Mary Cesar thought nothing of selling University of Alabama-decorated pastries for years, including to the university's athletics department, law school and president's office. She never considered that $1.75 cookies with the "A" script would cause a problem.

But in August 2012, Mary's Cakes & Pastries in Northport received a cease-and-desist letter from Collegiate Licensing Company, which licenses Alabama's lucrative merchandise. CLC ordered the bakery to stop selling the pastries due to the use of Alabama trademarks and wanted documentation of how many had been sold so damages could be collected.

"How the hell do you put a hologram on a cookie?" Cesar said, referring to the label on CLC merchandise signifying it's an officially-licensed product. "I didn't think it applied to temporary baked goods. We're not talking a permanent image. We're talking a cookie that's going to be gone and has a hand-drawn thing on it."

As the Crimson Tide tries to again defend its national championship in football, no university may defend its trademarks and logos more vigorously than Alabama.

The aggressiveness raises questions of what products are fair game to enforce. And in some of its legal fights, Alabama is losing as financial costs add up.

Alabama athletics director Bill Battle watches over football practice from outside his office Monday, Aug. 5, 2013, at the Thomas-Drew Practice Facility in Tuscaloosa, Ala. (Vasha Hunt/vhunt@al.com)

In a written statement, Alabama Athletics Director Bill Battle said defending the university's trademark licensing program "takes relentless effort and, often times money, to do so. Nothing in that effort is done frivolously. When our trademarks are challenged, we either defend them or risk losing them. It's that simple.

"We have students, alumni and fans in every state in the United States and more than 70 countries throughout the world. That means that the Alabama brand has a presence in all of those areas. As the exposure grows, the opportunities for mischief grow and so does the need to ensure that our brand, our name, and our trademarks are used appropriately and in keeping with our values."

Alabama said it has spent approximately $1.486 million in its 8-year-old trademark lawsuit against artist Daniel Moore that was dismissed by a federal judge in September. In actuality, the pursuit against Moore has cost about $3 million since CLC split the legal fees with Alabama, said Stephen Heninger, Moore's attorney.

Alabama unsuccessfully argued that Moore needed permission to depict the team's uniforms because they are trademarks. Now Moore is seeking to be awarded attorney's fees -- an amount Heninger places at about $290,000. In a court motion, Heninger writes that there was "substantial evidence of bad faith or improper motive in bringing and prosecuting this lengthy and expensive suit."

Alabama opposes the attorney's fees and says Moore's company, New Life, is only entitled to separate court costs in the amount of $15,197. The university argues in a motion that "the evidence demonstrates that the University's claims were legitimate and colorable when filed, and the University conducted this litigation in good faith."

Meanwhile, Alabama said it has spent $168,771 in legal fees against Houndstooth Mafia to prevent a trademark application. The university and Paul Bryant Jr., the son of legendary coach Paul "Bear" Bryant, are suing to overturn a ruling by the U.S. Patent and Trademark Office Trademark Trial and Appeal Board allowing the Houndstooth Mafia's 2007 trademark registration application to go forward for caps and T-shirts.

Alabama spokeswoman Deborah Lane said funding for the legal cases came from the university's athletics department, which is self-sufficient, and no state funds, tuition dollars or university funds have been used.

A Houndstooth Mafia shirt is shown. The University of Alabama lost a federal trademark appeals court case involving this logo by two Alabama fans who want to sell clothing with that logo. But the University has filed a federal lawsuit against Houndstooth Mafia as an appeal to block it. The case is still pending.

Jerry Watts, the attorney for Houndstooth Mafia, said the suit against his clients makes him question whether Alabama's funds are focused on education or self-promotion.

"We're a little bit surprised they would continue the fight," Watts said. "I can see why the university would want to have rights in the (houndstooth) pattern but history dictates otherwise. ... We feel like we're in a David and Goliath affair."

Alabama owns 'Alabama'

The list of distinctive marks claimed by Alabama lasts two pages. The university has the rights, titles and interest in 36 indicia -- trademarks, service marks, trade names, designs, logos, seals and symbols.

There are primary marks, secondary marks, helmet marks, words marks, traditional marks, youth marks and even verbiage. Alabama owns the words/phrases "Roll Tide," "Crimson Tide," "U of A," "Bama," "Rammer Jammer," the "University of Alabama" and "Alabama."

