A more thorough explanation:

Scandalous subject matter refers to words, phrases, symbols, or images that are considered offensive to society's values and beliefs. In the United States, the Patent and Trademark Office may refuse to register a trademark that contains scandalous subject matter.

For example, a trademark that includes a graphic depiction of sexual acts or vulgar language may be considered scandalous and therefore not eligible for registration. Similarly, a trademark that promotes hate speech or discrimination based on race, gender, or religion may also be refused registration.

The term "scandalous" is often used interchangeably with "immoral" in this context, and both refer to subject matter that goes against accepted social norms and values.