Nike sues retailer selling NFT sneakers

Sportswear and equipment maker Nike sued StockX, a Detroit-based online sneaker and handbag retailer, in federal court in New York on Thursday (Feb. 3) 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 sought unspecified damages and an order blocking their sales.

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

According to the federal lawsuit, StockX began 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 said. Nike’s lawsuit accuses StockX of selling more than 500 Nike-branded NFTs without permission.

StockX’s “inflated prices and obscure terms of purchase and ownership,” combined with buyers’ doubts about the reality of StockX’s NFTs, “damaged Nike’s business reputation,” according to the lawsuit, the report said. .

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

Related: Nike’s Patented Combination vs. Lululemon’s Mirror Reflects Rising Stakes in Connected Fitness

Nike is also suing clothing retailer Lululemon and home gym company Mirror for patent infringement in US District Court in Manhattan, alleging that several of its patents have been infringed.

Nike asked the court for a jury trial, a court order restraining Lulu from further use of its technology, an admission of willful infringement, treble damages, and reimbursement of all of its legal fees, costs and expenses related to the filing of the complaint.

Read also : Criminals see NFTs as a lucrative target – they could be wrong

Meanwhile, blockchain intelligence form Chainalysis said this week that NFT crime is increasing, but the uniqueness of each NFT could prevent thieves from earning the big bucks they were hoping for by selling the digital assets themselves.

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