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Nike had initially accused MSCHF of infringing its copyright after they used the Air Max 97 design to create the limited edition shoe to promote rapper Lil Nas X's new track 'Montero (Call Me By Your Name)'.
The brand argued the 'unauthorised' use of its own recognisable shoe style was 'likely to cause confusion and dilution and create an erroneous association between MSCHF's products and Nike' and had caused 'significant harm to [Nike's] goodwill, including among consumers who believe that Nike is endorsing satanism'.
Well, now Nike has reached a settlement that will see MSCHF start a voluntary recall of the Satan Shoes, as well as its previously released Jesus Shoes which were also heavily borrowed from Nike's Air Max designs.
MSCHF has agreed to buy back the sneakers at retail price and remove them from circulation, according to a Nike statement on Thursday.
That statement read: "Nike had nothing to do with the Satan Shoes or the Jesus Shoes.
"If any purchasers were confused, or if they otherwise want to return their shoes, they may do so for a full refund.
"Purchasers who choose not to return their shoes and later encounter a product issue, defect or health concern should contact MSCHF, not Nike."
The notice of this settlement has not yet been filed with the court.
On the part of MSCHF, it said the settlement was a good way to put the whole ordeal behind them and to help them concentrate on new projects.
However, the organisation's statement on the settlement was still fairly critical of Nike.
David H. Bernstein, a lawyer representing the art collective, said: "MSCHF intended to comment on the absurdity of the collaboration culture practiced by some brands, and about the perniciousness of intolerance."
Nike first sued MSCHF - which is pronounced 'mischief' - back in March and won a temporary restraining order against the sale of the shoes on 1 April.
However, a recall request from Nike was declined by a judge, despite Nike arguing the shoes could dilute or damage its brand.
They certainly sold well, with collectors snapping up all of the shoes in less than a minute.
Bernstein said the shoes were 'were individually numbered works of art that will continue to represent the ideals of equality and inclusion wherever they are displayed'.
The shoes were created with Lil Nas X and featured a satanic theme with a bronze pentagram, whereas the sole of the shoes contained red ink and a single drop of human blood.
Nike concluded: "The parties are pleased to put this dispute behind them."
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