NFT battles: Nike takes seller of unlicensed NFT sneakers to the court

Published at: Feb. 4, 2022

Popular sneaker maker Nike has started the "licensed NFT" wars by taking an online reseller called StockX to court for trademark infringement or sale of unlicensed nonfungible token (NFT) sneakers.

According to a Reuters report, Nike has filed a lawsuit against the reseller in the New York Federal court demanding an undisclosed amount in damages and a halt of sales on such virtual collectibles. StockX reportedly started selling Nike sneaker NFTs in January and promised buyers they can redeem the real-world version of the sneakers in the near future.

Nike in its 50-page complaint claimed StockX has sold nearly 500 NFT sneakers with the Nike branding which has dented their reputation and legitimacy. The shoemaker brand also alleged the NFT sneakers were being sold at inflated prices with very “murky terms of purchase and ownership.” 

StockX is a popular online reseller estimated to be worth $3.8 billion and the NFT sneakers because of which it is facing the lawsuit is still online. The collection is called ‘The Vault’ comprising of 9 premium Nike sneakers and deals with NFTs tied to their real-world asset.

Related: From art to gaming: The biggest NFT trends of 2021

Nike claimed NFTs are a way for brands to interact with their customers, but some of the players in the market are trying to “usurp the goodwill of some of the most famous trademarks in the world and use those trademarks without authorization to market their virtual products and generate ill-gotten profits.” The shoe-maker is set to launch its own NFTs collection later this month in association with recently acquired art studio RTFKT.

NFTs popularity has made it a primary PR and marketing tool for brands and celebrities. However, as with any popular use case in the decentralized world, NFTs have reached a point of exploitation. Apart from Nike, there have been several other lawsuits around NFTs involving big brands and celebrities. Pulp Fiction’s film production company Miramax sued the director of the film Quentin Tarantino for selling NFTs of the movie, calling it copyright infringement.

Tags
Nft
Law
Retail
Metaverse
Related Posts
Unlocking utility is key for fashion brands launching NFTs in 2022
Nonfungible tokens, or NFTs, have become one of the most discussed markets in the crypto space this year. A recent report from Cointelegraph Research found that NFT sales are aiming for a $17.7 billion record by the end of 2021. This may very well be the case, as a number of mainstream brands have begun launching NFTs. According to recent research from Bain & Company and the online luxury fashion platform Farfetch, digital interactions with consumers are becoming increasingly important for brands. The report specifically states that “digital interaction with peers is on the rise when choosing to purchase a …
Adoption / Jan. 2, 2022
NFT adoption: Tokens take the runway at Metaverse Fashion Week
The Metaverse may be an emerging concept, but the impact that virtual game-like worlds can have on the trillion-dollar retail industry was recently demonstrated during Metaverse Fashion Week (MVFW). This entirely virtual experience was held from March 24–27, 2022, in Decentraland, a decentralized virtual social platform on the Ethereum blockchain. The online event attracted more than 70 brands, artists and designers including big names like Tommy Hilfiger, Estée Lauder, Philipp Plein, Selfridges and Dolce & Gabbana. Gigi Graziosi Casimiro, head of Decentraland’s Metaverse Fashion Week, told Cointelegraph that MVFW is a diverse event aiming to connect physical and digital fashion …
Blockchain / March 29, 2022
Food companies secure trademarks to enter metaverse
A number of food companies have recently begun to position themselves within the Web3 ecosystem by filing trademark applications for the Metaverse, and nonfungible tokens (NFTs). Licensed trademark attorney Mike Kondoudis shared in a tweet that Kraft Foods Group had filed a trademark for its iconic hot dog-shaped Weinermobile on Oct. 12. The filing revealed that the brand plans to expand into NFTs, digital tokens, virtual goods, NFT marketplaces, virtual food, drink, and restaurants. Kraft has applied to trademark the iconic Weinermobile! The October 12 filing claims plans for: NFTs + Digital Tokens NFT Marketplaces Virtual Foods + Drinks + …
Adoption / Oct. 18, 2022
Using blockchain technology to combat retail theft
The retail industry is one of the most important sectors of the United States economy. Unfortunately, the COVID-19 pandemic has left the trillion-dollar retail sector vulnerable to in-store theft. Findings from the National Retail Federation’s 2022 Retail Security Survey show that retail losses from stolen goods increased to $94.5 billion in 2021, up from $90.8 billion in 2020. Some retailers also have to lock away certain products to prevent theft, which may lead to decreased sales due to consumers’ inability to access goods. Retailers look toward blockchain to solve retail theft Given these extreme measures, many innovative retailers have started …
Adoption / Jan. 7, 2023
Keep an eye out for major company NFT trademark filings this year
Crypto proponents would be wise to keep their eyes on nonfungible token (NFT) and metaverse trademark applications this year, which are “reliable signals” of future-use plans. Speaking to Cointelegraph, intellectual property lawyer Michael Kondoudis said while many people may think big corporations are just jumping onto the NFT trend as a novelty, “it is not possible” to register a trademark in the United States with no intention to use it. Despite a relatively low cost for filing an application — ranging from $250 to $350 per class of goods/services — Kondoudis explained when a company submits a trademark application, it …
Adoption / Jan. 26, 2023