Sneakerhead and hypebeast cultural hub StockX had their first formal incursion into NFTs with the 'StockX Vault.' They tokenize their physical assets.
Before this can happen, however, StockX will face more severe actions, as leading firm Nike is filing a lawsuit against StockX for unauthorized trademark usage.
StockX, Nike, and NFT Trademark Usage
As NFTs are in the early days, there's little to no precedent in how the courts will consider trademark integration and use when it reaches NFTs. However, here are the updates on the latest lawsuit in this space…
- A Federal lawsuit centered on brand dilution: Nike filed a lawsuit this week in the southern district of New York, which claims that the Vault program utilizes Nike trademarks without permission. The complaint reads:
"Nike disapproved of StockX's Nike-branded Vault NFTs. Those unsanctioned products are likely to confound consumers, create a false connection between StockX products and Nike, and weaken Nike's famous trademarks."
Nike's complaints replicate a typical critic's POV: StockX analysts in the early days of the Vault program have depicted disgust primarily around the degree of centralization within the 'Vault.' The platform's TOS state that an NFT in the Vault program can essentially be bailed from the owner's hands at any time for an "experiential component" at the platform's sole control.
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