StockX has issued a public response to Nike’s NFT lawsuit against the resale platform. While claiming that the lawsuit is “without merit,” StockX insists that its NFTs “are absolutely not ‘virtual products’ or digital sneakers” [emphasis theirs]. The company points to fair use and nominative first sale doctrines in trademark law to argue that its selling of NFTs based on Nike sneakers is lawful.
StockX’s first entry into the metaverse came in mid-January when it launched a series of sneaker NFTs consisting almost entirely of Nike designs. Subsequent releases have brought tokens for other sneakers and streetwear collectibles, and each NFT is tied to a physical product kept in StockX’s “vault.” NFT holders can redeem and give up ownership of their tokens in exchange for the corresponding physical product — although when and how users would be able to do so was not initially made clear, just one of several issues surrounding StockX’s entry into the NFT marketplace.
