NFTs by StockX Now Being Sued by Nike
Learn about how Nike's latest lawsuit impacts the future of NFTs in the sneaker world.
As NFTs continue to grow in every division of the market, we’re starting to see some of the potential downfalls of the vast digital metaverse. As it relates to sneakerheads, Nike is now suing StockX over unauthorized NFT sales of Nike’s sneakers. Keep reading to learn what it means for the future of sneaker NFTs.
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What’s Nike Suing For?
On February 3rd Nike filed a lawsuit against Detroit-based sneaker company StockX over the unauthorized selling of digital assets. Nike’s case is based on copyright violations and the idea that it can confuse customers.
The complaint that Nike filed says that 558 NFTs with Nike branding have been sold by StockX.
Nike’s lawsuit says that over 50% of the StockX NFT ‘Vault’ are sneakers that Nike themselves have trademarked. Nike also believes that customers will think the NFTs that StockX is selling are authorized by Nike, which they currently are not.
Nike has already said that they will be releasing a plethora of digital products in the future after they purchased RTFKT studios in December of 2021.
Example of StockX selling Nike branded NFTs
Below is one of many sneakers that StockX released as NFTs with Nike branding.
What Does This Mean?
While we don’t yet know the outcome of the lawsuit, we can expect Nike to retain their digital trademarks and possibly come to an agreement with StockX. This is purely hypothetical and no evidence points in a direction yet.
What this really means is that companies are serious about NFTs and the metaverse. For Nike to file what is probably a multi-million dollar lawsuit (real number not disclosed), they have to be pretty invested in the space.
Powerhouses like StockX and Nike understand that digital assets are the future for their companies, and they want to do everything in their power to protect themselves.
What’s interesting is that recently we’ve seen examples of other big brands suing over unauthorized metaverse sales. The most prominent example was earlier in 2022 when Hermès sued artist Mason Rothschild over NFTs.
So this idea of suing over digital assets is new, but not necessarily rare. We will see more and more of it as bigger brands start to adapt to this new future.
We get it, it’s confusing. That’s why we’re here! We’ve started pushing out more articles that have to do with NFTs and the metaverse, to help you stay prepared.
More information about the Metaverse reselling will be coming soon! Stay tuned so you are always prepared and equipped with the knowledge to continue success in this game!
Make sure to check out our HypeMaster Playbook to learn about how you can capitalize on this billion-dollar market and set yourself up for success.
What are NFTs?
An NFT, which stands for a non-fungible token, is a unique unit of data employing technology that allows digital content—from videos to songs to images—to become logged and authenticated on cryptocurrency blockchains, primarily Ethereum.
Does Nike own the Swoosh?
The Swoosh has appeared alongside the trademark “Just Do It” since 1988. Together, these two make up the core of Nike’s brand, and has been the face of the company, with many high-profile athletes and sports teams around the world sporting the logos.
What is StockX?
Founded in 2015, StockX is an online marketplace for buying and selling sneakers, streetwear, watches, and designer handbags. The website acts as a middleman between buyers and sellers, making otherwise potentially shady resale market transactions safe and secure.