Nike’s accusations that StockX was selling counterfeit Nike products have met with a sharp retort.
Counterfeiting Claims
Nike accuses StockX of selling counterfeit merchandise that marketed as legitimate in a new filing that changes its initial case. The move comes after Nike said it purchased four pairs of fake footwear from StockX over the last couple months. This is a pair of Air Jordan 1 High OG Patent Breds.
In response to the latest allegations, StockX dismissed Nike’s assertions as a ruse to revive the company’s dormant litigation. StockX said in a statement on its official Twitter account that it has spent millions of dollars protecting its clients from counterfeit products.
Nike’s own brand protection team has also validated StockX’s own authentication program, according to the business. They also mentioned how popular the site was among Nike employees, including current senior executives.
StockX concluded their argument by claiming that Nike’s VaultNFT challenge is unfounded. It demonstrates its lack of grasp of developing crypto-inspired marketplaces, they claim.
Unhappy with VaultNFT
StockX is a large reseller of secondhand sneakers, bags, and streetwear, with a market capitalization of $3.8 billion. The company verifies the legitimacy of the products on its site using a proprietary verification technique.
StockX chose to expand its reach and reputation in January 2022 by establishing a non-fungible token scheme. It was given the name VaultNFT since it was tied to physical things offered on the site.
The most popular Vault tokens Nike-based NFTs, such as the Patent Bred Air Jordan 1.
Nike, on the other hand, contends that the NFTs are trademark infringement, misleading designation of origin, and trademark dilution. Nike also charges StockX of promoting, marketing, and attracting new clients using Nike’s trademarks.
The allegations have refuted by StockX. They claim that the NFTs solely uses to prove ownership of tangible commodities held in their vaults and traded on the StockX platform.
It confirms that the company that its NFTs were not virtual footwear. It was not implying any affiliation or relationship to Nike or any other third-party brand by using the Vault program.
Copyright Wars
Nike bought RTFKT, a digital art company, last year to develop its own NFT display. RTFKT had previously released an NFT range of custom-designed sneakers. Similar to StockX’s VaultNFT service, this is where consumers may exchange their NFTs for actual shoes.
Some speculate that Nike’s suit is an attempt to defend its turf and brand ahead of the debut of its own NFT line. Allegations of copyright violation may become more common. To cash in on the NFT frenzy, crypto companies are minting tokens based on the works of artists and brands without their permission.
