{"id":8629,"date":"2022-02-22T01:20:37","date_gmt":"2022-02-22T01:20:37","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/nft\/nike-asks-ny-court-to-block-reseller-stockx-from-selling-nfts-of-its-shoes\/"},"modified":"2022-02-22T01:20:39","modified_gmt":"2022-02-22T01:20:39","slug":"nike-asks-ny-court-to-block-reseller-stockx-from-selling-nfts-of-its-shoes","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/nft\/nike-asks-ny-court-to-block-reseller-stockx-from-selling-nfts-of-its-shoes\/","title":{"rendered":"Nike Asks NY Court to Block Reseller StockX from Selling NFTs of its Shoes"},"content":{"rendered":"
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Source: AdobeStock \/ pavel siamionov<\/figcaption><\/figure>\n

\u00a0<\/p>\n

Nike<\/strong> has filed a civil case in the United States against the Detroit-based online fashion resale platform StockX<\/strong>, claiming that the latter uses unauthorized images of its footwear in non-fungible token (NFT) offerings.<\/p>\n

In a 50-page complaint submitted to the New York Southern District Court, Nike\u2019s lawyers claimed that StockX\u2019s Vault NFT offerings infringe on its trademark rights and claimed that they could cause confusion for consumers.<\/p>\n

The claim went on to demand financial damages as well as a court order that would stop StockX from selling the NFTs.<\/p>\n

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The Nike-appointed lawyers wrote of StockX\u2019s \u201cmisappropriation of Nike\u2019s famous trademarks and goodwill to buoy its entry into the lucrative NFT and digital collectible market.\u201d This, the lawyers added, seeks to deprive Nike \u201cof its exclusive right to use its marks in connection with this new commercial medium [NFTs].\u201d<\/p>\n<\/blockquote>\n

The claim did not set out a figure for compensation, but claimed that its brand had been \u201cdiluted\u201d by StockX\u2019s offerings, citing \u201cunfair competition.\u201d<\/p>\n

It called on the court to \u201cswiftly and permanently stop StockX from continuing to sell Vault NFTs bearing Nike\u2019s famous marks.\u201d<\/p>\n

The lawyers stated that \u201c558 individual Nike-branded Vault NFTs\u201d had been put up for sale on the StockX platform.<\/p>\n

Per StockX\u2019s own website, its Vault NFTs are \u201cbacked by a physical item held in StockX\u2019s custody, tied directly one-to-one via the blockchain.\u201d<\/p>\n

As such, it explains,<\/p>\n

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\u201cIf the physical item associated with Vault NFT[s] is redeemed by the owner, it is removed from the StockX Vault and shipped to the owner. StockX will then remove the Vault NFT from the owner\u2019s portfolio and from circulation (i.e. \u201cburn\u201d the Vault NFT).\u201d<\/p>\n<\/blockquote>\n

The company also states that its Vault NFTs allow shoppers to “invest in current culture like never before,” enabling them to own an item\u00a0“without ever taking possession” of it or paying shipping fees. \u201cPlus,\u201d the firm added, \u201cyou can sell it without having to send it to us and with fewer seller fees.\u201d<\/p>\n

But the Nike legal team claimed that consumers are \u201calready questioning whether Nike authorized StockX to sell its [trademark-]infringing NFT products,\u201d as well as asking the firm \u201chow StockX received\u201d licensing permission to sell NFTs with Nike branding.<\/p>\n

Nike has plunged headfirst into the world of NFTs, and its own ranges are already retailing on platforms such as OpenSea<\/strong>. In December last year, the company bought RTFKT<\/strong>, a maker of virtual sneakers and collectibles, as well as shoe-related NFTs.<\/p>\n

If Nike is successful with its legal move against the platform, other sportswear firms may also follow suit \u2013 the platform also offers at least one Adidas<\/strong> NFT.<\/p>\n

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____<\/p>\n

<\/strong>
– Nike & Microsoft Rush Into Metaverse
– Here’s the ‘Metaverse-Ready Sneakers and Collectibles’ Creator Nike Acquired<\/p>\n

– Prada & Adidas Launch NFTs on Polygon
– Metaverse Trends in 2022: Prepare for More Gaming and New Virtual Experiences with NFTs<\/p>\n

–\u00a0 NFTs in 2022: From Word of the Year to Mainstream Adoption & New Use Cases
– DeFi Trends in 2022: Growing Interest, Regulation & New Roles for DAOs, DEXes, NFTs, and Gaming<\/p>\n<\/p><\/div>\n