That's right: the University of Alabama owns "Alabama."

"I do understand you need to vigorously defend your trademark if you want to keep your trademark," said Cesar, the baker. "I don't know how you can own the word 'Alabama.' (University officials) told me it's as it relates to football. So can I put Alabama on a cookie as long as it relates to the state but not football?"

Alabama has generated $34.3 million in gross royalty revenue since the first of Nick Saban's three national championships with the Crimson Tide, according to the university.

Back in 2006, Alabama's athletics department reported to the NCAA $1.2 million in revenue from royalties, licensing, advertisements and sponsorships. That same category yielded $10 million in Alabama's 2012 NCAA financial report.

Alabama was CLC's No. 7 seller in university merchandise in 2006-07, which was the last season under former coach Mike Shula. By last year, Alabama had shot up to No. 2 on the list behind only Texas.

Collegiate Licensing Company Top-Selling Merchandise by universities

2006-07 2012-13 1. Texas 1. Texas 2. Notre Dame 2. Alabama 3. Florida 3. Notre Dame 4. Michigan 4. Michigan 5. Georgia 5. Kentucky 6. North Carolina 6. LSU 7. Alabama 7. Florida 8. Oklahoma 8. Georgia 9. Tennessee 9. North Carolina 10. Penn State 10. Arkansas 11. LSU 11. Oklahoma 12. Florida State 12. Texas A&M 13. Auburn 13. Wisconsin 14. Nebraska 14. Nebraska 15. Wisconsin 15. Tennessee 16. Kentucky 16. South Carolina 17. Illinois 17. West Virginia 18. Arkansas 18. Auburn 19. Miami 19. Penn State 20. Clemson 20. Missouri

Note: CLC represents 152 universities, including most, but not all, prominent athletics programs. For instance, Ohio State is not represented by CLC.

Alabama said it has issued 153 cease-and-desist letters in the past 10 years regarding trademark applications and filed 25 extensions to oppose a pending trademark application. In some cases, the company or person applying for the trademark fought the university, such as the case with Houndstooth Mafia. In other cases, a person or company stopped pursuing a trademark.

Many universities fight to defend their trademark. Alabama isn't alone in this practice, especially among universities that license through CLC, said Heninger, a trademark attorney.

For instance, Auburn sued a man in 2008 who sold a foamed hand commemorating Auburn's six straight Iron Bowl wins. The product included registered trademarks "Auburn" and "War Eagle." The man sold 14 foam hands and testified he wanted to make "enough money to pay the cost and buy some beer."

Auburn is currently opposing applications from C.O. Branded Corporation for attempting to register "Southern Tiger" and a corresponding logo for apparel. Auburn also filed an extension of time to oppose the phrases "In Gus We Trust" and "Gus Bus" -- a play off current Auburn coach Gus Malzahn.

Malzahn isn't the only coach having his name defended. Nick Saban, through his sports agent, filed an extension of time in 2012 to oppose a Colorado company from registering the term "Sabanized" on hats and T-shirts. The company abandoned the application before it was registered.

Alabama's 'history of aggressive assertion of trademarks'

In the case of Alabama, the university has "developed a history of aggressive assertion of trademarks," Duquesne University assistant law professor Jacob H. Rooksby wrote in a recent University of Houston Law Center research paper on trademarks in college sports.

Alabama's athletics director is now Battle, who in 1981 founded CLC, the largest licensing arm in college sports. Finus Gaston, Alabama's longtime senior associate athletics director, is widely credited for sparking study of the licensing movement in the 1980s.

For his doctoral dissertation in 1984, Gaston surveyed other university administrators and found that unlike patenting, which universities largely manage through institutional offices of technology transfer, trademark activities were found in many places at universities. Among them at the time: financial affairs (41.9 percent), athletic departments (16.3 percent) and offices of the president (11.6 percent).

Today, Alabama's licensing division is under the athletics department's umbrella. Battle and Gaston declined to be interviewed for this article.

