The US-based sportswear giant Nike is suing StockX, an online resale marketplace selling shoes, streetwear and other goods, for trademark infringement, trademark dilution and other charges.

Nike claims StockX allegedly sold Nike-branded non-fungible tokens (NFTs) that did not originate from Nike during a mid-January drop, using Nike’s brand to sell digital assets at higher prices than the physical item that the NFT represents. 

As per the lawsuit, Nike’s complaints against StockX are as follows:

“Without Nike’s authorization or approval, StockX is ‘minting’ NFTs that prominently use Nike’s trademarks, marketing those NFTs using Nike’s goodwill, and selling those NFTs at heavily inflated prices to unsuspecting consumers who believe or are likely to believe that those ‘investible digital assets’ (as StockX calls them) are, in fact, authorized by Nike when they are not.”

Nike requested in the lawsuit that StockX cease and destroy all NFTs associated with Nike’s trademarks and pay for damages Nike suffered. 

StockX is another online marketplace facing legal ramifications for selling NFTs in an unauthorized manner. On February 2, a music NFT marketplace called HitPiece came under fire for selling digital assets of music without the original creators’ consent and originally pulled down its platform.

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