Why did OHIO University wait until 1995 to trademark OHIO?
Back in the day - I'm thinking 1960s - if you'd walked into the College Book Store, you would have seen a far less extensive array of logo'd apparel and merchandise. Schools - or at least many - were slow to savvy up on marketing.
Then schools came to realize that a broader array of logo'd items would produce a range of marketing payoffs - including higher royalty income which has run about 7% of retail prices (percentage might have changed in recent years).
That evolution spurred thinking that logos and brandmarks should be copyrighted.
In addition, by the time Ohio got around to registering Ohio as a trademark - applying only to licensed apparel and merchandise - other state-named schools already had done so. That last fact explains why Ohio State had little chance to prevail had its complaint against Ohio proceeded to a hearing before an administrative law judge. Hence the settlement.