Nike and "Satanic" Sneakers: 4 Brand Cases

Contents:

• The Satan Shoes Scandal: How Nike Responded to the Challenge
• Back to Roots: How Burberry Overcame Associations with Gopniks
• The LEGO Case: Unique Concepts and Community Challenges
• The Kalashnikov Trial: Impact on Branding and the Law

The Satan Shoes Scandal: How Nike Responded to

In March 2021, the fashion and music worlds witnessed an unusual marketing event: rapper Lil Nas X, who rose to fame thanks to a viral TikTok challenge, released a limited edition sneaker in partnership with Brooklyn brand MSCHF. At first, this project seemed like a simple collaboration, but it soon attracted the attention of global media and became the subject of discussion.

Lil Nas X and MSCHF released 666 pairs of unique Nike Air Max 97 sneakers, dubbed the Satan Shoes. These sneakers attracted attention not only for their original design but also for their unusual elements. Human blood mixed with red pigment was added to the air capsules on the soles, which became the subject of discussion and controversy. Furthermore, metal pentagrams were placed on the laces of the sneakers, adding a touch of elegance and provocation. Satan Shoes became a symbol of defiance and self-expression, causing widespread controversy in society and the fashion industry. Nike learned of the release of Satan Shoes and immediately filed a lawsuit against MSCHF, claiming trademark infringement. In the lawsuit, Nike also claimed that Satan Shoes damaged its reputation and demanded the destruction of all copies that could evoke associations with its brand. On March 31, 2021, the court upheld Nike's claims and issued a temporary injunction against the sale of Satan Shoes. This case became a landmark in the field of trademark and brand reputation protection, highlighting the importance of protecting intellectual property in the fashion industry. In the business world, it is not uncommon for brands to find themselves embroiled in marketing scandals despite having no direct connection to them. Such incidents raise important questions about how companies can effectively manage negative associations and protect their reputations. In the future, we will analyze examples of successful and less-than-successful brands' efforts to combat unwanted associations in order to identify best practices and strategies that will help minimize damage and restore consumer trust.

Back to Its Roots: How Burberry Overcame Associations with Gopniks

In the early 2000s, Burberry, a well-known British brand, faced serious challenges that affected its image. Instead of being associated with elegance and respectability, the brand became a symbol of a youth subculture known as "chavs." These young people, often football fans, were distinguished by aggressive behavior and style, which led to a negative perception of Burberry among more affluent and respectable customers. The brand faced the threat of losing its prestige and was forced to revise its marketing strategies to regain the trust and respect of its target audience.

The Burberry brand has become a symbol of success and status, but many people cannot afford expensive clothing and prefer budget accessories, such as caps with a distinctive tartan print. By the mid-2000s, this print had become so strongly associated with representatives of the chav culture that some establishments began refusing entry to people wearing clothing with this pattern. This negatively affected Burberry's image and led to a loss of loyalty from traditional customers. The brand needed to rethink its strategy to restore its reputation and attract a new audience.

To combat the negative association, Burberry strengthened its measures against counterfeiting and significantly reduced the production of products with the distinctive print. The brand discontinued production of the famous caps and focused on high-end fashion shows and the new Prorsum line. Celebrities like Kate Moss and Emma Watson played a vital role in establishing Burberry bags as iconic accessories, often fetching thousands of pounds. For those who wanted to experience the world of Burberry but couldn't afford the luxury items, premium cosmetics from the Burberry Beauty line were introduced. Thus, the brand successfully strengthens its position in the market, offering a variety of products that make it accessible to a wide audience, while maintaining the status of exclusivity and luxury.

By the late 2010s, millennials began to show interest in the fashion styles of past eras, and the Gopnik style enjoyed a resurgence in popularity. In response to this trend, in 2017, Burberry unveiled a collaboration with Russian designer Gosha Rubchinskiy, known for his work inspired by suburban culture. Burberry Creative Director Christopher Bailey emphasized that Gosha's reimagining of iconic pieces represents a new and exciting direction while respecting the brand's cultural heritage. This collaboration has become a shining example of how modern designers can reimagine classics to create unique and relevant looks.

LEGO Case Study: Unique Concepts and Community Challenges

The LEGO Ideas platform allows anyone to submit their ideas for new construction sets. Projects that receive 10,000 user votes are submitted to the LEGO Expert Panel for review. Once approved, the best concepts become actual sets available for sale, such as sets based on the cult TV series Friends and Doctor Who. LEGO Ideas opens the door to creative people and fosters the realization of unique ideas in the world of building.

