Nike, a popular manufacturer of sneakers, has reportedly filed a lawsuit against StockX on Thursday, Feb. 3 in a federal court in New York. The Oregon-based corporation said that the online reseller was using its trademarks without authorization for marketing non-fungible tokens (NFTs).
Nike on StockX Lawsuit
According to a report by Reuter on Friday, Feb. 4, the sneaker giant complained that StockX has "diluted" its trademarks which might lead to the confusion of the buyers.
With that, Nike clearly indicated that it would not approve StockX of authorizing its own Vault NFTs under its brand. Aside from confusing the consumers as written in the complaint, a "false association" of the mixed products might emerge, as well, per Complex.
Regarding the lawsuit, the American corporation did not give a response about it. It only cited a policy against public statements for the recent legal action that it had taken.
On the other hand, StockX has no answer about the lawsuit filed against it. In 2021, the Detroit reselling platform for shoes, and other items were reportedly sitting at over $3.8 billion.
Just last month, the issue arose when Nike spotted StockX's activity of marketing the unauthorized sneaker NFTs. To add, the reseller told the consumers that they could redeem the non-fungible tokens for their bought sneakers in the near future, according to a story from the same source.
On top of that, the news site added that StockX managed to sell more than 500 NFTs under the Nike trademark. Apparently, this has put the two firms into an uncomfortable position in the market.
The lawsuit indicated that the buyers started to be hesitant over the authenticity of the sneakers model from StockX. This further bore an implication to the shoe company which eventually damaged its reputation in the business.
Related Article: Nike Has Filed Trademark Applications as it Prepares to Enter the Metaverse
Nike to Release NFTs With RTFKT
A similar report from Reuters noted that Nike will be unveiling a "number of virtual products" in late February. The decision came following its successful acquisition of metaverse studio RTFKT last December 2021, per Tech Times.
The said platform has previously established ties with Jeff Staple, Lexus, and other companies and popular personalities around the world.
At that time, Adidas was beginning to explore the metaverse space following its purchase of a Bored Ape Yacht Club #8774 NFT which cost $156,000 or 46 ETH during that period.
After the transaction, the footwear giant reportedly changed its profile picture. The people thought that Adidas was secretly getting into the metaverse with left-and-right NFT purchases.
Tech Times also added in the report that the sneakers company had bought 13 BAYC NFTs from various sellers. This hinted that it has already obtained tokens from other creators.
In another NFT venture, Adidas collaborated with popular NFT brands such as Punks Comic, Bored Ape Yacht Club, and token investor Gmoney.
Written by Joseph Henry
