After Nike filed a lawsuit against StockX over the latter’s sneaker NFTs in February, the resale market is responding today with a new filing in the Southern District of New York.
In the response, which is accompanied by an abbreviated version on the StockX news site, the Detroit-based company calls Nike’s lawsuit a “baseless and misleading attempt to interfere with the application of a new technology in the increasingly popular and legal secondary market for the sale of its sneakers and other goods, he argues that Nike’s claims lack merit and disregard already established trademark laws.
StockX emphasizes that its NFT Vaults are not virtual products or so-called digital sneakers, but rather tokens linked to products already authenticated in its warehouse. According to StockX, this offers users the advantage of bypassing the sometimes long delay in obtaining a verified pair. The response states that NFTs themselves have no intrinsic value and cannot be traded separately from their associated physical item.
“The benefit of taking ownership of the Vault NFT…is that the owner can complete a future transaction without incurring transaction costs, delays, or risk of damage or loss associated with shipping physical sneakers to StockX and then to end recipients”, the filing reads. In its response on its website, StockX also touts the seemingly reduced environmental impact of repeat shipments allowed by NFTs.
StockX says it has released 11 Vault NFT sneakers so far from brands including Nike, Adidas and Puma. Styles were chosen because they were top-selling products with enough physical product sizes available.
The resale giant says NFTs are no different from product images used by e-commerce websites to sell sneakers and other goods.
“Using NFTs to digitally track ownership of physical products is not only legal, but also increases efficiency and reduces costs for consumers, promotes sustainability, and should not be disrupted,” StockX says.
Nike did not immediately respond to a request for comment.