Sneaker giant Nike sued online reseller StockX in New York federal court on Thursday for selling unauthorized images of Nike shoes, marking the latest lawsuit over the digital asset called is a non-fungible token.
Nike says StockX’s NFT infringes its trademark and is likely to confuse consumers. Their lawsuit asks for unspecified monetary damages and an order blocking their sale.
Detroit-based StockX, a platform that resells sneakers, bags and other goods, was valued at more than $3.8 billion last year.
A representative for the company did not respond to a request for comment, nor did Nike or its attorneys.
Nike said that StockX last month began selling unauthorized NFTs for its sneakers, telling buyers they will be able to redeem tokens for physical versions of the shoes “in the near future. “
The lawsuit says StockX sold more than 500 Nike-branded NFTs. The lawsuit says complaints about NFT’s “increasing prices and unclear terms of sale and ownership” and buyer doubts about the legitimacy of the StockX template damaged its reputation. Nike’s business.
Nike says it will release “several virtual products” later this month in conjunction with digital art studio RTFKT, which it acquired in December.
NFTs have recently gained popularity and lawsuits about them have begun to be filed in US courts. In November, Miramax sued director Quentin Tarantino over an NFT auction scheme involving his 1994 film “Pulp Fiction” which he directed and distributed by the studio.
Last month, Hermes sued artist Mason Rothschild over his “MetaBirkin” Birkin bags.
(Edited by Stephen Coates)