StockX and Nike row continues as resale market slams shoemaker over false shoe claims

0

Nike previously accused StockX, a marketplace for reselling various products, of selling fake sneakers, and now it’s hitting back at the shoemaking giant. The company responded to the allegations by pointing out that it has anti-counterfeiting measures to prevent the sale of counterfeit items in its store.

Nike claimed that StockX allowed the sale of counterfeit versions of its sneakers, but the latter denied it. He also said that Nike even praised the StockX store during their collaboration.

StockX’s response was filed Monday, June 6, in US District Court in New York. A draft of the court filing was also seen by CNBC. Part of the draft reads: “In the past, Nike has sought to collaborate with StockX and communicated its confidence in the StockX authentication process.”

StockX and Nike are now officially entering a legal battle that originally began over a dispute over non-fungible tokens or NFTs. It was the latter who first filed a complaint against the former in February. The Oregon-based sneaker and sportswear maker sued the resale market for the sale of NFTs containing Nike shoes.

Nike said StockX infringes on its trademarks via NFTs, which could also mislead customers. Nike was also preparing to enter the metaverse realm around this time and began selling its own non-fungible tokens earlier this year.

The footwear giant explained that customers may confuse its NFTs with those of StockX. In response, StockX said it only uses these NFTs to authenticate products. Based on this complaint, Nike amended its lawsuit against StockX to include the alleged sale of counterfeit Nike shoes.

The shoe company said its latest claim stemmed from the fact that it was able to purchase four pairs of Nikes from StockX, and they were counterfeit. It was further alleged that one of the pairs even matched a StockX NFT that was supposed to authenticate the product.

“Nike’s recent allegations lack merit, demonstrate a lack of understanding of the modern marketplace, and display anti-competitive behavior that will stifle the secondary market and harm consumers,” StockX chief executive Scott Cutler said in a statement. “We look forward to defending our reputation and understanding why Nike, which once sought to collaborate in the fight against counterfeits, is now seeking to undermine StockX’s business model.”

Share.

Comments are closed.