Nike sued StockX over StockX’s Vault NFTs, accusing the company of violating its trademark.
Nike also said it was able to buy counterfeit sneakers on the StockX online marketplace.
Nike’s professional relationship with online marketplace StockX appears to have taken a turn for the worse.
Nike is seeking damages and an end to StockX selling the digital tokens.
StockX, on the other hand, says the trademark claim is baseless.
Nikeamended the suitthis week to include the allegation about counterfeit sneakers.
The legal battle has the potential to set some legal guidelines for NFTs, which currently have minimal restrictions.
Some NFTs have fetched millions of dollars, but theoverall value of NFTs has been falling in recent months.
What’s StockX?
StockX is an e-commerce site that mainly caters to people buying and selling sneakers.
eBay later instituted its ownauthenticity program for sneakers, in 2020.
That’s usually at a premium above the retail price.
Each shoe listed has its own price-tracking, to show its value, similar to a stock market listing.
It’s at these locations that StockX verifies the authenticity of the sneakers.
What’s StockX doing with NFTs?
StockX revealed its Vault NFT lineup back in January.
The physical sneaker remains in a vault owned by StockX until the owner of the NFT redeems it.
Why does Nike have a problem with StockX selling NFTs?
In February, Nike filed a lawsuit against StockX over trademark infringement.
Nike began selling its own NFTs in April.
This is the same shoe StockX included in its line ofVault NFTs.
