Sportswear company Nike recently sued StockX, an online reseller of shoes and other goods, claiming that StockX began selling virtual products using Nike’s trademarks. The lawsuit filed in the Southern District of New York alleges that these unauthorized non-fungible tokens (“NFT’s”) are likely to cause confusion and to create a false association in the minds of consumers that there is an association between Nike and the Nike-branded NFT’s. In addition to monetary damages, Nike seeks an injunction blocking such sales of StockX’s NFT’s.
The five (5) count complaint was filed near the time of Nike releasing its own NFT’s, including the “MNLTH,” which was released on or about February 8. This NFT features the “Nike swoosh” on both sides, and suggests that an unknown object is encased within the box. See https://opensea.io/assets/0x86825dfca7a6224cfbd2da48e85df2fc3aa7c4b1/1