NFT battles: Nike takes seller of unlicensed NFT sneakers to the court

Popular sneaker shaper Nike has started the "licensed NFT" wars by taking an online reseller called StockX to tribunal for trademark infringement oregon merchantability of unlicensed nonfungible token (NFT) sneakers.

According to a Reuters report, Nike has filed a suit against the reseller successful the New York Federal tribunal demanding an undisclosed magnitude successful damages and a halt of income connected specified virtual collectibles. StockX reportedly started selling Nike sneaker NFTs successful January and promised buyers they tin redeem the real-world mentation of the sneakers successful the adjacent future.

Nike successful its 50-page ailment claimed StockX has sold astir 500 NFT sneakers with the Nike branding which has dented their estimation and legitimacy. The shoemaker marque besides alleged the NFT sneakers were being sold astatine inflated prices with precise “murky presumption of acquisition and ownership.” 

StockX is simply a fashionable online reseller estimated to beryllium worthy $3.8 cardinal and the NFT sneakers due to the fact that of which it is facing the suit is inactive online. The postulation is called ‘The Vault’ comprising of 9 premium Nike sneakers and deals with NFTs tied to their real-world asset.

Related: From creation to gaming: The biggest NFT trends of 2021

Nike claimed NFTs are a mode for brands to interact with their customers, but immoderate of the players successful the marketplace are trying to “usurp the goodwill of immoderate of the astir celebrated trademarks successful the satellite and usage those trademarks without authorization to marketplace their virtual products and make ill-gotten profits.” The shoe-maker is acceptable to motorboat its ain NFTs postulation aboriginal this period successful relation with precocious acquired creation workplace RTFKT.

NFTs popularity has made it a superior PR and selling instrumentality for brands and celebrities. However, arsenic with immoderate fashionable usage lawsuit successful the decentralized world, NFTs person reached a constituent of exploitation. Apart from Nike, determination person been respective different lawsuits astir NFTs involving large brands and celebrities. Pulp Fiction’s movie accumulation institution Miramax sued the manager of the movie Quentin Tarantino for selling NFTs of the movie, calling it copyright infringement.