Reverse confusion. Bullying. Potentially large damages. Bad faith. The dispute brewing over the PAPER trademark invokes all the relatively rare theories that trademark lawyers love to obsess over. The big question: Who will win and why?

In one corner is Facebook, which just announced its much anticipated news-reader application, PAPER. Facebook's new app uses a Flipboard-like interface for viewing content, including articles from well-known publications, in the user's Facebook timeline.

In another corner is a small application developer, FiftyThree Inc., creator of the PAPER sketching application. FiftyThree's app allows users to sketch, draw and create designs on an iPad. It's been a popular iPad title and has even won an Apple Design Award in 2012. It is listed as a must-have app in the New to the App Store section, and was named App of the Year, too. Paper has also been honored with awards from AIGA, IxDA, Communication Arts and Time.