👟 Nike Is Done Playing Nice
Nike is suing online reseller StockX for creating NFTs of Nike shoes and infringing upon its trademarks. The suit is yet another in a recent spate that are defining the limits of NFTs and IP laws. Nike claims that StockX's NFTs appear like a collection of Nike goods, and thus is using Nike's trademark to enrich itself.
As The Fashion Law adds, Nike further claims that StockX “inflated [the] prices” of the NFTs and its unclear ownership terms have “already led to public criticism of StockX and allegations that [its] Vault NFTs are a scam.”
"The case hinges on whether StockX’s NFTs are an extension of its normal reselling process (like a digital receipt of ownership) or whether they’re products in their own right, with potentially significant implications for NFTs in general," notes The Verge.
An Accelerating Legal Strategy
Nike has been on a litigation kick recently—suing Adidas, Lululemon, Amazon, and eBay in addition to this StockX suit. According to Business Insider, this increased legal strategy is being spearheaded by CEO John Donahoe who is trying to protect the company's IP.
This case may prove to be a major defining moment for how NFTs and trademarks are used moving forward—regardless of the outcome. Should Nike be the victor, it would restrict who can make NFTs of IP that's not their own. Should StockX, it would break the door open for a flood of new NFTs based on anything.