Which of the following statements is true regarding the FTDA?

The correct understanding of the Federal Trademark Dilution Act (FTDA) is that it specifically protects only famous trademarks from dilution. The FTDA was enacted to provide legal recourse for owners of famous marks against uses that would diminish the uniqueness or reputation of their brand, even in the absence of consumer confusion.

By focusing on famous marks, the FTDA recognizes the broader impact that dilution can have on a brand's value and market presence. It is important to note that the act does not extend its protections to less well-known trademarks or those held by smaller family-owned businesses unless those marks have achieved a level of fame that qualifies for protection under the act.

In summary, the FTDA aims to protect famous trademarks from dilution, suggesting that only these marks can invoke the protections of the FTDA, making the assertion that only famous marks can use the FTDA accurate.