Nike sues online reseller StockX over unauthorised NFTs sale

Nike has filed a 50-page complaint against footwear and apparel marketplace StockX in New York federal court on Thursday, marking the latest lawsuit over NFTs (non-fungible tokens).

The sportswear giant alleged that StockX infringed on its trademark with the offering of NFTs tied to images and physical versions of Nike-branded footwear. Nike also claimed that the online reseller has "inflated prices and issued murky terms of purchase and ownership, confusing consumers, creating a false association between those products and Nike, and diluting the brand's famous trademarks."

The allegation refers to the "100% authentic" Nike-related NFTs launched by StockX last month, and subsequent sale of "558 individual Nike-branded Vault NFTs" to date. The drop led to consumers questioning whether Nike authorised StockX to sell its infringing NFT products, and asking how the company received "the licensing to sell NFTs with Nike branding."

Nike asserted that NFTs, and the metaverse more broadly, have become "a virtual playground for infringers to usurp the goodwill of some of the most famous trademarks in the world and use those trademarks without authorisation to market their virtual products and generate ill-gotten profits."

The company will point to the metaverse-specific trademarks for names, symbols and phrases it filed in October 2021 "for use online and in online virtual worlds" in its complaint.

Last month, digital creator Mason Rothschild received a cease and desist letter from Hermés, whose Birkins bags inspired his MetaBirkin and Baby Birkin NFTs. The French luxury house has since filed a trademark infringement against Rothschild for his unauthorised used of the Birkin trademark, with the outcome possibly setting a new legal precedent for the fashion and art industry.