Nike Sues StockX Over Sale of Nike-Branded NFT Vault
Nike has filed a civil lawsuit in the US against Detroit-based online fashion resale platform StockX, alleging that the company illegally used images of its shoes in token offerings.
Nike is suing StockX over the sale of Nike-branded NFT Vault
In a 50-page complaint filed in the U.S. District Court for the Southern District of New York, Nike’s attorneys argued that StockX’s Vault NFT products violated its trademark rights and argued that they caused consumer confusion could cause.
The lawsuit goes further to seek monetary damages as well as a court order preventing StockX from selling NFTs.
Nike-appointed attorneys wrote of StockX’s “appropriate appropriation of Nike’s well-known brands and goodwill fueling its entry into the lucrative NFT and digital collectibles market.” This, the attorneys added, aims to deprive Nike of “Nike’s exclusive right to use the trademark in connection with these new commercial NFTs.”
The lawsuit does not include a compensation figure, but alleges that StockX’s brand has been “diluted” by StockX’s offerings, citing “unfair competition.”
Nike asked the court to “quickly and permanently stop StockX from continuing to sell Nike’s famous Vault NFT brand.”
The attorneys stated that “558 custom-branded Nike Vault NFTs” were listed for sale on the StockX platform.
StockX sells Vault NFT
According to StockX’s own website, its NFT Vault is “backed by a StockX-managed physical element that is tied directly 1:1 across the blockchain.”
As such it declares:
“When the actual item associated with the Vault NFTs is purchased by the owner, the item is removed from the StockX Vault and shipped to the owner. StockX then removes the Vault NFT from the owner’s portfolio and from circulation (i.e., “burns” the Vault NFT).”
The company also claims that its NFT Vault allows buyers to “invest in current culture like never before,” allowing them to own an item “without ever physically owning it” or paying for shipping. . The company also added, “You can sell it without having to ship it to us and with fewer seller fees.”
But Nike’s legal team alleges that consumers “have questioned whether Nike authorized StockX to sell NFT products infringing its trademarks” and asked the company “how does StockX get it?” a license to Sell NFT under the Nike brand.
Nike dived straight into the world of NFT and their own ranges are already being sold in stores
Platforms like OpenSea. In December of last year, the company bought RTFKT, a maker of virtual sneakers and collectibles and shoe-related NFTs.
If Nike succeeds in taking legal action against the platform, other sporting goods brands could follow, as the StockX platform also offers at least one Adidas NFT.
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Important NOTE: All content on the website is for informational purposes only and in no way constitutes investment advice. Your money, the choice is yours.
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Nike Sues StockX Over Sale of Nike-Branded NFT Vault
Nike has filed a civil lawsuit in the US against Detroit-based online fashion resale platform StockX, alleging that the company illegally used images of its shoes in token offerings.
Nike is suing StockX over the sale of Nike-branded NFT Vault
In a 50-page complaint filed in the U.S. District Court for the Southern District of New York, Nike’s attorneys argued that StockX’s Vault NFT products violated its trademark rights and argued that they caused consumer confusion could cause.
The lawsuit goes further to seek monetary damages as well as a court order preventing StockX from selling NFTs.
Nike-appointed attorneys wrote of StockX’s “appropriate appropriation of Nike’s well-known brands and goodwill fueling its entry into the lucrative NFT and digital collectibles market.” This, the attorneys added, aims to deprive Nike of “Nike’s exclusive right to use the trademark in connection with these new commercial NFTs.”
The lawsuit does not include a compensation figure, but alleges that StockX’s brand has been “diluted” by StockX’s offerings, citing “unfair competition.”
Nike asked the court to “quickly and permanently stop StockX from continuing to sell Nike’s famous Vault NFT brand.”
The attorneys stated that “558 custom-branded Nike Vault NFTs” were listed for sale on the StockX platform.
StockX sells Vault NFT
According to StockX’s own website, its NFT Vault is “backed by a StockX-managed physical element that is tied directly 1:1 across the blockchain.”
As such it declares:
“When the actual item associated with the Vault NFTs is purchased by the owner, the item is removed from the StockX Vault and shipped to the owner. StockX then removes the Vault NFT from the owner’s portfolio and from circulation (i.e., “burns” the Vault NFT).”
The company also claims that its NFT Vault allows buyers to “invest in current culture like never before,” allowing them to own an item “without ever physically owning it” or paying for shipping. . The company also added, “You can sell it without having to ship it to us and with fewer seller fees.”
But Nike’s legal team alleges that consumers “have questioned whether Nike authorized StockX to sell NFT products infringing its trademarks” and asked the company “how does StockX get it?” a license to Sell NFT under the Nike brand.
Nike dived straight into the world of NFT and their own ranges are already being sold in stores
Platforms like OpenSea. In December of last year, the company bought RTFKT, a maker of virtual sneakers and collectibles and shoe-related NFTs.
If Nike succeeds in taking legal action against the platform, other sporting goods brands could follow, as the StockX platform also offers at least one Adidas NFT.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Important NOTE: All content on the website is for informational purposes only and in no way constitutes investment advice. Your money, the choice is yours.
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