Nike Files Lawsuit Over Counterfeit Sneaker NFTs

Nike Files Lawsuit Over Counterfeit Sneaker NFTs


Key Takeaways

Nike has filed a lawsuit against the sneaker marketplace StockX.
The filing alleges that StockX’s Vault system is freeriding on the back of its trademarks and intellectual property.
StockX has not yet commented on Nike’s lawsuit, citing a policy against public statements on pending litigation.

Share this article

Nike is suing the sneaker reselling platform StockX over NFTs of Nike footwear sold to StockX customers. The suit alleges that StockX is freeriding on the back of Nike’s trademarks and associated goodwill.

Nike Sues StockX

Nike is defending its intellectual property rights from counterfeit NFTs.

The sportwear titan filed a lawsuit against sneaker reselling platform StockX Thursday, claiming that the marketplace is infringing on its intellectual property rights by issuing NFTs of Nike shoes. 

In January, StockX released its first NFT venture called Vault. StockX users can purchase NFTs of popular collectible sneakers that are backed by a physical pair of shoes. Because the NFTs are backed, owners can redeem their NFTs for a physical pair of sneakers if they wish to do so. The new NFT system helps sneaker collectors and resellers verify the authenticity of their purchases while avoiding other problems associated with sneaker trading, such as shipping costs and keeping inventory. 

However, Nike, which filed several patents for digital goods back in October last year, believes StockX’s Vault system is freeriding on the back of its trademarks, brand identity, and associated goodwill. An excerpt from Nike’s filing stated:

“Without Nike’s authorization or approval, StockX is “minting” NFTs that prominently use Nike’s trademarks, marketing those NFTs using Nike’s goodwill, and selling those NFTs at heavily inflated prices to unsuspecting consumers 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.”

The rising market value of the StockX-issued sneaker NFTs, which has overtaken the value of the physical pairs of sneakers they represent, as well as StockX’s move to grant perks to NFT holders, has strengthened Nike’s case against the reselling platform. 

StockX has not yet commented on Nike’s lawsuit, citing a policy against public statements on pending litigation. The sneaker marketplace was valued at $3.8 billion after its most recent funding round in April 2021. 

NFTs exploded in popularity over the latter half of 2021, with countless companies and major brands attempting to cash in on the action. However, copyright and trademark definitions do not usually reference NFTs, resulting in several high-profile disputes hitting U.S. courts. 

In November, Quentin Tarantino announced his plans to release NFTs featuring unseen cuts from Pulp Fiction on Secret Network. In response, Miramax, the company that owns the rights to Pulp Fiction, filed a lawsuit against Tarantino, claiming that the NFTs constituted intellectual property violations and a breach of contract. While Tarantino said he would proceed with the launch, the legality of doing so is still unclear.

Whether Nike will win its lawsuit against StockX remains to be seen. However, as non-fungible tokens continue gaining traction, lawsuits disputing NFTs and intellectual property rights will likely become increasingly common.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Nike Acquires Non-Fungible Sneaker Studio RTFKT

Nike announced today that it has acquired RTFKT, a virtual sneaker design company and a studio for non-fungible tokens. Nike Acquires RTFKT RTFKT was founded in 2020 to create virtual…

Is Time on our Side? The Case for Bitcoin’s Lengthening Cycles

One of the many unique features of BTC is its halving process, which is often accompanied by a bullish movement and preceded by bearish consolidation. Bitcoin’s halving events have been…

Nike Bought RTFKT. Now Its NFTs Are Trading at a Premium

Since Nike announced its acquisiton, the floor price for an RTFKT Clone X avatar passes has jumped to roughly $41,000.  Nike Gives Boost to RTFKT NFTs  Nike’s entry into the…

Tarantino to Proceed with “Pulp Fiction” NFTs Despite Mira…

Quentin Tarantino has announced that he will proceed with the sale of a series of “Pulp Fiction” NFTs this month. Miramax has responded by clarifying that its lawsuit is not…


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *