Mexican authorities have opened a dispute with Adidas after the sportswear maker launched the "Oaxaca Slip On," a sandal co-designed by U.S.–Mexican designer Willy Chavarría that replicates the woven leather huarache traditionally made in the Zapotec community of Villa Hidalgo Yalálag. Officials say the company used the state’s name and design elements without approval, amounting to cultural appropriation. The Oaxaca government filed a complaint on 6 August demanding that Adidas suspend sales and acknowledge the design’s origin. President Claudia Sheinbaum endorsed the move two days later, describing the huarache pattern as “collective intellectual property” and warning that Mexico would seek compensation under its heritage law if talks fail. Deputy Culture Minister Marina Núñez said Adidas has already contacted state officials to discuss restitution for the community that was "plagiarized." In a letter released by Governor Salomón Jara, Adidas offered to “repair the damage” and requested a meeting with local authorities. The company subsequently issued a public apology on 9 August, affirming its “deep respect for the cultural wealth of Mexico’s Indigenous peoples.” Reuters reported that Mexico is negotiating a financial settlement, though no figure has been disclosed. Designer Willy Chavarría also expressed regret, conceding that the launch "did not live up to the respect and collaborative approach" owed to the artisans. He acknowledged that the sandal appropriated the Oaxaca name and should have been developed in partnership with the community. The episode has prompted the federal government to accelerate work on legislation that would strengthen protection of Indigenous intellectual property, a recurring issue for Mexico in previous disputes with global fashion brands.