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My school had an acceptable use policy for it's mascot and symbols. We could display it but not alter it in any way. Much as my sorority has an acceptable use policy for our official letterhead designs (same as on webpages) etc.
It was just one more thing to keep in mind when designing our webpage. Now if I wanted to start a random website and use the school's mascot, I'd either have to get permission (definately if I was selling something) or follow the policy.
Um basically, find the policy!
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