Eminem faced a setback in an Australian courtroom, where he lost an important trademark dispute against Swim Shady, a small beachwear and equipment company based in Sydney’s Northern Beaches.

The Australian Registrar of Trade Marks ruled against the rap legend, affecting his merchandise protections in the region.

The conflict arose when entrepreneurs Jeremy Scott and Elizabeth Afrakoff launched Swim Shady in December 2024, offering high-end beach products like umbrellas, swim bags, towels, and shorts across over 50 stores nationwide.

Eminem’s legal team claimed the startup’s name was confusingly similar to his alter ego, Slim Shady, and opposed their trademark application on grounds that it was misleading consumers into believing there was an official connection.

The ruling by trademark adjudicator Benjamin Goldsworthy favored the Australian company, citing a critical point: although Eminem had held Australian trademark rights for “Shady” since 2002, he hadn’t genuinely used those trademarks for clothing, footwear, or leather goods in the market as required.

The evidence presented, including tour merchandise records and social media data, showed only three sales to Australian consumers during the relevant period, handled by his record label rather than directly by him.

As a consequence of this “David vs. Goliath” decision, Eminem will lose his trademark protections for “Shady” in Australia for apparel, footwear, and luggage starting August 1, 2026, although he’ll maintain rights for music, entertainment, and electronics.

Moreover, he must cover Swim Shady’s legal defense costs. His legal team has until July 22, 2026, to file an appeal, which could impact similar lawsuits Eminem has initiated against the brand in other countries like the United States, United Kingdom, and Japan.