Nike Files a Lawsuit Against a Retailer That Sells Sneaker NFTs Because of Virtual Shoes

Nike sued online reseller StockX in federal appeals court in Nyc on Thursday for selling unlicensed photos of Nike sneakers, marking the latest case over non-fungible tokens, or digital assets.

StockX’s NFTs, according to Nike, infringe on its trademarks and are likely to mislead customers. Its complaint sought specific monetary damages as well as an injunction against its sale.

Last year, StockX, a resale marketplace for sneakers, handbags, and other items located in Detroit, was valued at much more than $3.8 billion.

A corporate spokesman, as well as Nike and its attorneys, did not reply to a request for comment.

Last month, StockX started selling unlicensed Nike NFTs, promising that customers will be able to redeem the tokens for actual copies of the shoes “shortly.”

According to the lawsuit, StockX sold over 500 Nike-branded NFTs.

Complaints about the NFTs’ “inflated costs and unclear conditions of purchase and ownership,” as well as customers’ reservations about StockX’s strategy, according to the lawsuit, have harmed Nike’s commercial reputation.

Nike has announced that it will unveil “a variety of virtual items” later this month in collaboration with RTFKT, a digital creative studio it purchased in December.

NFTs have risen significantly in recent years, and litigation against them has begun to appear in U.S. courts. In Nov, Miramax filed a lawsuit against filmmaker Quentin Tarantino for his plans to sell NFTs from the 1994 picture “Pulp Fiction,” which he directed and for which the firm released.

Hermes sued artist Mason Rothschild last month for his “MetaBirkin” NFTs for Hermes’ Birkin totes.