TL; DR Breakdown
- Nike sues unlicensed NFT sneaker seller
- StockX sold 500 premium NFT sneakers
- Nike set to enter the NFT market
The Non-fungible token market has been blowing hot in the last few months after showing so much potential. With more companies and individuals entering the space, we have a good time in the sector on our hands soon. However, things are shaping up to look like Nike has already kickstarted its licensed NFT war. In a recent update, the company has taken StockX, which resells its products as NFT, to court.
StockX has sold 500 premium sneakers
According to the said lawsuit, Nike would be slamming charges on trademark infringement to selling of unlicensed virtual sneakers. In a recently published Reuters report, it mentioned that Nike filed the lawsuit at a court in New York, where it requested StockX pay damages. Also, NFT company must stop all sales of its sneakers on all marketplaces.
StockX has been in the virtual sneakers business since the start of the year, seeing massive patronage. StockX announced recently that it is working on providing users with a physical version of the bought digital sneakers soon. In its report, Nike claimed that the company has a sales record of about 500 virtual footwear with their trademark. It complained that this had made a dent in their reputation.
Nike set to enter the NFT market
Nike also claimed that the company was selling the virtual footwear at outrageous prices, which comes with questionable conditions guarding ownerships. StockX is very popular in the sector owing to the company’s over $3 billion valuation. Going by records, the footwear company’s products can still be purchased on the StockX website. The product, ‘The Vault,’ consists of about 9 high ranged sneakers.
The footwear company also said that the NFT market had provided a way for companies to communicate with users. But some of the companies in the sector are trying infringe on trademarks of popular brands to make illegal profits. The company is also on the verge of entering the market, as per an announcement some months back. The massive NFT hype has made a sure way for companies to market their products. However, its popularity is now one reason why malicious actors are exploiting it. Besides Nike’s lawsuit, other companies have now slammed theirs on artists and producers in the NFT market.