Nike sues unlicensed NFT sneaker seller in court

Popular sneaker manufacturer Nike has started the “licensed NFT” war, taking an online reseller called StockX to court for trademark infringement or unlicensed sales of sneakers in non-fungible token (NFT) format.

According to a statement from Reuters, Nike has filed a lawsuit against the reseller in a federal court in New York, seeking an undisclosed amount of damages and a halt to sales of these digital collectibles. StockX reportedly started selling Nike sneaker NFTs in January, promising buyers that they would be able to get their hands on the physical version of the sneakers in the near future.

Nike claimed in its 50-page complaint that StockX sold nearly 500 Nike-branded NFT shoes, damaging its reputation and legitimacy. The shoe brand also claimed that the NFT shoes were being sold at inflated prices with very “dodgy” terms of purchase and ownership.

Nike sues unlicensed NFT sneaker seller in court
Nike sues unlicensed NFT sneaker seller in court

StockX is a popular online retailer worth an estimated $3.8 billion and its controversial NFT sneakers are still for sale. Dubbed The Vault, the collection features nine high-end Nike sneaker and NFT offerings tied to their real-world assets.

Nike claimed that NFTs are a way for brands to interact with their customers, but some of the market players are trying to “snatch the goodwill of some of the world’s most iconic brands and use them without permission to market their virtual goods.” .” and to generate ill-gotten gains”. The shoemaker will launch his own NFT collection later this month in partnership with RTFKT, a recently acquired NFT studio.

The popularity of NFTs has made them a primary PR and marketing tool for brands and celebrities. However, as with every popular use case in the decentralized world, NFTs have reached a point of exploitation. Aside from Nike, there have been several other conflicts surrounding NFTs involving big brands and celebrities. The film production company pulp FictionMiramax sued the film’s director, Quentin Tarantino, for selling NFTs of the film, calling it copyright infringement.

Similar Posts