Article is at Pitchfork, here:
http://www.pitchforkmedia.com/news/05-06/23.shtml
Dischord statement: "They [Nike] stole it and we're not happy about it. Nike is a giant corporation which is attempting to manipulate the alternative skate culture to create an even wider demand for their already ubiquitous brand. Nike represents just about the antithesis of what Dischord stands for and it makes me sick to my stomach to think they are using this explicit imagery to fool kids into thinking that the general ethos of this label, and Minor Threat in particular, can somehow be linked to Nike's mission. It's disgusting."
The offending Nike artwork is here: http://www.nike.com/nikeskateboarding/v2/assets/bottomBar/threat/major_threat_bg_v2.gif
Nothingnice.com also has a comic strip about the ordeal:
-B.