Channel Signal Analyst, David Sweeney, brought this to my attention yesterday. Needed a day to think about it.
In short, Nike is taking on two Northeastern College kids for making tee shirts that announce, Just NU It. NU students Matthew Valich and Charles Svirk want to now take this to other Universities, like DU (Denver University), and make a go of it. Matt and Charles have hired the South Butt attorney that represented Jimmy Winkelmann in the South Butt case. Here’s the Article.
Channel Signal has collected and measured 100′s of thousands of online posts on the South Butt case for our client, The North Face. So, we have some experience here.
Here’s our advice to Nike and the young company called Univarsity (correct spelling).
1. Both sides seem willing to settle. Just Do It.
2. If you don’t, then you Nike, should prepare for the full force and power of an online population that is young, powerful, willing to invest time and money…all to fight the behemoth called Nike. And once they engage, then traditional media engages. Your legal and pr teams will be busier then they ever thought possible.
3. Nike, your lawyers don’t know how to fight this battle. Much money will be wasted.
4. Matt and Charles. Good idea, but this may not go the way of South Butt. Know what you want and then go negotiate with Nike to get it.
5. Nike, last I checked your revenue is north of 35 billion. And I’ll bet Univarsity isn’t making $10,000 a month. Engage in a fight and you will be perceived as the 800 pound gorilla. And you have built your enormously successful company on the aspirations of millions of Americans that they can get out and “Just Do It.”
Just Don’t Do This. Find a better way.
Paul Kirwin, Founder and CEO of Channel Signal
I always hoped that Nike’s actions with South Butt and now Univarsity was done intentionally to help promote small companies.
OK, naive. But I thought that ideas was better than thinking Nike was that dumb!
Jim, Good to hear from you. Just to clarify, The South Butt was a conflict between South Butt and The North Face.
Univarsity and Nike now have the conflict. You probably already knew this, but I was a little confused by your response.
And, like you, I now doubt that any large company is willing to sacrifice any brand equity for the benefit of small companies.
Small companies have a lot of new tools to compete, mostly in new media. There are many ways for
a young company to get its message out. And if some want to take on 800 pound gorillas, well, they better know what they are doing.
Protection of brand equity is a bed-rock principle for many of these large companies.