Jack Daniel's absolutely has a case. They're "policing their mark" to prevent someone from devaluing it. Jack Daniel's trademark isn't just on the whiskey but also on t-shirts, hats, glasses, keychains, etc. and here is a separate entity making a product with an intentionally similar logo.
Jack Daniel's absolutely has a case. They're "policing their mark"
Where is the line drawn? I immediately thought of North Face suing South Butt for copyright infringement, and Harley-Davidson's attempt to copyright their distinctive engine sound, to ban Japanese imitations.
Both failed, because neither was an exact copy of the original, I suppose. It's the same situation here.
JMHO
I see zero elements in the dog toy that are identical to a Jack Daniels bottle. Copyright requires actually copying something. Apple vs. Microsoft settled the notion that you could copy a “look and feel” in general and infringe copyright. You cannot. You can take anything to a court...winning the case requires objective facts in evidence.