Nike cries foul over virtual shoes, suing retailer that sells sneaker NFTs


(Reuters) – Sneaker large Nike sued on-line reseller StockX in New York federal court docket on Thursday for promoting unauthorized photographs of Nike footwear, marking the most recent lawsuit over digital property often known as non-fungible tokens.

Nike mentioned StockX’s NFTs infringe its logos and are more likely to confuse shoppers. Its lawsuit requested for unspecified cash damages and an order blocking their gross sales.

Detroit-based StockX, a platform for reselling sneakers, purses and different items, was valued at greater than $3.8 billion final 12 months.

A consultant for the corporate didn’t reply to a request for remark, nor did Nike or its attorneys.

Nike mentioned StockX final month started promoting unauthorized NFTs of its sneakers, telling consumers they might have the ability to redeem the tokens for bodily variations of the footwear “within the close to future.”

The grievance mentioned StockX has offered over 500 Nike-branded NFTs.

The lawsuit mentioned complaints in regards to the NFTs’ “inflated costs and murky phrases of buy and possession” and consumers’ doubts in regards to the legitimacy of StockX’s mannequin have damage Nike’s enterprise repute.

Nike mentioned it’ll launch “quite a few virtual merchandise” later this month at the side of the digital artwork studio RTFKT, which it acquired in December.

NFTs have just lately exploded in recognition, and lawsuits over them have begun to hit U.S. courts. Miramax sued director Quentin Tarantino in November over his plans to public sale NFTs associated to the 1994 movie “Pulp Fiction,” which he directed and the studio distributed.

Last month, Hermes sued artist Mason Rothschild over his “MetaBirkin” NFTs of the French firm’s Birkin luggage.

(Editing by Stephen Coates)

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