Back in February, Nike sued StockX, A popular online sneaker reseller for launching the Nike shoe-based non-fungible token (NFT) series.Then blamed StockX last month Deliberately sell counterfeit products — StockX claims to certify the shoes sold on the site, which is not possible. Well, StockX I’m fighting back.. In a court filing, a sneaker reseller said Nike’s complaint was “just a failure of an attempt to reinforce a claim that is still worthless.”
StockX announced the Vault NFT series in January.Company’s Own wordsThe idea was to allow customers to buy NFTs associated with physical products that resemble digital receipts. According to the company, buyers don’t have to wait for the shoes to be resold, allowing for more efficient transactions. Of the nine limited edition Vault NFT series that were first released, eight were linked to Nike shoes.
When Nike filed a proceeding, NFT claimed it was infringing on its trademark and would confuse customers. next, Corrected complaint, Nike said it bought four pairs of counterfeit shoes from December to February. Basically, Nike is questioning how StockX uses NFTs to authenticate sneakers when it’s uncertain whether the sneakers are genuine or fake.
StockX has a problem characterizing Nike’s authentication process. Unlike other resellers, StockX has made a name for itself by promising that each shoe sold on the site is genuine. In the filing, the reseller states that each sneaker is manually inspected with “AI-enhanced machine learning technology.” He also mentioned in the past that Nike praised StockX’s certification process and efforts to prevent counterfeiting.
Basically, the whole brouhaha is summarized in Nike and StockX, who disagree about what Vault NFT is. In the filing, StockX states that Vault NFTs are “not” virtual products “or digital sneakers” because they are associated with physical merchandise. It states that StockX acts as a digital receipt and cannot actually be sold as a separate product. The important thing is that when you buy a Vault NFT, the shoes themselves actually stay in StockX inventory until someone chooses to request a physical item. In the meantime, NFTs can be sold multiple times.According to Nike, this makes Vault NFT another product. No Digital receipt.
However, while this case is resolved, it can have widespread implications for how NFTs are actually defined and whether NFTs in the resale market are considered trademark infringement.