NFT wars are brewing as Nike takes the online reseller to court over unlicensed NFT sneakers.
Internationally renowned activewear brand Nike is suing the online reseller StockX over unlicensed NFT sneakers and trademark infringement.
As reported on Reuters on Friday, February 4, Nike officially filed a lawsuit against StockX in the New York Federal Court on Thursday. According to Nike, StockX was setting unauthorized images of Nike shoes as non-fungible tokens (NFTs), which would classify as trademark infringement.
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Nike is demanding an undisclosed amount in damages and an official order blocking StockX from selling Nike products. According to Nike, StockX’s trademark infringement could confuse the customers. StockX is a reseller platform that deals in sneakers, handbags, and other consumer goods. Last year, it was valued at $3.8 billion.
According to the 50-page lawsuit, StockX started selling NFTs of Nike sneakers in January this year, stating that the buyers could use the purchase to redeem the physical version of the sneakers in the foreseeable future. So far, the platform has allegedly sold over 500 Nike-branded NFTs.
Nike’s lawsuit states that the unauthorized reselling “inflated prices and murky terms of purchase and ownership,” while negatively impacting the brand’s image and reputation. Nike plans to launch its own NFT collection in collaboration with the art studio RTFKT later this month. RTFKT was acquired by Nike in December 2021.
Nike has been interested in entering the crypto market for a long time, having secured a patent for blockchain-compatible sneakers CryptoKicks back in 2019. As reported by CNBC, Nike has since filed seven trademark applications and has plans to sell virtual products on metaverse.
Issues regarding NFT exploitation and copyright infringement have been on the rise as their popularity grows. Last month, luxury accessories design house Hermes sued artist Mason Rothschild for selling “MetaBirkin” NFTs of the brand’s exclusive Birkin bags.
In November 2021, movie studio Miramax sued director Quentin Tarantino for planning an auction of an NFT related to his 1994 movie Pulp Fiction. Despite the lawsuit, Tarantino sold the “Royale with Cheese” NFT for $1.1 million in January, as reported by BitDegree.
