Nike Sues an Online Retailer for Selling Unauthorised Nike Shoe NFTs

Nike has filed a lawsuit against an online reseller who is selling non-fungible tokens with unauthorised Nike shoe images (NFTs). Nike claims that “unsanctioned products are likely to confuse consumers, create a false association between those products and Nike, and dilute Nike’s famous trademarks.”

 

Nike sues an online retailer for NFT sales

Nike sued online reseller Stockx in federal court in New York last week for selling non-fungible tokens (NFTs) based on unauthorised images of Nike shoes.

Nike revealed that Detroit-based Stockx, which was valued at more than $3.8 billion last year, began selling NFTs last month, and that the reseller has sold over 500 unauthorised Nike-branded NFTs.

Stockx told buyers that they would be able to redeem the tokens for physical versions of the shoes “in the near future,” according to the sneaker giant.

Nike claims that Stockx is infringing on and diluting its trademarks by minting “Vault” NFTs based mostly on popular Nike sneakers. Nike did not approve or authorise Stockx’s Nike-branded Vault NFTs, according to the complaint… Unauthorised products are likely to confuse consumers, create a false association between those products and Nike, and dilute Nike’s well-known trademarks.

 

According to the lawsuit, Nike’s business reputation has suffered as a result of complaints about the Stockx NFTs’ “inflated prices and murky terms of purchase and ownership,” as well as buyers’ doubts about the legitimacy of Stockx’s products.

 

Meanwhile, Nike is gearing up to launch its own virtual products later this month in collaboration with the digital art studio RTFKT, which it purchased in December.

The lawsuit seeks monetary damages as well as an injunction prohibiting Stockx from selling or promoting its Nike-branded Vault NFTs. It also desires that the resale marketplace destroy the unauthorised NFTs.

 

The number of lawsuits involving non-traditional financial instruments (NFTs) is increasing. In November of last year, Miramax sued director Quentin Tarantino over his plans to auction off NFTs related to the 1994 film “Pulp Fiction.” The film was directed by Tarantino, but it was distributed by the studio. Hermes, the French luxury design house, sued artist Mason Rothschild last month over his “Metabirkin” NFTs of its Birkin bags.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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