"[HSA] can make [products] cheaper, so you're not on a level playing field with the Coop and J. August," he said.

Harvard nets about $500,000 a year from these royalties, and Calixto noted that the proceeds go directly to the financial aid office. But because of Harvard's need-based financial aid system, the money does not affect the size of individual students' grants.

Calixto also noted that other student groups have requested--and been denied--the ability to sell apparel with the Harvard trademark to third parties.

Calixto said he did not buy the notion that HSA should not be held to the same standard as other apparel retailers simply because of their student group status.

"They're supposed to be teaching students what it's like in the real world. In the real world, you pay royalties," he said.

In the past year, the trademark office has become increasingly vigilant about the use of the Harvard name, even approaching student groups such as The Lampoon and The Harvard Law Review, requesting that they sign their names over to the University.

In return, the trademark office offers to license the group's name back to it free of charge.