February 3, 2023

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StockX hits back at Nike over claims of counterfeit shoe sales

2 min read

Online resale marketplace StockX is hitting back at Nike’s claims that the site has been allowing sales of counterfeit versions of its sneakers.

StockX, in a response to Nike’s allegations, defended its anti-counterfeiting measures and said Nike itself had previously praised them, according to a draft of a court filing seen by CNBC. The response is set to be filed in U.S. District Court in New York City on Monday.

“In the past, Nike has sought to collaborate with StockX and has communicated confidence in the StockX authentication process,” the Detroit-based company said in the draft filing.

Nike and an attorney who has represented Nike in this case did not immediately respond to a request for comment.

The legal battle between Nike and StockX started over non-fungible tokens, or NFTs, which are unique digital assets that consumers can buy and sell. Nike sued StockX in February, saying the online marketplace’s NFTs of Nike shoes infringed on trademarks and could confuse customers. Nike, which had been preparing for its entry into the so-called metaverse for several months, started selling its own NFTs earlier this year, reaping huge sums.

StockX has argued it uses NFTs to authenticate products as it seeks to boost efficiency and cut costs for customers.

Nike, which has been beefing up its own online business, added to its lawsuit last month, saying in an amended complaint that it was able to purchase four pairs of counterfeit shoes from StockX that were verified as authentic. One of the pairs matched a StockX NFT, Nike claimed.

Nike said in its amended complaint that it obtained the dubious shoes through StockX from December through the beginning of February, just before it filed its initial lawsuit against the company. In its draft filing, StockX questioned why Nike waited until May to include its claims about the counterfeit sneakers.

“Nike’s recent allegations lack merit, demonstrate a lack of understanding of the modern marketplace, and display anticompetitive…

2022-06-06 09:49:31

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