Nike has taken legal action against sneaker company StockX after the sneaker marketplace released NFT versions of Nike shoes to go onto their platform. The case will go to court for “trademark infringement or sale of unlicensed non-fungible token sneakers”. StockX sells regular Nike sneakers on their platform perfectly legally. However, Nike has picked up on the new NFT sneakers and decided to go further on a legal basis.
About the Nike vs StockX Lawsuit
Worldwide sneaker giants, Nike sued online resell platform, StockX, in New York federal court on Thursday for selling unauthorised images of Nike shoes as NFTs on their platform.
Nike has stated that the NFTs from StockX infringe its trademarks and are likely to confuse customers. They have also asked for an unspecified sum in damages and an order to block the sales. The complaint from Nike said that StockX has sold over 500 Nike-branded NFTs up until this point.
Within the lawsuit which was made public by Nike yesterday, the Oregon-based company noted RTFKT Studios, the NFT company behind CloneX that was purchased by Nike. Moreover, this was discovered by Twitter user, @TheSleuthCat. They called it “serious alpha” for the future of CloneX.
About StockX Sneaker NFTs
StockX’s ‘Vault NFTs’ of Nike sneakers looked to be an extremely innovative idea from the Detroit based resell platform. The NFTs depicted many Nike shoes which are available on their platform. The company said that the NFTs would be tied to physical products. This would let users trade them instantly with lower fees as the shipping costs would be stopped. Also, the Vault NFTs was minted as ERC-1155 tokens on the Ethereum blockchain.
Upon the release, StockX said: “Vault NFTs will help unlock new trading opportunities, reimagining what is possible when it comes to investing in the current culture on StockX. By bridging the physical and digital worlds, we’re able to provide a more efficient trading experience anchored by lower costs and storage capabilities — a buyer no longer has to wait several days before they can resell a product, and they don’t have to pay the fees associated with multiple legs of shipping and physical authentication. And we’re just getting started. We’re excited about our digital future”