Nike NFT Suit Tests ‘New Frontier’ of IP Law in the Metaverse

Does a digital ticket useful only for redeeming a pair of Nikes itself become a separate product if it prompts people to pay hundreds more than the shoes cost?

A court’s answer to that question could have big implications amid an early wave of intellectual property cases involving non-fungible tokens, or NFTs, attorneys say. NFTs are unique records stored on a database known as a blockchain, and virtual worlds known as metaverses have incorporated NFTs as a way to trade virtual assets.

In an ongoing lawsuit, Nike Inc. said NFTs sold by StockX signifying ownership of literal shoes represent more ...