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Eminem sues Australian beach brand 'Swim Shady'
(www.bbc.com)
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And that’s basically it!
By the same reasoning, couldn't Mars sue Eminem saying his name is too similar to their trademarked product name M&M's?
I think that the initials M&M have been sufficiently well used by various entities throughout history that they could not hope to prove that the name originated with them. Given that part of maintaining a trademark is defending it against encroaching use the existence of other corporate M&M companies, M&MDirect for example, would lead to their lawsuit failing.
Swim Shady, on the other hand makes no sense at all as a name if Slim Shady wasn't already a well known thing.
That makes the name pretty clear and meaningful entirely outside of the existence of a Slim Shady.
It's a pun on the name, pure and simple.