enter a permanent injunction in this case. Courts have a wide range of discretion in framing injunctions. Spring Mills, Inc. v. Ultracashmere House, Ltd., 724 F.2d 352 (2d Cir.1983). In AMF, Inc. v. Sleekcraft Boats, 599 F.2d 341 (9th Cir.1979), the defendant was allowed to continue use of its contested mark but only in connection with its own distinctive house mark or logo. In other cases, courts have determined that some form of disclaimer of association is sufficient to preclude likely confusion. See, e.g. Mushroom Makers, Inc. v. R.G. Barry Corp., 441 F.Supp. 1220 (S.D.N.Y. 1977), aff’d, 580 F.2d 44 (2d Cir.1978) (junior user must prominently display statement that it does not make shoes or that it is not associated with senior user), cert. denied, 439 U.S. 1116, 99 S.Ct. 1022, 59 L.Ed.2d 75 (1979).
In this case, however, Quality International attempted before trial to avoid confusion by the very restrictions a court might consider appropriate. The evidence demonstrated that any such restrictions would not suffice to avoid confusion. Accordingly, the injunction will without qualification prohibit Quality International from using the name “McSleep” as a mark or as part of a mark.
To give effect to the injunction, the Court will require Quality International to advise its franchises of this injunction and to require them to refrain from using the name “McSleep” as a mark or as part of a mark.
Finally, the Court will require Quality International to report to the Court within 30 days that it has complied with the injunction.
McDonald’s has asked that this Court find that the circumstances of this case are “exceptional” as that term is used in 15 U.S.C. § 1117 and therefore award it attorney’s fees. When this provision for attorney’s fees was added to the Lanham Act in 1975, Congress intended it to be applied where the acts of infringement can be characterized as unconscionable, malicious, fraudulent, deliberate or willful. S.Rep. No. 93-1400, 93rd Cong., 2d Sess. (1974), 1974 U.S.Code Cong. & Admin. News 7132, 7133 (1975); Fire Platters, Inc. v. Purdie, 419 F.Supp. 372 (D.Md.1976). Some cases have viewed this as requiring some form of fraudulent conduct of the type that is inherent in counterfeiting or “palming off.” Armstrong Cork Co. v. Armstrong Plastic Covers Co., 434 F.Supp. 860 (E.D.Mo.1977); Playboy Enterprises, Inc. v. Baccarat Clothing Co., 692 F.2d 1272 (9th Cir.1982). Others have noted that the conduct need only be deliberate and willful. Quaker State Oil Refining Co. v. Kooltone, Inc., 649 F.2d 94 (2d Cir.1981). In any case, it is an issue of discretion based on all the circumstances.
In this case no evidence was presented that McDonald’s sustained any damage. Quality International pursued this action promptly, before it opened its first McSleep Inn, to resolve the cloud over the name which it incorrectly perceived it could use. It is true that the Court concluded that Quality International’s selection of the name was a deliberate attempt to trade on the good will and reputation of McDonald’s. But Mr. Hazard, who selected the name, believed that it was defensible because of the non-competing products and services with which the marks would be used. Most importantly, however, Quality International did not at any time seek to conceal its sponsorship of McSleep Inn. Its first announcement began with the statement that Quality International was introducing the new line of hotels.
For these reasons, the Court determines that this case is not “exceptional” as that term is used in 15 U.S.C. § 1117, and it will deny the request for attorney’s fees.
A separate order will be entered consistent with this opinion.
INJUNCTION AND ORDER
For the reasons given in the Opinion issued this date, it is hereby ordered this 16th day of September, 1988, by the United States District Court for the District of Maryland, that:
1. Quality Inns International, Inc., its officers, directors, and agents are permanently prohibited and enjoined from using