In his study of university trademarks, Rooksby wrote that colleges are moving beyond seeking trademarks to protect institutional identity and revenue generation. Instead, Rooksby wrote, some universities want trademarks to squelch "innocuous and unrelated speech of virtually no potential to confuse anyone," and used Alabama's incident with Mary's Cakes and Pastries as an example.

After the bakery story became public last year, Alabama quickly apologized publicly and to Cesar. She agreed to pay a $10 licensing fee. According to Cesar, the publicity resulted in Alabama starting a licensing program for small crafters that grants them the right to use Alabama trademarks for one year on 500 products or $2,500 in revenue.

Cesar said she considered challenging Alabama but turned down free legal service by Heninger, Moore's attorney in the fight over paintings.

"If you look at the way the public might have looked at this, it was David and Goliath as long as it looked like the university was a big, mean guy," Cesar said. "If it looked like I'm fighting it with free representation, all the university has to say is we offered a $10 license and they chose to fight it. It's one of those things where doing the right thing and the practical thing may not be the same."

Cesar said Alabama has never cashed her $10 check.

"It's the only outstanding check I have in my cashbook," she said. "Go figure. I'm sure it was an oversight."

'Common sense is the boundary'

Compliance officers for the university and its licensing groups are constantly searching for unlicensed Alabama products, particularly on game days. That's not to say some enforcement efforts lack justification.

Last month, Alabama joined a federal counterfeiting lawsuit in Illinois with the University of Oklahoma, NBA Properties, MLB Advanced Media, Major League Baseball Properties, NHL Enterprises and CLC. They claim the defendants -- whose names are sealed -- operate online stores bearing counterfeit versions of their trademarks.

According to the lawsuit, the defendants are individuals and business entities who live in China or other foreign jurisdictions. The suit alleges the defendants create online stores "by the thousands" and design them to appear to be selling licensed products when in fact they're selling low-quality, unlicensed merchandise.

The defendants accept payment by Western Union, credit card and PayPal and ship counterfeit products to U.S. consumers in small quantities to minimize U.S. Customs and Border Protection, according to the suit. To fool customers, the suit says, the defendants use trademarks such as McAfee Security and VeriSign to suggest authenticity.

Trademark holders absolutely have a right to defend their mark if they produce goods that are being competed against illegally, Heninger said.

"I think common sense is the boundary," he said. "You don't have to be pursuing people that aren't really in competition with you. Alabama takes the position that if the 'A' is on anything, they're going to stop you no matter what."

In one case, Heninger said a Christian non-profit group sold T-shirts that used the word "Bama" in the biblical context and added "Roll Tide" -- a registered trademark by Alabama.

"It was just a witness to Christianity, they sold a few hundred of them, and Alabama got wind and ordered them to destroy them," Heninger said. "I told the group, 'If I were you, I'd fight it.' They said they weren't sure if the Lord would want that and they burned the inventory and went out of business."

In a different case, Alabama is currently opposing one man's design of "RTR" -- Roll Tide Roll -- formed by an elephant. The man declined comment.

Remon clothing company has a trademark pending on this elephant. the University of Alabama has until Nov. 20 to oppose and had gotten an extension.

Birmingham clothier Remon's Inc. filed an application in January for a trademark on an elephant to be put on articles of clothing. In August, the trademark office granted Alabama's request to extend until Nov. 20 its time to oppose Remon's trademark.

An official with Remon's declined to comment. Efforts to reach the store's trademark attorney were unsuccessful.

Eight years ago, former Tuscaloosa coffee shop owner Mark Elmore created the Bama Bean coffee shop based on a logo that Alabama didn't approve. The logo -- a coffee bean wearing a houndstooth hat leaning against a goalpost, ala Bear Bryant -- was on his signs, merchandise, and labels for different varieties of coffee.

Over a year after he opened the shop, Elmore said he received an intimidating letter from Gaston, Alabama's senior associate athletics director. "It didn't take long for me to decide we couldn't fight these guys," Elmore said.

Elmore never had to make the decision on whether to pay Alabama royalties. He said he sold the shop in 2007 largely because his daughter, who was running the store, moved out of state.

Although Elmore believes Alabama acted heavy-handed toward him, he said he holds no grudges.

"You won't find a bigger Alabama fan than me."

AL.com staff writer Kent Faulk contributed to this article.