Nike has filed a lawsuit against online sneaker reseller StockX, accusing the marketplace of marketing and selling non-fungible tokens using Nike’s trademarks without authorization. According to the complaint, StockX sold 558 Nike-branded digital sneaker NFTs at “heavily inflated prices to unsuspecting customers.”
StockX is accused of trademark infringement and dilution in a lawsuit filed in federal court in New York. “Nike did not approve or authorize StockX’s Nike-branded Vault NFTs,” according to the complaint. “The inflated prices and murky terms of purchase and ownership of the Vault NFTs have already resulted in public criticism of StockX and allegations that the Vault NFTs are a scam.”
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A physical pair of black and white Nike Dunk Low shoes has an average sale price of $282 on StockX. Nike’s lawsuit points out that the digital NFT images of those same sneakers has an average sale price of $809 on StockX.
The suit also mentions Nike’s December acquisition of digital apparel brand RTFKT Studios, which plans to release virtual products this month to expand Nike’s “Web3, metaverse, and blockchain-based experiences.”
StockX has a $3.8 billion valuation and was co-founded by Cleveland Cavaliers owner Dan Gilbert. Nike’s NFT displeasure is similar to another ongoing controversy in the music industry, as artists such as Eve 6’s Max Collins and Bleachers singer Jack Antonoff have accused music NFT marketplace HitPiece of selling NFTs of their songs and album art without permission.
