Nike Suing Retailer Selling Sneaker NFTs

Athletic apparel and equipment maker Nike on Thursday (Feb. 3) sued Detroit-based online sneaker and handbag reseller StockX in New York federal court for selling unauthorized images of Nike shoes, the latest lawsuit related to non-fungible tokens (NFTs), according to a Reuters report.

StockX’s NFTs violate Nike’s trademarks and are likely to confuse consumers, according to the federal lawsuit, in which the company asked for unspecified money damages and an order blocking their sales.

StockX, which was valued at $3.8 billion last year, didn’t respond to Reuters’ requests for comment, nor did Nike or its lawyers.

According to the federal lawsuit, StockX started selling unauthorized NFTs of Nike’s sneakers, telling buyers they could redeem the tokens for physical versions of the shoes “in the near future,” the report says. Nike’s lawsuit charges StockX with selling more than 500 Nike-branded NFTs without permission.

StockX’s “inflated prices and murky terms of purchase and ownership,” combined with buyers’ doubts about whether StockX’s NFT are real “have hurt Nike’s business reputation,” according to the lawsuit, the report says.

Nike plans to release “a number of virtual products” through digital art studio RTFKT, which it acquired in December.

Related: Nike’s Patent Suit vs Lululemon’s Mirror Reflects Rising Stakes in Connected Fitness

Nike is also suing apparel retailer Lululemon and home gym company Mirror for patent infringement in U.S. District Court in Manhattan, alleging that several of its patents had been violated.

Nike asked the court for a jury trial, a court order to stop Lulu from further use of its tech, an admission of willful violation, triple damages as well as reimbursement for all of its legal fees, costs and expenses related to filing the suit.

Also read: Criminals See NFTs as a Lucrative Target — They May Be Wrong

Meanwhile, blockchain intelligence form Chainalysis said this week that NFT crime is growing, but the uniqueness of each NFT could keep thieves from making the big bucks they hoped for when selling the digital assets on their own.