Nike Battles StockX In Court For Selling Sneaker NFTs Without Permission

Since NFTs became popular, various brands, individuals, and companies have taken steps to turn their products into NFTs. Musicians have sold albums as NFTs, concert tickets as NFTs, and so on. The buzz about NFTs is not something that will die down anytime soon.

One of the privileges of having an NFT is ownership and copyright. It allows the owner of the non-fungible token to maintain full copyright. 

Hence it is understandable that Nike took StockX to court over alleged property theft. This is the start of the long-awaited non-fungible tokens battle that was bound to happen anytime with the increase of NFTs in the market.

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StockX is an online company that sells handbags, trading cards, collectibles, and sneakers. The firm is worth over $3.8 billion. Sadly, the unlicensed collectibles are still on its site under the collection name “The Vault.” The collection has nine high-quality Nike shoes and unlicensed NFTs.

Selling Unlicensed NFTs

As stated by news provider Reuters, the famous shoemaker sued the reseller for intellectual property theft and asked for damages. The case was filed in a Federal Court in New York. Regarding the amount Nike is asking for damages, it has not been revealed to the public. Other than asking for payment for damages, the shoe brand has demanded that sales of the collectibles are stopped immediately. 

According to reports, the resell firm began selling the unlicensed NFTs as of January. Also, StockX allegedly promised those who bought that they could redeem them to get the physical sneakers later in the future. 

In Nike’s 50-page lawsuit, the company claims that over 500 non-fungible tokens of the sneaker were sold, and this had affected the image and reputation of its brand. The case also said that StockX sold them at exorbitant prices with unclear terms of ownership. 

Nikes To Launch NFTs Soon

According to Nike, Non-Fungible Tokens are one way brands can communicate with their users. Still, some big names in the market are trying to undermine the efforts of others and make gains from their products without authorization and permission. The shoe firm will be partnering with RTFKT to launch NFTs shoe collections later in February. 

The worldwide popularity and acceptance of Non-Fungible Tokens have made several brands start using them as marketing tools. Other than Nike’s lawsuit, different brands and celebrities are also filing lawsuits against criminals trying to “steal” these collectibles. One of such cases is the lawsuit between Miramax and Film Director Taranto, who sold movie NFTs without permission. The earlier these people face the law, the better for the crypto community. Such thefts are not deterring other brands such as Italian supercar; Ferrari is set to release its NFTs soon.

As of the time of this report, there has even been no official response from StockX regarding the petition.

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