Nike Nike Sues StockX Over Sneaker NFTs

Nike Sues StockX Over Sneaker NFTs

Nike is suing StockX in federal court in New York over the marketplace’s sale of Nike-branded NFTs.

Nowadays, it appears as though every brand is releasing some form of NFT collection. Sneaker brands are no exception, and while Nike was late to the game, they did initiate plans not long ago. This was revealed in November through their USPTO filings, which detailed their intention to create and sell digital goods such as footwear, clothing, headwear, and eyewear. Additionally, the trademark protects both the Jumpman and Swoosh logos, preventing creators in the NFT space from utilising the two logos.

StockX, on the other hand, missed the memo. The resale platform launched their “Vault” NFTs earlier this year, transforming some of the culture’s most popular releases into the digital collectible. Each represented a physical version — stored, brand new, and secure — and one would be able to “flip” their pair in order to avoid seller fees, shipping, and the like. Additionally, redemption of the NFT was possible in the near future, and the company mentioned the possibility of special benefits such as limited promotions, early release dates, and cultural events.

The images themselves drew Nike’s attention, which is why the brand is suing StockX. While representatives have declined to comment at the moment, the Swoosh has stated that the StockX NFTs violate their trademarks and may cause consumer confusion.

“Nike neither approved nor authorised StockX’s Nike-branded Vault NFTs,” according to the complaint. “Those unapproved products are likely to confuse consumers, foster an erroneous association between them and Nike, and dilute Nike’s illustrious trademarks.”

Additionally, the complaint makes reference to NFT’s inflated price and terms of ownership, which have created doubt among customers and may have a detrimental effect on Nike’s reputation. And, given that StockX has already sold over 500 Swoosh-branded NFTs, Nike claims that the damage has already been done — especially when considering that the Black/White Dunk Lows are selling for $500 more than their physical counterpart.

Given Nike’s recent acquisition of RTFKT for their own collections, it’s likely they felt compelled to act. Expect additional updates as this storey develops.

Source: Coingape / Reuters