The Australian Registrar of Trade Marks stripped Eminem's 'Shady' trademark of clothing protection from 1 August, because he had not actually used it on merchandise here. A small Sydney brand won on evidence of use. Registration is the start of protection, not the finish.
A trademark is not a trophy you win once and hang on the wall. It is a working asset that you either use or lose.
A Sydney beach brand called Swim Shady has beaten Eminem in an Australian trademark fight, and the reason it won is a lesson every brand owner should file away. On 1 July the Australian Registrar of Trade Marks stripped the rapper's "Shady" and "Shady Limited" trademarks of their protection for clothing, footwear, headwear, bags and leather goods. From 1 August, those categories are open.
The basis was not fame or lawyers. It was use, or the lack of it. The delegate found Eminem's "Shady" marks had not actually been used on clothing and merchandise in Australia during the required period. The evidence he submitted, tour merchandise, website sales and social posts, was mostly tied to his Slim Shady persona and his music, not to a working product trademark. Only a handful of Australian sales were on record, and all of them fell outside the relevant window.
Eminem keeps "Shady" for other categories, including music and electronics, and has until 22 July to appeal. He has also been ordered to cover Swim Shady's legal costs. The global fight continues in the US, the UK and Japan.
Why it matters
Plenty of businesses register trademarks defensively, in categories they never actually trade in, and assume the registration alone protects them. This ruling says otherwise. A mark you do not use in a category is vulnerable to being cleared out by someone who does. A global icon lost ground in Australia to a small local brand because the local brand actually sold the product and the icon did not.
The date Eminem's "Shady" trademark protection lapses for clothing and merchandise in Australia, after a non-use ruling. Source: Rolling Stone AU, SmartCompany.
For Australian brands, it is a reminder that your IP is only as strong as your evidence of using it. Registration is the start, not the finish.
What to do about it
Swim Shady won because it did the ordinary thing well. It used its name, sold its product and kept the receipts. That is the whole lesson.