Nike Launches Lawsuit Against StockX Over Unauthorized Sneaker NFTs
Nike has filed a lawsuit against online retailer StockX for retailing virtual sneakers it has no association with, alleging that the resale site infringed on its trademarks with the non-fungible tokens.
According to Input, the platform first unveiled its NFTs two weeks ago, comprising nine virtual sneakers, eight of which were from Nike’s collection. More than 500 have been sold since.
The prices of the digital assets were higher than those of the actual shoes, though owners would eventually be able to redeem the real-life sneakers.
It appears the sporting goods giant isn’t too pleased by StockX’s attempt at marketing its designs, accusing the site of “blatantly freeriding, almost exclusively, on the back of Nike’s famous trademarks and associated goodwill.”
Furthermore, Nike believes that the “inflated” prices of the tokens, and its “murky terms of purchase and ownership,” could damage the brand’s reputation in the long-term.
For example, as per Complex, a black and white pair of Nike Dunk Low goes for an average of US$282 in the real-life resale market, while its NFT version is selling for nearly three times more at US$809.
In addition, the suit has collated social media responses questioning Nike’s involvement in the project as proof that some fans are buying into the collection under the impression that it’s an official collaboration.
With the brand recently establishing its own Nike Virtual Studios and acquiring NFT maker RTFKT, it certainly doesn’t want anyone else releasing tokens under its name while it prepares to unveil virtual products of its own.
The lawsuit is asking for StockX to be prohibited from selling or promoting the NFTs, and wants the site to permanently destroy them.
