Sneaker Giant Nike sues online retailer for selling unauthorized Nike shoe NFTs – Featured Bitcoin News

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Nike has filed a lawsuit against an online retailer using images of unauthorized Nike shoes in non-fungible tokens (NFTs). “These unauthorized products are likely to confuse consumers, create a false association between these products and Nike, and dilute famous Nike brands,” Nike said.

Nike sues online retailer over NFT sales

Sneaker giant Nike filed a lawsuit against online retailer Stockx in federal court in New York last week for selling non-fungible tokens (NFTs) using unauthorized images of Nike shoes.

Detroit-based Stockx, valued at more than $3.8 billion last year, began selling NFTs last month, Nike detailed, adding that the retailer has sold more than 500 unauthorized Nike-branded NFTs. .

The sneaker giant further noted that Stockx had told buyers they could redeem the tokens for physical versions of the shoes “in the near future.”

Nike claims that by creating “Vault” NFTs based primarily on popular Nike sneakers, Stockx is infringing and diluting its trademarks. According to the complaint:

Nike has not endorsed or authorized Stockx’s Nike-branded NFT Vaults…These unauthorized products are likely to confuse consumers, create a false association between these products and Nike, and dilute Nike’s famous trademarks .

The lawsuit claims that complaints about “inflated prices and obscure terms of purchase and ownership” of Stockx NFTs and buyers’ doubts about the legitimacy of Stockx products damaged Nike’s business reputation.

Meanwhile, Nike is gearing up to release its own virtual merchandise later this month in collaboration with digital art studio RTFKT, which it acquired in December.

The lawsuit seeks damages and an order prohibiting Stockx from selling or promoting its Vault NFTs that use Nike trademarks. He also wants the resale market to destroy unauthorized NFTs.

The number of lawsuits involving NFTs is on the rise. Miramax sued director Quentin Tarantino in November last year over his intention to auction off NFTs related to the 1994 film ‘Pulp Fiction’. Tarantino directed the film but the studio distributed it. Last month, French luxury design company Hermes sued artist Mason Rothschild over his “Metabirkin” NFTs from his Birkin bags.

Keywords in this story

birkin bags, hermes, nft, nft lawsuit, nft sales, nike, nike lawsuit, nike sneakers, pulp fiction, quentin tarantino, stockx, unauthorized nft, unauthorized sales

What do you think of Nike’s lawsuit against the retailer for NFT sales? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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