A federal agency handed the Washington Redskins a loss last week in a fight over the football team's name, widely criticized as an ethnic slur. The Patent and Trademark Office canceled legal protection for the name, issued in 1937, because its trial board said U.S. law doesn't cover trademarks that "may disparage" individuals or groups. The 2-1 decision came a case filed by five Native Americans in 2006. "I hope this ruling brings us a step closer to that inevitable day when the name of the Washington football team will be changed," says Amanda Blackhorse, one of those who challenged the trademark.

Losing trademark status would jeopardize merchandise licensing fees and profits from the sale of apparel, banners, gift items and other fan souvenirs. The team also could have a tougher time combatting unauthorized products with its name and Indian head logo. "If money talks, a trademark cancellation shouts," journalist Barry Petchesky writes at deadspin.com.

Owner Daniel Snyder hopes to reverse the decision on appeal and vows he'll never change the name. "It is a symbol of everything we stand for: strength, courage, pride and respect," he said last year. Those on the other side include 50 U.S. senators – half of that chamber – who last month sent a letter asking the National Football League to order a name change. "For far too long, the NFL has been sitting on its hands doing nothing while an entire population of Americans has been denigrated," says Sen. Harry Reid, D-Nevada.

Federal ruling says: "A substantial composite of the Native American population found the term 'Redskins' to be disparaging." – June 18 decision by Trademark Trial and Appeal Board

Indian tribe says: "It's simply inappropriate, it's racist and it's vulgar. I would hope in my lifetime that we see a name change." -- Frank Cloutier, Saginaw Chippewa Indian Tribe spokesman in Mount Pleasant, Mich.

Team lawyer says: "Today's ruling will have no effect at all on the team's ownership of and right to use the Redskins name and logo. We are confident . . . that the Trademark Trial and Appeal Board's divided ruling will be overturned.” -- Bob Raskopf