Artem Bizyaev, an artist from St. Petersburg, developed a unique project inspired by Russian folk tales. His collection includes elements such as a hut on chicken legs, as well as figurines of famous characters like Baba Yaga and Vasilisa the Beautiful. However, the process of submitting the project to the LEGO platform proved challenging. Moderators repeatedly rejected the idea due to its dark details, such as a bone fence and a skull-shaped lamp, which were ultimately removed. This underscores the importance of complying with platform requirements and sensitivity to content based on folklore.

After successfully submitting the description, the project quickly went viral, attracting attention on Twitter, Pikabu, and in publications such as Rossiyskaya Gazeta and Meduza. Thanks to this, Bizyaev was able to gather the necessary votes in just one day. This sharp increase in interest demonstrates the project's importance and relevance in the current climate.

Recent events have raised suspicions of possible vote manipulation in the LEGO community. Artyom noted, "Many have accused my project of foul play. Russian hackers have interfered again!" The brand has initiated an investigation to clarify all the circumstances, but the results of the investigation have not yet been made public.

Vote manipulation is an unacceptable practice, but collecting 10,000 votes in just 24 hours is truly a significant achievement. Therefore, LEGO's concerns in this situation are entirely justified, says Ramil Karimov, Client Services Director at the KROS communications agency.

In such situations, the brand needs to establish transparent and polite communication with the project's author. Publishing a comment on the platform can be a reasonable step to resolve the issue. Large international companies typically have clear procedures for resolving disputes, allowing them to effectively manage their reputation and maintain trust in their brand.

After completing the review, LEGO must provide the results and clearly explain its position. Simply rejecting the review without detailed explanations can negatively impact the brand's reputation. Transparency in communication is important to maintain the trust of customers and partners.

The Kalashnikov Lawsuit: Impact on Branding and the Law

The Kalashnikov concern, widely known for its weapons, has been engaged in legal proceedings with the hockey stick manufacturer Zaryad for almost three years. Interestingly, this company does not manufacture firearms, but its sticks are named after famous Russian assault rifles such as the AK 12 and AK 47. This conflict highlights the importance of brand and intellectual property protection, and raises questions about the legality of using military-related names on civilian products.

Zaryad, which previously held a license to manufacture hockey sticks, did not renew its contract after it expired. As a result, Kalashnikov is demanding 500,000 rubles in compensation from Zaryad. However, experts believe the final figure could rise to 2.3 million rubles, which is the cost of all the counterfeit hockey sticks.

Lawyer Alla Bitarova of the Delcredere law firm explains that lower courts had already established trademark infringement, but the compensation amount was reduced. The Court of Cassation did not uphold this decision and remanded the case for a new trial. It is highly likely that Kalashnikov will be able to recover compensation equivalent to the cost of the counterfeit hockey sticks sold. Such cases highlight the importance of protecting intellectual property and the need for strict compliance with trademark law.

Zaryad, which generated revenue of 150.5 million rubles in 2019, suffered a loss of 120.1 million rubles. In this context, 2.3 million rubles represents a significant financial burden. However, for the Kalashnikov Concern, this amount appears insignificant. One wonders why a large concern would decide to initiate legal action against a small hockey company? This issue raises a lot of speculation and requires in-depth analysis.

If the court rules in favor of the Kalashnikov Concern, it is possible that the production of the hockey sticks named "AK 12" and "AK 47" will be closed. This could be part of the company's broader strategy to combat counterfeit products. Since the collapse of the USSR in 1991, the concern has not granted licenses for the production of its assault rifles, yet counterfeits continue to appear in various countries, highlighting the urgency of the issue of intellectual property protection. The outcome of this case could have a significant impact on the market and set a precedent for other manufacturers seeking to protect their brands and unique names.

The Kalashnikov Company cannot afford for its former partner to continue to profit from association with their respected brand while ignoring legal regulations. Ramil Karimov of KROS emphasizes that inaction in this situation could be viewed as connivance, which would negatively impact the company's reputation. This is important not only for Kalashnikov, but also for other organizations striving for respect and reliability in the B2B sector. Maintaining strict standards and complying with legal regulations are key factors in building a positive image and trust among partners and clients.