In the 1928 case of Ancient Egyptian Arabic Order of Nobles of the Mystic Shrine et al. v. Michaux et al., a dispute arose between two factions within an organization known as the Ancient Egyptian Arabic Order, Nobles Mystic Shrine (AEAONMS), which was originally established for African-American Freemasons. The disagreement centered around who had legitimate control over AEAONMS's name and emblem usage rights after one faction incorporated under Virginia law without consent from other members or leaders in different states. The U.S Supreme Court ruled that despite their incorporation, this group did not have exclusive rights to use the order's name and emblems because they were already being used by various unincorporated bodies across multiple states before their incorporation took place. Therefore, it was held that incorporating in one state does not grant nationwide ownership over these symbols if they are already widely recognized as representing a particular organization elsewhere.

In the dissenting opinion for ANCIENT EGYPTIAN ARABIC ORDER OF NOBLES OF THE MYSTIC SHRINE et al. v. MICHAUX et al., Justice Stone argued that the majority's decision to deny Michaux and his group their right to use certain names, titles, emblems, etc., associated with the Ancient Egyptian Arabic Order of Nobles of the Mystic Shrine was incorrect. He believed that this case should not have been decided on a federal common law basis but rather through state legislation or by Congress itself. According to him, it is not within the jurisdiction of federal courts to create new rights or obligations where none existed before under common law principles; instead they are bound by existing statutory laws and precedents set forth in previous cases. Furthermore, he stated that there were no clear legal grounds for granting an exclusive right over these symbols as they do not fall under any recognized category such as trademarks or copyrights.