Branding Without Trademark Due Diligence: What Nike’s Latest Trademark Lawsuit Teaches Every Business About Protecting Brand Identity

Trademark due diligence is one of the most important legal steps in protecting a brand, yet it is often overlooked until a business faces a costly trademark dispute. Businesses can spend months developing names, logos, packaging, and marketing campaigns, only to discover after launch that another company already owns similar trademark rights. The result can be costly litigation, delayed market entry, product recalls, expensive rebranding, and reputational damage.

Nike’s latest trademark dispute with 7-Eleven is a reminder that no business, regardless of its size or reputation, is immune from these risks. The lawsuit highlights why trademark clearance should be treated as an essential legal step before launching a brand, particularly for businesses expanding into new markets such as Nigeria. Drawing on Nike’s recent disputes, this article explains the legal lessons every business should understand to protect its brand identity and minimise trademark risk.

Background

On 1 July 2026, 7-Eleven filed a federal trademark lawsuit against Nike in the US District Court for the Northern District of Texas. The retailer alleges that Nike’s upcoming Air Max 95 ‘Big Bubble’ sneaker, released in an orange, green, and red colourway timed for 7-Eleven’s annual promotional day on 11 July, infringes its registered tri-colour trademark.

According to the complaint, 7-Eleven has used the stripe combination commercially since 1987 and owns multiple federal trademark registrations covering the design.

The dispute is not about logos alone. 7-Eleven argues that the colour combination itself has become distinctive enough to identify the company in consumers’ minds and therefore deserves trademark protection. The claim relies on well-established legal principles recognising that colours can function as trademarks once they acquire distinctiveness, much like UPS’s brown delivery vehicles and Christian Louboutin’s signature red-soled shoes.

The complaint further states that 7-Eleven attempted to resolve the matter privately before filing suit but that Nike intended to proceed with the launch regardless.

This Is Not Nike’s Only Live Trademark Dispute

Nike is defending another significant trademark battle involving its well-known “Total 90” brand.

Nike allowed its “Total 90” trademark registration to lapse in 2019, a gap Hugh Bartlett, a New Orleans-based engineer and youth soccer coach, used to register the name in 2022, forcing Nike into litigation just to keep using a brand it had built for 25 years.

Trademark attorney Andrey Mincov described the situation bluntly, observing that maintaining trademark registrations is not merely an administrative exercise but a strategic business decision.

Together, these disputes illustrate two very different trademark risks. One arose from an alleged failure to clear another company’s rights before launch. The other resulted from allowing an existing trademark registration to expire.

What Every Business Should Learn

1. Conduct Comprehensive Trademark Clearance Searches

Many businesses search only for identical brand names before launching a product. That is rarely enough. A proper trademark clearance search should also consider logos, colours, trade dress, packaging, product appearance, and other branding elements that may already be legally protected. Overlooking these rights can expose a business to infringement claims even where the product carries a completely different name.

2. Protect More Than Your Logo

Trademark rights are no longer limited to words and logos. Depending on the jurisdiction, colours, packaging, store layouts, product configurations, and other distinctive branding features may qualify for protection once consumers associate them with a particular business. The Nike dispute demonstrates how a colour combination alone can become the focus of expensive litigation.

3. Never Allow Trademark Registrations to Lapse

Trademark renewals are relatively inexpensive. Litigation to recover lost rights is not. Nike’s “Total 90” dispute shows that even globally recognised brands can lose valuable legal protection if renewal deadlines are missed. Maintaining registrations should form part of every company’s long-term intellectual property strategy.

4. Remember That Trademark Rights Are Territorial

Trademark protection does not automatically travel across borders. A registration in the United States provides no automatic protection in Nigeria, just as a Nigerian registration offers no automatic rights elsewhere. Businesses expanding internationally should conduct fresh trademark clearance searches and obtain registrations in every market where they intend to operate.

Under Section 5(2) of Nigeria’s Trademarks Act, a registered trademark is infringed where a person, without the proprietor’s consent, uses an identical or confusingly similar mark in the course of trade in relation to the goods for which the mark is registered.

For businesses entering Nigeria, this means local trademark searches and registrations should form part of the market-entry process rather than an afterthought once products are ready for sale.

5. Resolve Legal Issues Before Product Launch

Trademark disputes rarely begin in court. Most begin during product development, branding discussions, licensing negotiations, or marketing campaigns. Identifying potential conflicts at those stages is significantly less expensive than defending infringement proceedings after products reach consumers. Nike is now absorbing litigation costs, reputational damage, market uncertainty, and the risk of product recalls stemming from a branding decision that might have been avoided with earlier legal review.

Practical Trademark Checklist Before Launching a Brand in Nigeria

Before introducing a product or expanding your business into Nigeria, you should:

1. Conduct a comprehensive trademark clearance search.
2. Review names, logos, colours, packaging, and trade dress for potential conflicts.
3. Register your trademarks in Nigeria before commercial launch.
4. Monitor renewal deadlines to preserve existing rights.
5. Obtain legal advice before investing substantially in branding, manufacturing, or marketing.

Conclusion

Brand identity is legal property long before it becomes a marketing asset. The businesses that protect their brands most effectively are those that identify trademark risks before launch rather than after receiving a lawsuit. Nike’s recent disputes demonstrate that even globally recognised companies are not immune from avoidable trademark problems.

The same principle applies to businesses entering Nigeria. Before investing heavily in branding, product launches, licensing arrangements, or market expansion, businesses should ensure their trademarks and broader brand identity have been properly cleared against existing local rights and appropriately registered. Identifying legal risks before launch is significantly less expensive than defending infringement claims after a product reaches the market.

Frequently Asked Questions

1. Do I need to register my trademark in Nigeria if it is already registered in another country?

Yes. Trademark rights are generally territorial. A registration in another country does not automatically protect your brand in Nigeria. Businesses planning to operate or expand into Nigeria should consider conducting a local trademark clearance search and registering their trademarks in Nigeria.

2. Can a colour be protected as a trademark?

Yes. A colour or combination of colours may qualify for trademark protection if consumers have come to associate it with a particular business or brand. Whether a colour is protectable depends on the facts and the applicable trademark laws in the relevant jurisdiction.

3. When should a business conduct a trademark clearance search?

A trademark clearance search should be carried out before adopting a new brand name, launching a product, investing in marketing, manufacturing branded products, or expanding into a new market. Conducting searches early can significantly reduce the risk of infringement claims and costly rebranding.

4. What are the risks of launching a brand without trademark due diligence?

Launching a brand without proper trademark due diligence can expose a business to infringement claims, court injunctions, product recalls, damages, expensive rebranding, delayed market entry, and reputational harm. Identifying potential conflicts before launch is generally far less expensive than resolving disputes afterwards.

5. How can businesses reduce trademark risks when entering Nigeria?

Businesses can reduce trademark risks by conducting comprehensive trademark clearance searches, registering their trademarks in Nigeria, monitoring renewal deadlines, reviewing branding elements such as logos, colours, and packaging for potential conflicts, and obtaining legal advice before launching their products or services.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.