Nike Sued Reseller StockX For Selling Unauthorized Pics As NFTs

Nike sued reseller StockX for selling unauthorized photos of Nike products as NFTs and some of them are sold triple the value of the actual sneakers so let’s find out more in today’s latest cryptocurrency news.

Nike sued the online sneaker reseller StockX after it filed a lawsuit at the New York Federal court today alleging that the vendor sold images of Nike sneakers as NFTs without authorization. Since the year started, StockX sold a huge variety of sneaker-themed NFTs as a part of its “Vault” collection. The NFTs are modeled on real sneakers and Nike complained that StockX told buyers that the unapproved NFTs will be redeemable for physical goods in the near future. The complaint said that StockX sold over 500 Nike-branded NFTs since launching the blockchain “vault” venture and sometimes made triple the value of the NFTs’ official physical counterparts.

Nike’s lawsuit argues that this is a clear case of copyright violation:

 “Those unsanctioned products are likely to confuse consumers, create a false association between those products and Nike, and dilute Nike’s famous trademarks.”

With a market valuation of $3.8 billion, the resale platform deals in everything from electronics, collectibles, watches, handbags, streetwear, and even bored ape Yacht Club physical collectibles. Companies such as Meta and Nike are betting big on the emerging metaverse and the rise of NFTs. Last year, the sports apparel company submitted four filling requests to trademark virtual goods with the US Patent and Trademark Office, and later that month, it built a virtual headquarters in Roblox which is a 3D online multiplayer game.

Nike announced that it acquired RTFKT Studios in the pivot towards creating a sneaker-themed digital collectible. The business rivals Adidas are also moving in a similar direction. The news broke that two-high profile announcements related to Adidas Metaverse push and the company partnered with crypto exchange Coinbase which has purchased a plot in blockcahin metaverse game the Sandbox. The huge metaverse moves are nothing to balk at but Nike’s latest legal action is another evidence that these companies are taking the digital world quite seriously.

As recently reported, Nike acquired RTFKT but it is unclear whether the acquisition is related to various NFTs and crypto patents filed by Nike a month ago. Nike announced that it acquired the virtual sneaker design company and a studio for NFTs. RTFKT was founded in 2020 to create a virtual sneaker design for online games and the Metaverse. The group provided designs for game companies and fashion designers before shifting to NFT designs last year.