Nike Files Lawsuit Against StockX Over Sneaker NFTs
Claiming that StockX’s NFTs infringe on the brand’s trademarks and are likely to confuse consumers.
Sportswear industry leader Nike sued StockX in New York federal court on February 3, 2022 accusing the gargantuan resell platform for selling unauthorized sneaker NFTs of Nike shoes. The Swoosh is claiming that the Detroit-based sneaker and apparel marketplace is infringing on the brand’s trademarks, and as a result, confusing its consumers due to the fact that the NFTs are being sold at inflated price and have “murky terms of purchase and ownership.”
“Nike did not approve of or authorize StockX’s Nike-branded Vault NFTs,” the 50-page complaint states. “Those unsanctioned products are likely to confuse consumers, create a false association between those products and Nike, and dilute Nike’s famous trademarks.” The brand claims that StockX has sold over 500 Nike-branded Vault NFTs to-date, some of which are one of ones while others have been produced in quantities from 100 to 250. In short, the Swoosh team is requesting that StockX halts all sales and marketing of any NFTs that possess Nike marks and to pay up for any monetary damages that the brand has suffered.
The metaverse is a space that Nike has made serious moves in as of late, the biggest of which was the acquiring of NFT brand RTFKT back in December 2021. Elsewhere the complaint, the brand mentions that it has intentions of launching more virtual products in February and that it views NFTs as a vital component of commerce down the line.
Representatives from Nike and StockX have not made any official statements on the matter thus far.
In other news, Nike recently became an equity investor in the WNBA.
