Casa Tradicion, which makes and distributes tequila under the brand name CLASE AZUL, brought a trademark infringement action against Casa Azul’s use and registration of the mark CASA AZUL for its own brand of tequila. Having earlier denied Casa Tradicion’s motion for a preliminary injunction, the district court remained unconvinced after a bench trial that consumers were likely to be confused, and denied Casa Tradicion’s request for a permanent injunction and cancellation of the CASA AZUL trademark registration.