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Brand owners and people who have popularized their likeness have a strong interest in protecting their name from being drug through the mud. If a brand is allowed to be drug through the mud, be it by the brand owner itself or someone who the brand owner has allowed to use the trademark, the trademark may become so weak and unable to identify the original source that it is deemed to be lost. When this happens, all the goodwill that a brand owner has developed over the years and all the millions of dollars that went into building the brand are forfeited to the dreaded pit of abandoned trademarks.
This concept (deemed as the “related company” rule) permits trademark owners to license their trademark to others. Trademark owners are free to license use of their trademarks to anyone, but the trademark owner must ensure that the goods or services put on the market by the licensed user meet the trademark owners’ quality standards. If the licensed user misuses the trademark or puts it on shoddy goods that do not rise to the standard of the trademark owner, the reputation of the trademark is harmed and the brand can no longer be taken as an indication of source to consumers. Imagine if Tiffany’s licensed its trademark to a jeweler that was using the famous blue box and elegant TIFFANY name for jewelry made with stainless steel and cubic zirconia. Clearly, such jewelry doesn’t rise to the high standards Tiffany’s places on its jewelry and over time (if the licensed user had substantial sales), consumers would no longer be able to trust that the TIFFANY name is synonymous with quality.
Similar considerations exist here. By allowing the casinos to continue operation in a substandard state not characteristic of the TRUMP name, Donald Trump would be damaging the value of the brand. Consumers could no longer rely on TRUMP as an assurance of consistency in quality of the services being offered. So the Donald has to come in and crack the whip or else he loses his mark completely.
Besides, mud is awfully damaging to nice, Italian wool suits.