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StockX Says Nike Shows ‘Misunderstanding’ of NFTs in Lawsuit

March 31, 2022, 1:01 PM

Sneaker marketplace StockX responded to a trademark-infringement lawsuit from Nike Inc. on Thursday, saying in a court filing that the world’s largest athletic-wear company shows a “fundamental misunderstanding” of nonfungible tokens.

In February, Nike filed a complaint in federal court in Manhattan accusing StockX of “blatantly freeriding” on Nike’s trademarks and goodwill with a new service called Vault NFTs.

StockX contends that its NFTs aren’t virtual sneakers but rather e-commerce listings for physical sneakers that users can buy or sell. The Vault service allows users to trade sneakers instantly without ever taking possession of them, thus eliminating shipping costs and transit times.

“Using NFTs ...