[GirlySports]

that's just bad reporting.

The "trademark" wasn't denied. What was denied was registration on the federal trademark registry. Being on the registry gives you certain additional protections against subsequent users, and extra damages available against counterfeiters, but it really doesn't have anything to do with whether one can either use a trademark or sue others to enforce it. The laws still recognize common law trademark rights, and those rights are about 90% as good as rights associated with a registered mark.