Nike sues StockX for selling its shoe images as NFTs, plans to launch own virtual products

Non-Fungible Tokens (NFTs) are a big rage these days, with us seeing a lot of NFTs hit the market daily. A lot of companies have entered the marketplace to turn a profit. However, tables seem to have turned on online reseller StockX, which has been sued by sneaker giant Nike in a federal court in New York for selling unauthorised images of Nike shoes.

Nike states that StockX’s NFTs infringe its trademarks and are likely to confuse consumers. The company in the lawsuit has asked for unspecified money damages and an order blocking StockX’s NFT sales.

Nike states that StockX earlier last month began selling unauthorized NFTs of its sneakers. StockX claims that these NFT images at a later point of time would become redeemable for a pair of the physical versions of the shoes.

According to the lawsuit, Nike claims that StockX to date has sold over 500 Nike-branded NFTs. It also states that the NFTs “inflated prices and murky terms of purchase and ownership.” Buyers doubts about the legitimacy of StockX’s according to the sneaker giant have hurt Nike’s business reputation.

To recall, Nike had earlier announced that it will be releasing “a number of virtual products” later this month in conjunction with the digital art studio RTFKT, which it acquired back in December.

This is not the first major NFT involved lawsuit. Multiple other lawsuits have been filed related to NFTs in a number of courts. An example of such a lawsuit includes Miramax’s suing director Quentin Tarantino due to his plans to auction NFTs related to the 1994 film “Pulp Fiction.”

Apart from this, fashion brand Hermes recently sued artist Mason Rothschild over his “MetaBirkin” NFTs of the Birkin bags sold by the company.

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