Did Intelsys act ethically in this case?

Ethics Case

Intel Corporation is a large company that distributes its entire line of products and services under the registered trade mark and service mark INTEL.
The company also owns numerous marks that incorporate its INTEL marks as a permanent
component, such as the marks INTEL IN SIDE, INTEL SPEEDSTEP, INTEL XEON, and INTEL
NETMERGE. Intelsys Software, LLC, which is owned by another party, develops software applications for net work utilities and wireless applications. Intelsys uses the mark Intelsys Software and maintains a website at www.intelsys.com. Intel Corporation brought an action in U.S. district court against Intelsys Software, LLC, alleging that Intelsys infringed on Intel’s trademarks and service marks, in violation of the Lanham Act. Intel filed a motion for judgment and a permanent injunction against Intelsys’s use of the mark INTEL in any of its company, product, or service names. Intel Corporation v. Intelsys Software, LLC, 2009 U.S. Dist. Lexis 14761 (United States District Court for the Northern District of California, 2009)
1. Is there trademark infringement?
2. Should a permanent injunction be issued against the defendant’s use of the name Intelsys?
3. Did Intelsys act ethically in this case?
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