Nike Sues StockX Over Selling Unauthorized NFTs
Sportswear giant, Nike, has filed a lawsuit against digital resale marketplace, StockX, for the use of authorized Nike non-fungible tokens (NFTs).
In the lawsuit, filed on February 3, 2022, in a federal court, Nike claims that StockX is “minting” NFTs that prominently feature the company’s trademarks. Furthermore, Nike asserts that these marketed NFTs capitalize on Nike’s goodwill and are being sold at heavily inflated prices to unsuspecting consumers. This is all allegedly being done without the shoe brand’s authorization.
Nike is now looking to the court to block the digital resale marketplace from making any additional non-fungible tokens featuring the brand. Nike also wants existing NFTs to be destroyed and be paid monetary damages.
Nike’s effort to block the sale comes at a time when brands, retailers, and celebrities are jumping into the NFT business to cash in on the trend. Just this week, John Roger Stephens, better known as John Legend, has teamed up with Our Happy Company to launch a social platform that aims to enable creators to be discovered, monetize their work and engage with fans through NFTs.
The move also comes at a time where the purchase of an NFT is also seemingly the new flex. It’s basically the new iced-out watch or chain. For one, Grammy award-winning artist, Justin Bieber, entered the world of NFTs last month by purchasing Bored Ape #3001 NFT, paying 300% higher than Bored Ape Yacht Club’s (BAYC) floor price.
While Nike has not offered up its own NFT offering, the sportswear giant has certainly taken steps towards reserving its seat within the newfound space.
In November 2021, Nike looked to trademark various virtual products in the U.S. as consumer interest in digital products continued to rise. The company filed four requests with the U.S. Patent and Trademark Office to protect its “downloadable virtual goods” and other related services for entertainment and retail store environments.
As the year came to a close, Nike acquired digital sneaker and fashion collectibles site, RTFKT — marking its first foray into the metaverse.
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