Popular sneaker maker Nike launched a “licensed NFT” war by suing online reseller StockX for trademark infringement or selling sneakers with unlicensed non-fungible tokens (NFTs).
According to a Reuters report, Nike has filed a lawsuit against the reseller in a New York federal court seeking an undisclosed amount of damages and an end to sales of such virtual collectibles. StockX reportedly started selling NFT Nike sneakers in January and promised shoppers that they could redeem the real version of the sneakers in the near future.
Nike claims in a 50-page complaint that StockX sold around 500 Nike-branded NFT sneakers, damaging their reputation and legitimacy. The shoe brand also claimed that the NFT sneakers were being sold at inflated prices with very “unclear terms of purchase and ownership.”
StockX is a popular online reseller valued at $3.8 billion and the NFT sneakers it is being sued for are still online. The collection is called The Vault and consists of 9 premium NFT themed Nike sneakers tied to their real assets.
Related: From Art to Games: The Biggest NFT Trends of 2021
Nike stated that NFTs are a way for brands to interact with their customers, but some market players are trying to “usurp the goodwill of some of the world’s most famous trademarks and use those trademarks without permission to sell their virtual products.” and earn ill-gotten gains.” The shoe maker is set to release its own NFT collection later this month in partnership with newly acquired art studio RTFKT.
The popularity of the NFT has made it the go-to PR and marketing tool for brands and celebrities. However, as with any popular use case in the decentralized world, NFTs have reached the point of exploitation. In addition to Nike, there have been several other lawsuits surrounding the NFT involving major brands and celebrities. Pulp Fiction film company Miramax is suing the film’s director Quentin Tarantino for selling the NFT film, citing copyright infringement.
Popular sneaker maker Nike launched a “licensed NFT” war by suing online reseller StockX for trademark infringement or selling sneakers with unlicensed non-fungible tokens (NFTs).
According to a Reuters report, Nike has filed a lawsuit against the reseller in a New York federal court seeking an undisclosed amount of damages and an end to sales of such virtual collectibles. StockX reportedly started selling NFT Nike sneakers in January and promised shoppers that they could redeem the real version of the sneakers in the near future.
Nike claims in a 50-page complaint that StockX sold around 500 Nike-branded NFT sneakers, damaging their reputation and legitimacy. The shoe brand also claimed that the NFT sneakers were being sold at inflated prices with very “unclear terms of purchase and ownership.”
StockX is a popular online reseller valued at $3.8 billion and the NFT sneakers it is being sued for are still online. The collection is called The Vault and consists of 9 premium NFT themed Nike sneakers tied to their real assets.
Related: From Art to Games: The Biggest NFT Trends of 2021
Nike stated that NFTs are a way for brands to interact with their customers, but some market players are trying to “usurp the goodwill of some of the world’s most famous trademarks and use those trademarks without permission to sell their virtual products.” and earn ill-gotten gains.” The shoe maker is set to release its own NFT collection later this month in partnership with newly acquired art studio RTFKT.
The popularity of the NFT has made it the go-to PR and marketing tool for brands and celebrities. However, as with any popular use case in the decentralized world, NFTs have reached the point of exploitation. In addition to Nike, there have been several other lawsuits surrounding the NFT involving major brands and celebrities. Pulp Fiction film company Miramax is suing the film’s director Quentin Tarantino for selling the NFT film, citing copyright infringement.
