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No, they argue that the book is obviously intended to appear very, very similar to Palin's book, and that it causes market confusion because you do have to look very, very carefully to make sure you're getting the right one. That's the heart of trademark.
I don't know. I mean if you buy a replica of the Mona Lisa because it looks similar to the real image and argue that you thought you were buying the real thing at $64 at a Target no judge will take you seriously. It's up to the customer to check the merchandise and if he/she doesn't think he's got the right product they can always return it.