It's not about right or wrong, it's about how many lawyers you can afford. If you can afford lots of lawyers, you can run out the clock, drain your opponents budgets, craft laws and lobby for their passage, and all sorts of creative ways of getting around doing the right thing.

A random creator in China in the early oughts wouldn't have a chance in hell against Nike or any other big corporations, trademark and copyright isn't and wasn't set up for foreign citizens to leverage IP against domestic entities. Without starting with a big legal team and a US corporation and having all the reams of paperwork and registrations and forms in triplicate, he just wasn't playing the same game. He should have been reimbursed or gotten a royalty, from a moral standpoint, but he didn't have any valid legal standing.

A court tried to be generous in the interpretation of the law in order to grant him his first victory, and that would probably have been a good precedent, but the law isn't really designed to be flexible like that - it's very rare that "the right thing" ends up congruent with how the law works in practice.