For Chapter 9 we will be taking an ambitious look at the Satan Shoes matter between Nike and MSCHF (in partnership with Lil Nas X), in relation to the MONTERO music video, which debuted at #1 on the Billboard 100 charts. (Note that "Montero" is actually Lil Nas X's legal first name.)

ASSIGNMENT

General Background

• In March 2021, Lil Nas X premieres his controversial, critically compelling music video, releasing his “Satan Shoes” collaboration with MSCHF, and Nike files a temporary restraining order and complaint against MSCHF  (9A (READ) Nike Sues Over 'Satan Shoes' - The New York Times.pdf)

TIMELINE

• On March 25, 2021, Lil Nas X premiered “MONTERO (Call Me By Your Name),” a song that has received great media attention, drawing both praise as well as criticism.
• On March 26, 2021, a Brooklyn-based art collective announced a collaboration with Lil Nas X that they would be selling “Satan Shoes,” a limited collection of 666 shoes that would go on sale for $1,018 per pair

**The description of the tweet is: “MSCHF x Lil Nas X "Satan Shoes"  Nike Air Max '97 Contains 60cc ink and 1 drop of human blood 666 Pairs, individually numbered $1,018  March 29th, 2021”. The tweet shows four images of the “Satan Shoes”: on the first image, there is a picture of the shoe from the right side, depicting a black Nike Air Max ’97, with the Nike swoosh, red liquid at the base of the shoe which is 60cc ink and 1 drop of human blood, a gold pentagram clipped onto the top shoe laces, as well as “6/666” on the side in red font behind the Nike swoosh and “Luke 10:18” on the side in red font in front of the Nike swoosh; on the second image, there is a picture of the shoes from the back, showing “air max MSCHF” on the left shoe going down in vertical text and “air max LIL NAS X” on the right shoe going down; on the third and fourth images, pictures of the custom red-colored box is shown, with images related to popular conceptions and historical artwork related to Hell along with the Luke 10:18 verse from the Bible (“I saw Satan fall like lightning from heaven”), the words MSCHF and LIL NAS X, and the shoes inside the box. 

On March 29, 2021, a complaint was filed with the U.S. District Court by plaintiff NIKE, INC. against defendant MSCHF PRODUCT STUDIO, INC, with four claims: (1) Trademark Infringement, (2) False Designation of Origin / Unfair Competition; (3) Trademark Dilution; and (4) Common Law Trademark Infringement and Unfair Competition. ( 9D (READ) COMPLAINT (Nike v MSCHF).pdf)

On March 31, 2021, the defendant provided a letter in advance of the TRO hearing. (9E (READ) Defendant Response Letter re TRO Hearing.pdf)

On April 1, 2021, the District Judge granted Nike’s request for a Temporary Restraining Order (TRO), with Nike to provide MSCHF a bond in the amount of $50,000.

On April 9, 2021, plaintiff Nike and defendant MSCHF Product Studio announced that the parties have agreed to settle.(9G (READ) ADR Settlement ‘Satan Shoes’ recalled as Nike, MSCHF settle suit.pdf)

QUESTIONS

1. On pages 3-15 of its Complaint, Nike provides a “Factual Background”; on pages 3-7, it discusses its trademark, and on pages 7-13, it discusses the defendant’s activities. Give me the tl;drLinks to an external site. in two paragraphs . According to Nike, what is the Factual Background for this case? (Each paragraph should not be more than 5 sentences.)
2. Nike provides several causes of actions, the primary three being Trademark Infringement, False Designation of Origin / Unfair Competition, and Trademark Dilution. Give me the tl;dr in one paragraph. In general, what is Nike arguing? What are the core similarities underlying each of these three causes of action? And how is Nike being harmed? (Your paragraph should not be more than 5 sentences.)
3. MSCHF provides a response. What is MSCHF’s argument as to why the Court should deny Nike’s request for a temporary restraining order?
4. On the Temporary Restraining Order, what does the Court rule, and why?
5. Note that this dispute was settled via ADR. Consider the statements provided by both Nike and MSCHF about the settlement. If this case was not settled, who do you think would have won? In your answer, feel welcome to be creative.
6. DISCUSS with a classmate. Comment on one of your classmates’ opinions and provide whether you agree or disagree with their opinion.
7. PARTICIPATION CREDIT. Which concepts in this chapter were the most challenging for you to learn, if any?