On February 3rd, Nike chose to take legal action against sneaker company StockX after the marketplace released NFT versions of Nike shoes. The case will go to court for “trademark infringement or sale of unlicensed non-fungible token sneakers”. Currently, StockX sells actual Nike sneakers on their platform legally. However, Nike is clearly not happy with the NFT sneakers and has decided to go further on a legal basis.
Last month, StockX made its debut into the ‘metaverse’ by introducing Vault NFTs. And with so many big brands entering the metaverse and releasing NFT’s, StockX’s ‘Vault NFTs’ looked to be an innovative idea. The NFTs depicted many Nike shoes which are available on their platform. The NFT’s are tied to physical products which allows users to trade them instantly with lower fees as the shipping costs would be stopped. The corresponding physical item will be secured and stored in StockX’s Vault. (It is also a way to show authenticity in the sneaker market.)
Nike has stated that the NFTs from StockX infringe its trademarks and are likely to confuse customers. They have asked for an unspecified sum in damages and an order to block the sales. The complaint from Nike said that StockX has sold over 558 Nike-branded NFTs up until this point, none of which have been authorised.
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”
Head over to Nike now to see all their new releases, plus get up to 50% off in their sale.