StockX Responds to Nike Counterfeit Claims, Accuses Sportswear Giant of Trying to Resuscitate Flagging VaultNFT Lawsuit – crypto.news

StockX has issued a terse response to Nike’s claims that the secondhand marketplace was selling counterfeit Nike products.

Nike Adds Counterfeiting Claims to StockX Lawsuit

In a new filing that amends its original complaint, Nike is accusing StockX of selling counterfeit merchandise labeled as authentic. The move comes after Nike says it bought four pairs of fake sneakers from StockX over the last couple of months, including a pair of Patent Bred Air Jordan 1 High OG.

Responding to the new accusations, StockX waved away Nike’s claims as nothing more than a ploy to revive its failing lawsuit.

In a statement released on its official Twitter handle, StockX reiterated that it had invested millions of dollars in protecting its customers from counterfeit products.

The company also pointed out that Nike’s own brand protection team had approved StockX’s proprietary authentication program. StockX also noted that its platform was quite popular with Nike employees, including current senior executives.

StockX finished its statement by describing Nike’s VaultNFT challenge as being without merit and demonstrative of its lack of understanding of emerging crypto-inspired marketplaces.

Nike Unhappy With VaultNFT

StockX, which is valued at $3.8 billion, is a leading reseller of used sneakers, bags, and streetwear. The company uses a proprietary authentication process to verify the legitimacy of the products on its platform.

In January 2022, StockX decided to grow its reach and reputation by launching a non-fungible token program dubbed VaultNFT linked to physical goods sold on the platform.

With Nike products being top-rated on StockX, the bestselling Vault tokens were naturally Nike-based NFTs, such as the Patent Bred Air Jordan 1.

However, Nike claims that the NFTs constitute, among other things, trademark infringement, false designation of origin, and trademark dilution. The sportswear company also accuses StockX of using Nike’s trademarks to promote, market, and attract potential customers.

StockX has denied the accusations and stated that the NFTs only represent proof of ownership of physical goods stored at its vaults and which customers can trade on the StockX platform.

The company clarified that its NFTs were not virtual sneakers and that StockX was not using the Vault program to imply any association or connection to Nike or any other third-party brand.

Nike vs. StockX Only the Beginning in NFT Copyright Wars

Last year, Nike acquired a digital art studio called RTFKT to create its own NFT showcase. RTFKT had previously launched a custom-designed sneaker NFT collection where buyers could redeem their NFTs for actual shoes, similar to StockX’s VaultNFT program. Some observers think that the Nike suit may be an attempt to protect its turf and brand in anticipation of launching its own NFT collection.

We might see a rise in copyright infringement allegations as crypto projects looking to cash in on the NFT craze mint tokens based on the works of artists and brands without their permission.