Nike Asks NY Court to Block Reseller StockX from Selling NFTs of its Shoes
Nike has filed a civil case in the United States against the Detroit-based online fashion resale platform StockX, claiming that the latter uses unauthorized images of its footwear in non-fungible token (NFT) offerings.
In a 50-page complaint submitted to the New York Southern District Court, Nike’s lawyers claimed that StockX’s Vault NFT offerings infringe on its trademark rights and claimed that they could cause confusion for consumers.
The claim went on to demand financial damages as well as a court order that would stop StockX from selling the NFTs.
The Nike-appointed lawyers wrote of StockX’s “misappropriation of Nike’s famous trademarks and goodwill to buoy its entry into the lucrative NFT and digital collectible market.” This, the lawyers added, seeks to deprive Nike “of its exclusive right to use its marks in connection with this new commercial medium [NFTs].”
The claim did not set out a figure for compensation, but claimed that its brand had been “diluted” by StockX’s offerings, citing “unfair competition.”
It called on the court to “swiftly and permanently stop StockX from continuing to sell Vault NFTs bearing Nike’s famous marks.”
The lawyers stated that “558 individual Nike-branded Vault NFTs” had been put up for sale on the StockX platform.
Per StockX’s own website, its Vault NFTs are “backed by a physical item held in StockX’s custody, tied directly one-to-one via the blockchain.”
As such, it explains,
“If the physical item associated with Vault NFT[s] is redeemed by the owner, it is removed from the StockX Vault and shipped to the owner. StockX will then remove the Vault NFT from the owner’s portfolio and from circulation (i.e. “burn” the Vault NFT).”
The company also states that its Vault NFTs allow shoppers to
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