Nike Takes Legal Action Against StockX's Sneaker NFTs

At the end of last month, StockX made its official debut into the metaverse by introducing Vault NFTs. Essentially, if you buy an edition of a Vault NFT, you are the owner of the corresponding physical item, which will then be secured and stored in StockX's Vault. This is a new way to show authenticity in the sneaker market. However, on Thursday, Nike filed a lawsuit against the resale platform accusing them of using its trademarks without authorisation to sell non-fungible tokens "at heavily inflated prices to unsuspecting consumers."

In the complaint, the Beaverton brand stated that by minting Vault NFTs, StockX are infringing on its trademarks. "Nike did not approve of or authorize StockX’s Nike-branded Vault NFTs. Those unsanctioned products are likely to confuse consumers, create a false association between those products and Nike, and dilute Nike’s famous trademarks."

This lawsuit also brings to attention the significantly inflated prices of StockX's tokens. For example, the Nike Dunk Low "Black" sells for a around £210 on the marketplace, but the NFT version sells for a whopping £600 which is three times more.

Nike has asked StockX to stop all sell and promotion of its NFTs, more specifically, the ones that feature the iconic Swoosh or any other signature marks. The Oregon athletics company also want them to delete the NFTs and pay for any damages suffered.

The sneaker game is changing exponentially by the minute. Nike, for instance, are taking the metaverse head on by establishing the new Nike Virtual Studios division. At the end of last year, they also acquired NFT brand RTFKT. adidas and New Balance have already officially announced their foray into the blockchain space, while most recently, BAPE revealed the (B)APETAVERSE project which includes a total of 10,000 unique NFTs, each one providing owners with access to exclusive content and other opportunities.

What do you think of this news? Was it expected or are you surprised? Let us know what you think, and while you're here, make sure you read The Sole Supplier's guide to buying NFTs!