Actually there are plenty of bands that do close names for comedic purposes that get rights to use that name from the original. (eg: [artist]Cannibis Corpse[/artist] with [artist]Cannibal Corpse[/artist])
Chilli Pipers are one of the rare cases where the Chilli PEPPERS gave the go-ahead to use of the likeness of their name. I know a few of the boys, and the belief is that the Peppers didnt think the Pipers would do as well as they did, when they allowed them to use the likeness of the name. Local boys have done good, well proud of them aw.