AceShowbiz - Eminem has suffered a significant legal defeat in Australia after losing a trademark dispute with the Sydney-based beach brand Swim Shady. The ruling means the company can continue selling their beach products without interference from the rapper or his team.

On July 1, trademark adjudicator Benjamin Goldsworthy ruled against Eminem, stating that his long-held "Shady" trademarks do not provide protection against Swim Shady’s use of the name for their beach umbrellas, towels, and swim bags. This decision effectively limits Eminem's trademark rights in Australia, excluding key merchandise categories like clothing and accessories.

Eminem has owned trademarks for "Shady" and "Shady Limited" in Australia since 2002. However, Goldsworthy found that Eminem never actually used these trademarks on clothing, bags, footwear, or related merchandise during the relevant period under review. The evidence presented showed only three customer purchases of Eminem merchandise in Australia across the entire examined timeframe, which was deemed insufficient to establish a strong business presence in that market.

The adjudicator emphasized that Eminem failed to demonstrate control over merchandise sales in Australia, a critical factor that undermined his legal position. This lack of active commercial use was the decisive element in the ruling.

Swim Shady was founded by Jeremy Scott and Elizabeth Afrakoff in December 2024. Their company focuses on beach products unrelated to hip-hop culture or Eminem's brand identity. The founders maintained that their choice of name was coincidental and not intended to exploit Eminem's famous alter ego.

Following the decision, Scott and Afrakoff expressed their satisfaction, highlighting the careful consideration given to the case and the favorable outcome for their company.

Additionally, Eminem has been ordered to pay Swim Shady’s legal fees as part of the ruling. He has until July 22 to decide whether to appeal the verdict and continue the fight in Australian courts.

This setback comes amid another ongoing trademark dispute involving Eminem and the "Reasonably Shady" podcast, hosted by Robyn Dixon and Gizelle Bryant of Real Housewives of Potomac fame. That case is expected to extend into 2027 with no resolution yet in sight.

With these legal challenges mounting, Eminem will need to weigh whether investing further resources in the Australian case is worthwhile or if his focus should shift to other priorities.

This article is based on reporting originally published by AllHipHop.