StockX Fights Back Against Nike Lawsuit, Reveals Unsealed Filings
StockX is looking to escape some of the claims lodged against it by Nike, newly unsealed court filings reveal. In a motion for partial summary judgment that was originally filed in August and unsealed on Tuesday, the online resale platform is looking to escape the false advertising claims that Nike is waging, which stem from its sale of non-fungible tokens (“NFTs”) tied to images and physical versions of Nike footwear – albeit without receiving Nike’s authorization.
In its newly unsealed motion for partial summary judgment, StockX argues that Nike has failed to put forth any evidence showing that its authentication and advertising practices mislead consumers or harm Nike. Specifically, Detroit-based StockX highlights the accuracy of its claims surrounding the sneaker-tied NFTs, the non-material impact of its advertising on consumer decisions, and the absence of any injury to Nike as a result of its advertising and sale of the NFTs.
Meanwhile, StockX does not contest Nike’s broader trademark infringement and unfair competition allegations in its motion; those causes of action remain central to the parties’ dispute.
The Background: Nike first filed suit against StockX in a New York federal court in February 2022, accusing the sneaker and apparel marketplace of trademark infringement, dilution, and unfair competition in connection with its Vault NFTs, digital assets linked to authenticated Nike footwear. According to Nike’s complaint, StockX marketed the NFTs using various Nike trademarks, thereby, creating confusion among consumers as to the source of the NFTs and/or Nike’s involvement with the project, and leading to public criticism of the NFT-based venture.
Nike’s underlying complaint warns of potential misuse when it comes to web3 technology, with the sportswear titan, arguing that NFTs “have become a virtual playground for infringers to usurp the goodwill of some of the most famous trademarks.”
Meanwhile, in defending its position, StockX has argued that its Vault NFTs serve as proof of ownership for the physical products at play and do not represent standalone digital sneakers. The company states that it explicitly clarifies that the NFTs are not affiliated with third-party brands like Nike and further argues that it does not need authorization to sell the physical products (thanks to the first sale doctrine) and the corresponding NFTs at issue, which act as a receipt of sorts for those physical products.
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