaintiffs' survey asking whether permission was obtained. However, we note that "approval” is a word with an easily understood everyday meaning that could have been used just as easily in the survey or in questions asked of the witnesses. We do not hold here that the unfettered use of "permission,” rather than “apprоval” or other less ambiguous language, is always acceptable, and we caution litigants to consider the language of the survey and questions so that the consumer's belief that permission is required does not skew the results of the survey, thus decreasing its probative value.
See Exxon Corp. v. Texas Motor Exch. of Houston, Inc.,
. In its reply brief, Tour 18 challenges other aspects of the district court's findings, including its consideration of the intent factor in the likelihood-of-confusion analysis and its partial reliance upon the likelihood-of-confusion analysis of the use of the Plaintiffs’ marks in its analysis of the use of Sea Pines’ trade dress. Because Tour 18 failed to raise these arguments in its initial brief on appeal, we will not consider them.
See Cinel v. Connick,
. The fair-use defense allows a party to use its own name or a descriptive term or device in the name or term’s descriptive sense to describe its own goods or services.
See
15 U.S.C. § 1115(b)(4). Use of the term or name as a mark defeats the defense.
See id.;
Restatement,
supra,
§ 28 cmt. a. The fair-use defense is limited "to use of the original descriptive or personal name significance of a term.”
See id.
§ 28 & cmt. a;
see also
15 U.S.C. § 1115(b)(4);
Soweco,
.
New Kids on the Block
also held that "the product or service in question must be one not readily identifiable without use of the trademark.”
. We do not prescribe any particular method for this consideration because this case does not present a situation in which nominative use is a significant factor in the liability determination.
. Because we affirm the district court’s finding of infringement, we likewise affirm its state-law unfair-competition claim.
See Elvis Presley Enters.,
Additionally, Tour 18 and the Plaintiffs' challenges to the district court’s findings on dilution have no merit. Dilution can be shown by way of two different theories: blurring and tarnishment.
See
3 McCarthy on Trademarks,
supra,
§ 24:67-:69;
see also
Restatement,
supra,
§ 25 (referring to the theories respectively as "dilution” and "tarnishment”). The district court found that Tour 18 had diluted the Plaintiffs’ marks under a theory of blurring, but that it had not diluted their marks under a theory of tarnishment.
See Pebble Beach,
The Plaintiffs' challenge to the district court's finding of no dilution by tarnishment rests upon the argument that Tour 18’s replicas are not as difficult or as beautiful as the original golf holes and that Tour 18's claim that its golf holes are replicas tarnishes their images. The Plaintiffs’ brief argument, buried in their challenge to the injunction, is that this type of аssociation supports a finding of tarnishment. The district court recognized that this association may support a claim of dilution by tarnishment but found that such dilution does not exist in this case because any shortcomings would be attributed to Tour 18 and not to the Plaintiffs.
See Pebble Beach,
. In
Vomado,
the court found that a feature was both patentable and nonfunctional.
See
. Tour 18 contends that this court's decision in
North Shore Laboratories Corp. v. Cohen,
North Shore
Laboratories's alternative holding that a product's color cannot be protected by federal trademark law has been overruled by subsequent Supreme Court authority.
See Qualitex,
. Whether an injunction is mandatory under the Texas anti-dilution statute is not before us because an injunction has been entered which, as discussed infra, does not permit diluting conduct.
. The complete text of the district court’s amended injunctive order follows:
(1) Defendant and all persons in active concert or participation with defendant are permanently enjoined from using in connection with the promotion, advertising, or sale of golfing services, the service marks "HARBOUR TOWN,” "HARBOUR TOWN GOLF LINKS," or any depiction or photo of the Harbour Town lighthouse.
(2) Defendant and all persons in active concert or participation with defendant are permanently enjoined from offering in connection with defendant's golf course services a replica, copy, оr imitation of the Harbour Town lighthouse. Tour 18 is ordered to remove its replicas of the Harbour Town lighthouse from all Tour 18 golf courses. However, Tour 18 is not required to alter the playable surface of the golf holes in question.
(3) Defendant and all persons in active concert or participation with defendant are permanently enjoined from using in connection with the promotion, advertising, or sale of golfing services, the service marks "PEBBLE BEACH," “PEBBLE BEACH GOLF LINKS," "PINEHURST,” or "PINEHURST No. 2,” except that defendant may use these marks only to the limited- extent necessaiy to inform the public which golf holes it copied. To comply with this section of the injunction. Tour 18 may use plaintiffs’ marks on its scorecard, yardage guide, and tee box signs. Additionally, Tour 18 may place these service marks in other printed materials only within a simple legend of the course's replicated golf holes. This legend shall include only the Tour 18 hole number, name of replicated hole, par, and yardage, similar to the legend contained within Tour_18’s current promotional brochure, specifically plaintiff’s exhibit 103. Tour 18 must remove all other superfluous uses of the marks listed in this section from its written materials, including but not limited to, the Tour 18 promotional brochures, mailers, advertisements in independent publications, and restaurant menu.
(4) Defendant shall place a disclaimer prominently and in bold lettering on the front of all advertisements, promotional brochures, scorecards, yardage guides, or other written materials provided to the public as a means of marketing Tour 18. The disclaimer shall disclaim any association, affiliation, sponsorship, or permission from the owners of the golf holes Tour 18 copied. Tour 18 shall maintain use of the disclaimers that currently appear on its tee box signs.
(5) Defendant is enjoined from using any advertisement or promotional statement claiming it used“original" blueprints, maps, or other data to construct its replica golf holes, except that defendant may use such a statement if it also includes a disclaimer clearly stating that it neither received the blueprints or maps from the owners of the original golf holes or that the owners of the original golf holes authorized Tour 18-'s use of such blueprints or maps.
(6) Defendant shall have thirty days from the entry of final judgment to comply with the provisions of this injunction.
(7) All additional relief requested by plaintiffs and defendant not specifically granted herein is denied.
Pebble Beach,
. Tour 18 also argues that the term '‘superfluous” in paragraph (3) is vague, but by our reading of the paragraph and "superfluous” in context, we find a clear meaning. The district court’s requirement that all superfluous uses of the Plaintiffs’ marks must be removed means that uses not expressly allowed are enjoined.
. Our belief that the limitation is minimal is supported by the fact that Tour 18 challenged only the complete prohibition of its use of Sea Pines’s marks and not the limitation on its use of Pebble Beach or Pinehurst's marks in its motion to the district court to alter or amend the final judgment. Additionally, its argument to this court that the injunction is too broad is brief and cursory.
. The Plaintiffs also argue that Pebble Beach and Pinehurst must be granted an award of treble profits and attorneys’ fees, pursuant to 15 U.S.C. § 1117(b). However, § 1117(b), which provides penalties for the intentional use of counterfeit marks, does not apply to this case because (1) this simply is not a counterfeiting case and (2) despite the fact that Tour 18 intentionally copied the Plaintiffs' marks and trade dress, it did not intentionally infringe the Plaintiffs' marks by the use of counterfeit marks in attempting to use them to identify the golf holes it copied. The case upon which the Plaintiffs rely does not stand for the proposition that any § 1114(l)(a) violation triggers the remedies in § 1117(b). That case is a clear case of intentional counterfeiting.
See Dunkin' Donuts Inc. v. Mercantile Ventures,
