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Originally Posted by teh603
There's also a Hobbit Cafe in Houston, formerly known as the Hobbit Hole when it had less parking. They've been in business for at least thirty years, and there'd be a real outcry if that one were to get sued.
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If it's just the name, then they're not really trying to trade on someone else's IP and wouldn't afaik have anything to worry about. However, in this case, I think it's more down to the following:
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It features characters from Tolkien's stories on its signs, has "Frodo" and "Gandalf" cocktails on the menu, and the face of Lord of the Rings film star Elijah Wood on its loyalty card.
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all of which are trademarked (afaik). That said, it sounds like the company involved isn't playing the big bully and are willing to resolve the issue
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When it's an established business, we like to get the company to acknowledge they are using our trademarks, stop selling infringing articles and then we will grant them a licence for a nominal fee - approximately $100 a year.
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If the pub is offered something like that to allow them to keep using the theme then they'd be a little silly to turn it down. They are after all trying to use the success of Tolkien's books to further their own business.
Source:
http://www.bbc.co.uk/news/uk-england-hampshire-17390623
What they say about defend it or lose it in regards to trademarks is perfectly true as well. Can't really blame a company for having to do what laws require them to do in order to retain their trademarks.
*Usual IANAL disclaimer applies