Mambo copped criticism on social media after reports first emerged that Mambo had sought to stop Malcolm Mabo from registering a business named Mabo, on the grounds it was "substantially identical" or "deceptively similar" to its own name. The business would feature indigenous art and include beachwear.
Many Twitter users warned of brand damage and threatened to boycott the Sydney-based business if it continued legal action. Other people expressed their disappointment on the Mambo website.
Yesterday, Mambo's Twitter account said: "Touché. We've got to cop it sweet when we often dish it out. Have no concern good people, Mambo is confident Mabo will be happy with outcome."
According to The Australian, peacetalks held yesterday led to an agreement that Mambo would re-release a 1992 t-shirt with the words "100% Mabo" on it, with proceeds to be donated to Malcolm Mabo's business.
Mambo's managing director Angus Kingsmill told the paper Mambo had "never wished to stand in the way of Malcolm and his new venture, (but) we wanted to establish guidelines about logo usage."
"Now, having spoken to Malcolm, we've decided to shove the guidelines where they belong."
Kingsmill was contacted by SmartCompany but did not respond before deadline.
Independent brand expert Michel Hogan says brands often get bogged down in the wrong things.
"There are distinguishing characteristics beyond the name," Hogan says.
"Focus on what differentiates you, focus on your customers."
Hogan says while the argument seems to have centred on the closeness of the two names, there should have been some consideration that it was his family name Malcolm Mabo was seeking to register.
She adds that attempting to block the registration of the Mabo name does not suit the image of beachwear businesses being relaxed and laidback.
"I'm all for brand defence, but you need to be a little smart about how you go about it."
"With Mambo, I probably would have stood back and looked at my values and taken a sidestep."
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