Good job WSJ for mentioning the tarnishment angle to this case! While diners at Carnegie Diner might not be confused about whether there's sponsorship by Carnegie Hall - a bad dining experience at the Diner could impact the Hall's reputation. A good reminder that rights holders should take action against potentially tarnishing uses of their names before the negative Yelp reviews start pouring in.
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Carnegie Hall takes action against Carnegie Diner

Being associated with the diner’s food could also tarnish Carnegie Hall’s prestigious brand, the lawyers said. “Food was not good. Carnegie in name only. Skip this place,”