Nike Sues StockX Over Unauthorized Sneaker NFTs

Nike Sues StockX Over Unauthorized Sneaker NFTs

Nike is suing StockX in a New York federal court this week, as the colossal online reselling platform has sold NFTs — known as non-fungible tokens — that utilized unauthorized images of Nike shoes.

Nike said StockX’s unauthorized NFTs infringe its trademarks and are likely to confuse consumers. Its lawsuit asked for unspecified money damages, as well as an order to block their sales.

Detroit-based StockX, a platform for reselling sneakers, handbags, collectibles, and other goods, was valued at more than $3.8 billion last year.

Last month, StockX began selling unauthorized NFTs of Nike sneakers, telling buyers they would be able to redeem the tokens for physical versions of the shoes “in the near future.” More than 500 Nike-branded NFTs were sold.

This unauthorized Nike SB Dunk “Chunky Dunky” NFT already has an asking price of $42,000

The lawsuit said complaints about the NFTs’ “inflated prices and murky terms of purchase and ownership” and buyers’ doubts about the legitimacy of StockX’s model have hurt Nike’s business reputation.

Nike said it will release “a number of virtual products” later this month in conjunction with the digital art studio RTFKT, which it acquired in December.

Stay tuned for further developments on the case.

Source: Reuters

Trending Now