Nike sues StockX for trademark infringement and selling unlicensed NFT sneakers

The world’s largest athletic apparel company Nike has kicked off the “licensed NFT” wars by suing StockX, an online reseller, for trademark infringement and the sale of unlicensed NFT sneakers.

A report by Reuters revealed that Nike has filed a lawsuit in the New York federal court against the reseller, seeking an unknown amount in damages along with the demand of halting sales of such virtual collectibles. According to reports, StockX began selling Nike sneaker NFTs in January and promised buyers that they would be able to redeem the real-world versions of the footwear shortly.

StockX used Nike logo, the sale is still live

The company stated in a 50-page complaint that StockX sold around 500 NFT sneakers with the Nike logo, playing with the company’s reputation and legitimacy. The NFT sneakers were also allegedly marketed at inflated rates with “murky terms of purchase and ownership,” according to the shoemaker giant.

StockX is a well-known online retailer with a market cap of $3.8 billion, and the NFT sneakers in question are still available. The “Vault” series consists of nine premium Nike sneakers and deals with NFTs that are linked to a real-world asset.

NFTs, according to Nike, are a way for brands to interact with their customers, but some market participants are attempting to “usurp the goodwill of some of the world’s most famous trademarks and use those trademarks without authorization to market their virtual products and generate ill-gotten profits.” The company in November 2021, filed trademark application, hinting its entry in the Metaverse. Later in January, the shoemaker will debut its own NFTs line in collaboration with RTFKT, a newly acquired art studio. 

The rival company Adidas, after joining hands with Coinbase, also marked its entry into the NFT world by launching its NFT collection.

NFTs, like every other popular decentralized sector, have gotten to the point of misuse. Aside from Nike, there has been a slew of additional cases involving prominent brands and celebrities over NFTs. Miramax, the Pulp Fiction film’s production company, sued Quentin Tarantino, the film’s director, for selling NFTs of the movie, claiming copyright violations. Tarantino recently paused its NFT auction, as TheCoinRise reported.