Nike sues sneaker resale portal StockX for auctioning NFTs of its brand

The company has filed a lawsuit in New York federal court against the second-hand shoe sales company for creating and selling virtual sneakers based on the ‘Swoosh’ brand.

Nike defends positions in the metaverse. The Oregon-based company has filed a lawsuit in New York federal court against StockX, which it accuses of creating and auctioning virtual products based on the Swoosh brand. Nike’s legal services have harassed the NFT coining sneaker resale platform using the US firm’s trademarks.

Now, the company is seeking damages and an injunction to force StockX to stop selling non-fungible Nike-branded tokens. In its lawsuit, the company laments that NFTs have “quickly become a virtual playground for infringers to bypass some of the world’s most famous trademarks and use them without authorization to market their virtual products and generate ill-gotten gains.” According to the Oregon-based company, StockX has sold more than 550 Nike-branded NFTs.

StockX raised 60 million dollars (52.6 million euros) last year, which was added to the other 275 million dollars (241 million euros) it raised in 2020. After its last round, the sneaker resale portal and Other sports fashion items increased their valuation to 3,800 million dollars (3,192 million euros).

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In the absence of knowing the results of the last financial year, the company closed 2020 with 7.5 million transactions and moved goods worth 1,800 million dollars (1,491.6 million euros), which generated revenues close to 400 million dollars (351 million euros).

StockX reached its break even in the first year of the pandemic after registering more than 200 million users on its portal, while active buyers increased by 90%. Now, the company is preparing to go public after being valued at 3,800 million dollars (3,192 million euros).

For its part, Nike closed the first half with a profit of 3,211 million dollars (2,849 million euros), 16% more than during the same period of the previous year. In the accumulated figure for the year, revenues rose to 23,605 million dollars (20,903 million euros), a year-on-year increase of 8%.

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