StockX is in a legal battle with Nike over alleged counterfeit NFTs
StockX is counterattacking Nike after the popular sports brand sued the online marketplace for selling counterfeit NFT sneakers. In response to Nike’s accusation, StockX defended its stance by saying that Nike had praised the company earlier and sought collaborations.
Another counter-argument by StockX stated that Nike communicated confidence in the marketplace authentication process and invited StockX to join an anti-counterfeiting counsel in connection with the US Department of Homeland Security. In the past, Nike had never raised concerns about StockX authentication processes.
StockX, an online marketplace for limited-edition sneakers based in Detroit, announced its Vault NFT collection in January. The NFTs are investments tied to physical products that provide utility to their owners. Vault NFTs can be redeemed as physical items or traded in their digital forms.
“Nike’s recent allegations lack merit, demonstrate a lack of understanding of the modern marketplace, and display anticompetitive behavior that will stifle the secondary market and hurt consumers. We look forward to defending our reputation and understanding why Nike, which once sought to collaborate in combatting counterfeits, now seeks to undermine StockX’s business model,” StockX CEO Scott Cutler said.
In February, Nike complained about obtaining dubious sneaker NFTs through StockX. In May, the brand sued StockX for releasing counterfeit NFT sneakers. Nike claimed that StockX’s shoes weren’t authentic, despite the company’s “verified authentic” mark, and argued against the StockX NFT collection as a trademark infringement. The violation, according to Nike, could cause confusion for customers.
Nike began selling footwear NFTs in 2021, making millions of dollars in profit. The brand is also getting ready to enter the Metaverse.
StockX is a reseller, not a producer, of street fashion items. Thus, should they have the right to sell other brands’ sneakers as NFTs? This legal case questions how the NFT resale market determines trademark violations.
Read related posts:
- Nike and RTFKT to Release Virtual Sneakers
- RTFKT tease upcoming apparel collection and IRL events
- SoleSavy Announce Sneaker NFTs
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on [email protected].
More articlesAgne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on [email protected].
