Beastie Boys v. Chili’s: When Ads Imply Celebrity Endorsement

The Beastie Boys and Chili’s Grill & Bar have reached an out-of-court settlement in a trademark and copyright dispute that should serve as a spicy lesson for small businesses everywhere. The legendary hip-hop group sued Brinker International, Chili’s parent company, over an unauthorized social media ad that used their 1994 hit “Sabotage” and mimicked the song’s iconic music video.

According to AOL, the settlement was filed in court on May 21, ending a lawsuit that began in July 2024. While financial details remain confidential, the case highlights critical intellectual property lessons that every business owner should understand.

What Chili’s Did Wrong

The offending advertisement featured three characters sporting obvious 1970s-style wigs, fake mustaches, and sunglasses—clearly intended to evoke the Beastie Boys from their famous “Sabotage” music video. The ad showed these characters “robbing” ingredients from a Chili’s restaurant while the song played in the background.

But here’s where Chili’s really got burned: they never obtained permission to use the song. The Beastie Boys have a strict policy against licensing their music for commercial purposes, a stance that was actually reinforced by the late Adam “MCA” Yauch’s will, which specifically prohibited such uses.

As X96 reported, the band was seeking $150,000 in damages, removal of the infringing content, and an injunction against future unauthorized use. This wasn’t Chili’s first rodeo either—Universal Music Group also settled a separate lawsuit with Brinker over unlicensed music use in other advertisements.

The Trademark and Copyright Double Whammy

This case illustrates how trademark and copyright violations often go hand-in-hand in advertising disputes. The Beastie Boys claimed both copyright infringement (unauthorized use of their song) and trademark violations (false endorsement implications).

When a business uses recognizable music, imagery, or personas without permission, they risk creating the impression that the artist endorses their products or services. This is exactly what trademark infringement enforcement is designed to prevent—consumer confusion about endorsements and affiliations.

For small businesses, this principle applies whether you’re using a famous song in your social media video or copying a competitor’s slogan. The key question isn’t whether you intended to deceive customers, but whether your use might reasonably confuse consumers about endorsements or business relationships.

Why the Beastie Boys Take This So Seriously

The Beastie Boys aren’t just being difficult—they’re protecting their brand. This isn’t their first legal rodeo: in 2014, they won a $1.7 million verdict against Monster Energy for similar unauthorized use of their music.

Interestingly, the band has licensed their music exactly once for commercial purposes: a 2020 Joe Biden campaign advertisement that used “Sabotage” to highlight COVID-19’s impact on the live music industry. The Biden campaign noted that the Beastie Boys agreed to the use specifically because of “the importance of the election.”

This selective licensing strategy actually strengthens their [trademark protection](https://harriganip.com/trademark-registration/). By consistently refusing commercial licenses and aggressively enforcing their rights, they maintain stronger legal grounds to prevent unauthorized use.

Lessons for Small Business Owners

While most small businesses aren’t creating national advertising campaigns, the principles from this case apply to everyday business practices:

Don’t Assume “Fair Use” Covers Commercial Use

Using copyrighted music in your business videos—even short clips on social media—requires permission. The fact that you’re a small business doesn’t create a “small business exception” to copyright law.

Celebrity Lookalikes and Parodies Have Limits

Creating content that evokes famous personalities or brands can create trademark issues, even if you’re not using their exact likeness or names. If consumers might think the celebrity or brand endorsed your business, you could be facing legal trouble.

Document Your Creative Process

If you’re creating original content that might be perceived as similar to existing works, document your creative process. Show that you developed your ideas independently rather than copying from others.

Get Proper Licenses

When in doubt, license properly. Services like ASCAP, BMI, and SESAC offer licensing for business use of music, and stock photo sites provide properly licensed images. The cost of proper licensing is always less than the cost of litigation.

The Broader IP Protection Strategy

The Beastie Boys’ approach demonstrates smart IP strategy. By consistently enforcing their rights and maintaining clear policies about licensing, they’ve built a fortress around their brand that courts take seriously.

Small businesses can apply similar principles by:

• Registering their own trademarks early through comprehensive trademark services
• Setting up trademark monitoring to catch potential infringements
• Developing clear policies about how their brand can and cannot be used
• Responding quickly to potential infringements, even minor ones

When to Fight and When to Settle

Both parties likely benefited from settling this case rather than going to trial. For Chili’s, a quick settlement avoids the risk of a large damages award and negative publicity from a trial. For the Beastie Boys, settlement achieves their primary goals: stopping the unauthorized use and reinforcing their no-licensing policy.

Small businesses facing similar disputes should consider that litigation costs can quickly exceed settlement amounts. However, establishing a pattern of defending your IP rights is crucial for long-term brand protection.

The Bottom Line: Respect IP Rights

Chili’s learned an expensive lesson that every business owner should internalize: when using copyrighted or trademarked material, you need permission. Period. The creative team behind that “Sabotage” ad should have obtained a “License to Ill” before hitting publish.

For small businesses, the message is clear: respect intellectual property rights, whether they belong to the Beastie Boys or your local competitor. The few dollars you save by not licensing properly could cost you thousands in legal fees and damages.

As the Beastie Boys might say, you’ve got to fight for your right—to protect your intellectual property. And when someone infringes on those rights, don’t be afraid to make some noise about it.

Need help protecting your brand or responding to intellectual property disputes? Contact Harrigan IP for guidance on trademark enforcement and brand protection strategies.