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Nike, Inc., manufactures and markets footwear, apparel, and…

Nike, Inc., manufactures and markets footwear, apparel, and related accessories. Eva foam (Ethylene Vinyl Acetate) is a very environmentally friendly material used in many shoes. The main producers of Eva Foam are located in China. Eva Foam is one of the most efficient materials that Nike uses in their shoes. Nike has had a supply contract with an Eva distributor located in California. Last February, when the material arrived, Nike claimed that it was an inferior quality. The parties submit their dispute to Charles O’Leary, an arbitrator who is an expert in the rubber and synthetic material industry. Discuss the choice of submitting the dispute to an arbitrator and not to a court. Nike is facing another legal issue. To identify its products, Nike uses the word “Nike” and/or a “swoosh” design as its trademarks. Nike began using the phrase “Just Do It” in 1989 as a slogan for its sweatshirts, T-shirts, caps, and other accessories. Michael Goldwyn is an award-winning commercial artist whose works include sports teams’ logos and trademarks. As a summer project, he and his daughter decided to market his first name, Mike, as a takeoff on the Nike logo. They named their project “Just Did It” Enterprises and concentrated on marketing T-shirts and sweatshirts to members of the general public with the first name of Michael. They also mailed brochures to college athletes and celebrities named Michael. Sales were entirely by mail order. Approximately two-thirds of those purchasing the shirts were named Mike. Goldwyn believed that the other third probably bought a T-shirt for a friend, relative, or loved one named Mike. Nike would like to sue Goldwyn for trademark infringement. You work in Nike’s Legal Department.  What can you suggest about the said legal action? Is it a wise move? What defenses is Goldwyn likely to put forward in order to counter Nike’s arguments? Which party do you think would prevail?