In a 7-to-2 decision, the court gave a narrow reading to a statute that made it a crime to encourage unauthorized immigrants to come to or stay in the United States.
The justices rejected the government’s interpretation of a 2004 law that adds two years in prison for certain felonies if they involved misusing another person’s identification.
The case, a trademark dispute, pitted Jack Daniel’s against Bad Spaniels Silly Squeakers, which looks like the distiller’s distinctive bottle and adds potty humor.