Nike, a popular sneaker manufacturer, reportedly filed a lawsuit against StockX on Thursday, February 3, in federal court in New York. The Oregon-based company said the online retailer was using its trademarks without permission to market non-fungible tokens (NFTs).
Nike on the StockX lawsuit
(Photo: Joe Raedle/Getty Images)
According to a report from Reuters on Friday, February 4, the sneaker giant complained that StockX had “watered down” its brands, which could confuse buyers.
With that, Nike made it clear that it would not approve of StockX licensing its own NFT Vault under its brand. In addition to confusing consumers as stated in the complaint, a “false association” of the mixed products could also emerge, per complex.
Regarding the lawsuit, the American company did not give an answer on this subject. He only cited a policy against public statements for the recent legal action he had taken.
In contrast, StockX has no response regarding the lawsuit filed against it. In 2021, Detroit’s shoe and other merchandise resale platform was worth more than $3.8 billion.
Last month, the issue arose when Nike spotted StockX’s activity of marketing unauthorized sneaker NFTs. To add, the retailer told consumers that they could redeem the non-fungible tokens for their purchased sneakers in the near future, according to a story from the same source.
In addition to this, the news site added that StockX managed to sell over 500 NFTs under the Nike brand. Apparently, this put both companies in an awkward position in the market.
The lawsuit indicated that buyers were beginning to doubt the authenticity of StockX’s sneaker model. This had an additional implication for the shoe company, which ultimately damaged its reputation in the industry.
Related Article: Nike Filed Trademark Applications As It Prepares To Enter The Metaverse
Nike will release NFTs with RTFXT
A similar report from Reuters noted that Nike will unveil a “number of virtual products” in late February. The move came following its successful acquisition of metaverse studio RTFKT in December 2021, per Tech Times.
The said platform has already established links with Jeff Staple, Lexus and other popular companies and personalities around the world.
Around this time, Adidas was beginning to explore the metaverse space following its purchase of a Bored Ape Yacht Club #8774 NFT which cost $156,000 or 46 ETH during this time.
After the transaction, the shoe giant reportedly changed its profile picture. People thought Adidas was secretly entering the metaverse with left and right NFT purchases.
Tech Times also added in the report that the sneaker company purchased 13 NFT BAYCs from various sellers. This hinted that he has already obtained tokens from other creators.
In another NFT venture, Adidas has collaborated with popular NFT brands such as Punks Comic, Bored Ape Yacht Club, and token investor Gmoney.