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What’s Happening in the Nike v. StockX Lawsuit

Nike StockX Lawsuit

News on this release was originally published on May 11, 2022.

Update August 24, 2023: According to the latest developments reported by Footwear News, a judge in the ongoing Nike v. StockX lawsuit has ordered StockX to produce information on the sellers who allegedly sold the fake sneakers to Nike. It has been reported that Nike want to know how many sales the seller has made – with the intention to further shine a light on the authentication process applied by StockX’s facilities.

Update March 21, 2023: The Nike v. StockX lawsuit just got even more heated! New court documents have revealed that StockX sold 38 fake Nike shoes to a customer between March and July last year.

Turns out that the individual who acquired the shoes was actually a reseller and spoke to Sockjig, a well-known figure in the sneaker space. According to the Tweet below, ‘He bought many University Blue, Mocha, and Hyper Royal Jordan 1s on StockX when the market price had dropped with the intent of holding and flipping later. 38 of them were fake.’

Additionally, according to Sockjig, ‘These 3 sneakers in particular had very good quality fakes flood the market in summer of 2022, which is why the market had dipped on them. And StockX, allegedly, had a tough time authenticating them.’

Interestingly, despite StockX changing its policy in November 2022 to read ‘we are unable to offer returns, exchanges, or swaps,’ the reseller was able to return all his fake pairs for a full refund.

Following the allegations, StockX issued the following statement to Nice Kicks:

‘While we can’t comment on pending litigation, we are confident in our legal defenses and have continuously supplied appropriate information in a timely manner. We stand by our verification process as one of the first and best in the industry, and in 2022 alone, rejected more than 330K products worth nearly $100M.

StockX also has a Buyer Promise in place, which is central to our mission of offering a safe and secure marketplace for both buyers and sellers. If we make a mistake and incorrectly verify an item, we’re committed to making it right for our customers.’

Update December 16, 2022: The StockX vs Nike lawsuit, initially a result of an NFT trademark infringement, is now being prepared to go to trial. And as they enter the discovery phase, during which both parties share evidence, more fake shoes have been called out.

In letters from both parties, as reported by Complex, StockX has said, ‘To test whether Nike’s allegations are accurate and whether StockX has in fact ‘harmed’ Nike’s ‘reputation,’ StockX is entitled to discovery into what that reputation is.’

According to Nike, they’ve purchased 78 fake shoes that StockX authenticated, with approximately 36 being sold to a single buyer. They also went on to say that ‘StockX advertised for years, without these documents, that its authentication process guarantees 100 per cent of the goods sold on its platform are genuine.’

StockX provided Complex with the comment, ‘While we can’t comment on pending litigation, the content in our filing speaks for itself. We stand by our verification process as one of the first and best in the industry, and in the first 11 months of 2022, StockX protected customers by rejecting nearly 300,000 products worth more than $80M.’

Stay locked for more updates on this case!

Update May 11, 2022: StockX have issued a statement in response to Nike’s court filing and claim that they sell counterfeit products, in which they accuse the Swoosh of pursuing a ‘baseless’ and ‘curious’ lawsuit. The statement mentions that hundreds of Nike employees, including senior executives, buy and sell products on the platform and that StockX view the suit as an attempt for Nike to ‘resuscitate its losing legal case against our Vault NFT program.’ See the statement and the original story below, and stay tuned for further updates.

‘We take customer protection extremely seriously, and we’ve invested millions to fight the proliferation of counterfeit products that virtually every global marketplace faces today. Nike’s latest filing is not only baseless but also curious, given that their own brand protection team has communicated confidence in our authentication program and that hundreds of Nike employees – including current senior executives – use StockX to buy and sell products. This latest tactic amounts to nothing more than a panicked and desperate attempt to resuscitate its losing legal case against our innovative Vault NFT program that revolutionizes the way that consumers can buy, store, and sell collectibles safely, efficiently, and sustainably. Nike’s challenge has no merit and clearly demonstrates their lack of understanding of the modern marketplace.’

In what appears to be an ongoing legal feud between Nike and StockX has now flared up once again! According to Bloomberg, Nike has requested (to a federal judge) that they add ‘claims of counterfeiting and false advertising’ to their existing trademark-infringement lawsuit with the secondary marketplace platform. These additional claims are the result of Nike alleging that they have purchased four pairs of fake shoes from StockX.

As per the court filing, Nike stated: ‘Those four pairs of counterfeit shoes were all purchased within a short two-month period on StockX’s platform, all had affixed to them StockX’s ‘Verified Authentic’ hangtag, and all came with a paper receipt from StockX in the shoe box stating that the condition of the shoes is 100% Authentic”.

Nike originally filed the lawsuit earlier this year in February over StockX’s ‘Vault’ NFTs which featured the Swoosh’s sneakers. Then in April, the resell giant hit back, saying that the claims made ‘lack merit, disregard settled doctrines of trademark law (including those of first sale and nominative fair use) and show a fundamental misunderstanding of the various functions NFTs can serve.’

Prior to that and in defence of their NFTS, StockX responded, with an excerpt reading, ‘The benefit of taking possession of the Vault NFT…is that the owner can make a future trade without incurring transaction costs, delay, or risk of damage or loss associated with shipping physical sneakers to StockX and then to the ultimate recipients.’

To catch up on previous developments on this story, click here.

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