A lot of trademark disputes do not end this easily. Okoboji (Iowa) High School uses the University of Oregon's trademark "O" for its school's athletic teams. The university wanted the high school to change its logo, in order to protect the distinctiveness of the trademark. Okoboji has agreed to comply.
There are schools that use university trademarks, but they pay a licensing fee in order to use the mark. Evidently, there was no licensing fee here, or Oregon changed its mind.
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