Nike Sues StockX Over Sneaker NFTs
Updated · Feb 21, 2022
Nike filed a lawsuit against StockX on Thursday for using its trademarks without authorization on sneaker NFTs.
Sportswear giant Nike has sued the online reseller in a US federal court over unauthorized usage of its image for profit.
“Nike did not approve of or authorize StockX’s Nike-branded Vault NFTs,” the company stated in its complaint. “Those unsanctioned products are likely to confuse customers, create a false association between those products and Nike, and dilute Nike’s famous trademarks.”
The complaint goes on to say that StockX is “selling those NFTs at heavily inflated prices to unsuspecting customers who believe or are likely to believe that those ‘investible digital assets’ (as StockX calls them) are, in fact, authorized by Nike when they are not.”
StockX is a popular brand that revolves around reselling fashion items, electronics, and also collectibles. It is most known for buying and reselling high-end sneakers. The company was valued at around $3.8 billion last year.
More recently, StockX now offers NFTs — crypto-related digital assets that are non-interchangeable.
“A Virtual Playground for Infringers”
Nike considers NFTs exciting. Recently, it made a big move in that direction when it bought virtual sneaker brand RTFKT for an undisclosed sum. However, it also sees a downside to this side of blockchain technology.
The apparels brand added this in its complaint:
“This new frontier has swiftly become a virtual playground for infringers to usurp the goodwill of some of the most famous trademarks in the world and use those trademarks without authorization to market their virtual products and generate ill-gotten profits.”
Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.
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