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Nike is suing sneaker exchange StockX, alleging that it used its logo and brand to create and advertise NFTs.
StockX uses the stock market’s mechanics to provide purchasers with transparent access to in-demand goods. Physical things that trade on the business’s platform are a new alternative asset class similar to NFTs, according to the company. Which is a mainstay of online fashion and the latest sports and streetwear. Every Vault NFT edition is serialized to a product that has been verified as a security.
Nike, which just bought RTFKT, a virtual sneaker firm, is tackling this principle.
“There is no logical justification for StockX to show Nike’s trademarks on the Vault NFT and on the StockX product page since the Vault NFT is only to operate as a “digital receipt” for a physical Nike sneaker. This is due to the fact that when a customer buys Nike sneakers on the StockX marketplace, they will receive a paper receipt from StockX with the delivery.
Unlike a Vault NFT, this paper receipt clearly features StockX’s own logo. Moreover, only uses Nike’s name in connection with the shoe purchased. Yet it nevertheless manages to act as a receipt for that Nike sneaker, according to information and belief.”
As a result, Nike is requesting that the court “order StockX to deliver to Nike for destruction all Vault NFTs, associated footwear, digital files, packaging, printed graphics, promotional materials, business cards, signs, labels, advertisements, flyers, circulars, and any other items in its possession, custody, or control bearing Nike’s claimed marks, any marks substantially indistinguishable therefrom, or confusingly similar marks.”
Nike also seeks damages in the complaint filed in federal court in New York. StockX did not respond to a request for comment right away.
The rise in popularity and value of digital items, particularly NFTs, has become a nuisance for lawyers. Experts predict that Nike’s lawsuit will put intellectual property rights to the test.