Where an alleged trademark infringer incorporates with distortion the characteristics of the original product that indicate its origin and source, the enhanced First Amendment protections for parodies are properly not considered in the preliminary injunction analysis under the statute.
Given the strength of the original marks, the intention to evoke the original marks by using the distorted design established a likelihood of confusion, especially since the original brand occasionally sold special forms of the shoe. Although it might be difficult to actually wear the shoe, enjoining court's determination to the contrary worthy of deference. No clear error in determination that the alleged infringement was of lower quality, but the court erred in holding that legally this worked in the favor of the party claiming infringement.
No abuse of discretion in ordering escrow of gross revenues, as party seeking injunction sought an accounting, and a damages award would include costs and fees. No error in not requiring bond from party seeking injunction, as non-movant didn't request it.