Nike is one of the largest and most recognizable brands globally, and in recent weeks, the company has been involved in proceedings that seek to end unauthorized usage of the company’s brand in NFTs
Nike vs. StockX
Nike is a brand that’s synonymous with excellence, and in more ways than one, Nike has evolved to become way more than just a sports brand; it’s a way of life for millions of people globally.
Nike has created some of the most sought-after products in history, and some of its shoes have become sort of “currencies.” Although the company has fierce competition from brands like Adidas, Puma, and the likes, Nike is the Gold standard for sports excellence to a lot of people.
StockX is a Detroit-based sneaker retailer, and the company has grown and solidified its position as a “stock market for sneakers.” If you own a sneaker, you can list it on StockX, and after some due diligence, your sneaker will be made available on the company’s website if your product is accepted.
Once your product is accepted and listed, potential buyers can show interest in your sneaker by bidding, and the winning bid gets the product.
StockX recently delved into the NFT space, and the problems with Nike began when the company started offering NFTs of shoes made by brands like Nike. When StockX began offering NFT versions of Nike shoes with a physical copy, Nike was livid, claiming it to be an infringement on its intellectual property rights.
StockX NFT Vault
According to StockX, its NFT Vault offering serve the purpose of being receipts customers can redeem for the corresponding pair of physical sneakers. In StockX’s view, the company is not infringing on Nike’s intellectual property. If a customer chooses to redeem the physical version of their NFT, they are obliged to surrender the NFT.
Nike is a company that has wholeheartedly embraced the NFT space, and the company recently announced a partnership with RTFKT, an NFT studio. In Nike’s view, StockX’s “receipt” theory doesn’t cut it, and they consider the NFT Vault product to be a direct infringement on its intellectual properties.
As companies make their NFT debuts, it’s essential to tread lightly because in cases such as this, it’ll be the first of its kind, and nobody can be sure what way the judgment will go. The last thing any company wants is a lawsuit while entering the NFT space.
Nike Takes IP matters seriously
When Nike decides that its actions are detrimental to its brand, it can ask the courts to destroy all unauthorized goods produced. Nike has taken such measures in the past, and the company is strongly committed to brand protection and management.
Nike filed a complaint in February with the New York Federal Court, and among other things, Nike wants the company to stop the trade of NFT sneakers relating to its brand and turn over its NFT related profits to the company.
Nike also wants the judge to “order that StockX be required to deliver to Nike for destruction any and all Vault NFTs.”