Well no, they couldn’t. The article literally says that prior to this only that one bar in New Jersey could use it because they had a statewide trademark on it. Because they dropped it, anyone can now use it including other small bars in Jersey.
What this is doing is ensuring it remains open for use by anyone. Taco Bell, Taco Johns, Taco Suzy, whatever. Before, anyone could register for the trademark if no one else had, and start screwing over other small players.