Nike Sues Online Retailer For Selling Unauthorized NFTs Shoes – Nike has sued an online reseller for selling non-fungible coins with unauthorized Nike shoe designs (NFTs). “Those unapproved products are likely to confuse customers, create a false relationship between them and Nike, and weaken Nike’s well-known trademarks,” Nike claims.
Last week, Nike filed a federal lawsuit in New York against online retailer Stockx for selling non-fungible tokens (NFTs) based on illegal pictures of Nike shoes.
Last month, Stockx, a Detroit-based retailer valued at over $3.8 billion last year, began selling NFTs, according to Nike, who added that the reseller has sold over 500 unlicensed Nike-branded NFTs.
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Stockx assured customers that they would be able to exchange the tokens for real copies of the sneakers “in the near future,” according to the footwear company.
Nike argues that Stockx is infringing on and diluting its trademarks by minting “Vault” NFTs based largely on popular Nike footwear.
Stockx’s Nike-branded Vault NFTs were neither approved nor authorized by Nike. Customers are likely to be confused by these unauthorized products, which will create a misleading connection between them and Nike and dilute the brand’s well-known trademarks.
Online Retailer For Selling Unauthorized Nike Shoes NFTs – Complaints about the Stockx NFTs’ “inflated costs and opaque terms of purchase and ownership,” as well as buyers’ skepticism about the legitimacy of Stockx’s products, according to the lawsuit, have harmed Nike’s commercial reputation.Online Retailer For Selling Unauthorized Nike Shoes NFTs Complaints about the Stockx NFTs’ “inflated costs and opaque terms of purchase and ownership,” as well as buyers’ skepticism about the legitimacy of Stockx’s products, according to the lawsuit, have harmed Nike’s commercial reputation.
Meanwhile, Nike is planning to introduce its own virtual products later this month in cooperation with RTFKT, a digital creative studio it purchased in December.
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The action seeks financial damages as well as an injunction expulsion Stockx from selling or advertising Nike-branded Vault NFTs. It conjointly needs the unauthorized NFTs to be destroyed via the sell marketplace.
The number of NFT-related litigation is on the rise. In November of last year, Miramax filed a lawsuit against director Quentin Tarantino over his plans to auction NFTs from the 1994 picture “Pulp Fiction.”
The film was directed by Tarantino, although it was distributed by the company. Last month, Hermes filed a lawsuit against artist Mason Rothschild for his “Metabirkin” NFTs of their Birkin purses.