In an unanimous decision, the Supreme Court affirmed the Federal Circuit's en banc ruling. The Court rejected the government's argument that trademark registration is not subject to First Amendment scrutiny as it is government speech rather than private speech. The Court noted that there are more than 2million trademarks and these marks do not convey any government message. The Court also rejected the argument that trademark registration is a government subsidy noting that no payments are made to applicants while subsidies involve cash payments or equivalents. Finally, the Court rejected the argument that trademarks are commercial speech noting that the disparagement clause cannot withstand the relaxed scrutiny under Central Hudson as it neither serves a substantial interest nor is it narrowly drawn.
Full text of the opinion is available here.