Without getting into specific cases it comes down to whether or not Rugby League can be shown to be a market in South East Queensland.
As per below it does not matter if Mr Ignorant Southerner does not know who the Redcliffe Dolphins are. It comes down to whether or not a rugby league fan from South East Queensland does. If he does then Gold Coast would be infringing upon Redcliffe's trademark.
That, and if Redcliffe can successfully register it. As they were first in that market, it should be no problem.
"Nonetheless, the court grudgingly acknowledged its earlier opinion in <removed>, which held that niche fame within a limited geographic area or a specialized market segment may support a claim of dilution occurring within that niche. However, in order to maintain coherence in relation to the level of fame generally required for a dilution claim, the court emphasized that niche fame must be concentrated in a highly specialized market segment with an identifiable customer base. In other words, consumers within the niche must be likely to make associations between marks that the general public would not make. "