Soho coffee shop Everyman Espresso is in hot water with New York State for violating federal trademark law with their "confusingly similar" I [coffee cup] NY logo. The Times reports that the state's Department of Economic Development sent letters to the acclaimed coffee shop ordering them to stop their riff on the iconic I ♥ NY® design.
The logo, which had not only been emblazoned across the exterior windows, also showed up in the shop's merchandise, none of which can now be sold. Unfortunately, simply removing the logo wasn't enough for the state, who demanded the pair also supply “an accounting of all gross revenues generated during the period when the I ♥ NY® Trademark was used” so the state's lawyer can set the "appropriate penalty."
The state has been cracking down on unlicensed use of the logo for years, and even went so far as to sue co-creator Milton Glaser for trademark infringement after he reworked his iconic design post-September 11th. The coffee shop's Twitter feed is filled with support from fans, with some even offering money to setup a logo legal defense fund. If all else fails, they should just claim they're submitting their I ♥ NY® logo redesign a little late.