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The issue in the Iancu vs. Brunetti case revolves around the denial of trademark registration based on the argument that the mark was "scandalous" or "immoral." The U.S. Patent and Trademark Office (PTO) rejected Brunetti's application for a trademark because it was deemed to be vulgar and offensive. This case raised significant questions about the limits of free speech under the First Amendment and the government’s ability to impose restrictions on trademarks based on their perceived content. The Supreme Court ultimately ruled that the prohibition of registering scandalous marks was unconstitutional, reinforcing the idea that opinions on what constitutes immorality or scandalousness can vary widely and that the government should not have the authority to bar certain expressions from trademark protections. This ruling underscored the importance of protecting freedom of speech and the need for clear guidelines in trademark law.