however, if you where to own a company called microsoft pillows that produced Micro Small Pillows for Hamsters then there would be no current statute for microsoft to claim Trademark infringement against the said company.
Not exactly correct. Repeated principle
#34 - "Not all trademarks are as strong as other trademarks."
Some trademarks are weak. Some trademarks are strong, but narrow. But some trademarks fall into a special category beyond strong, and are "famous". A famous trademark is so strong, that even its use on non-competing goods and services would dilute the distinctive character of the mark to the extent that consumers might associate the non-competing goods with the source of the trademarked goods.
For example, if you sold "Delta" brand tampons, then you probably wouldn't generate consumer association with either the airline, or the faucet company. One reason for that is because "Delta" is used by different companies for different things already - i.e. airlines and faucets - so consumers know that "Delta" isn't necessarily the same company in different contexts. "Champion" is a spark plug, clothing, a mortgage company, and about six other things.
But if you sold "Coca-Cola" brand tampons, then the ensuing litigation will bleed you to death. "Coca-Cola" is so strong and so well known, that putting it on just about anything would call to mind what is perhaps the world's most recognizeable trademark. It is indisputably famous.
Fame is not entirely subjective. There is a laundry list of factors that a court will consider in determining whether a mark is famous. However, to cut to the chase here, I don't have a shred of doubt that Microsoft would pass the test.
The US statute here is section 43(c) of the Lanham Act, otherwise known as the Federal Non-Dilution Act. It is codified at 15 U.S.C. 1125(c):
(c) Remedies for dilution of famous marks
(1) The owner of a famous mark shall be entitled, subject to the principles of equity and upon such terms as the court deems reasonable, to an injunction against another person's commercial use in commerce of a mark or trade name, if such use begins after the mark has become famous and causes dilution of the distinctive quality of the mark, and to obtain such other relief as is provided in this subsection. In determining whether a mark is distinctive and famous, a court may consider factors such as, but not limited to -
(A) the degree of inherent or acquired distinctiveness of the mark;
(B) the duration and extent of use of the mark in connection with the goods or services with which the mark is used;
(C) the duration and extent of advertising and publicity of the mark;
(D) the geographical extent of the trading area in which the mark is used;
(E) the channels of trade for the goods or services with which the mark is used;
(F) the degree of recognition of the mark in the trading areas and channels of trade used by the marks' owner and the person against whom the injunction is sought;
(G) the nature and extent of use of the same or similar marks by third parties; and
(H) whether the mark was registered under the Act of March 3, 1881, or the Act of February 20, 1905, or on the principal register.
