Nike is suing Detroit StockX, says it bought counterfeit shoes on platform | Detroit Metro Area News | Detroit

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A StockX processing center in Detroit.

Retail giant Nike is suing Detroit-based StockX, alleging it bought four pairs of counterfeit shoes on the sneaker resale platform between December 2021 and January 2022.

“Those four pairs of counterfeit shoes were purchased in a short two-month period on the StockX platform, all had StockX’s ‘Verified Authentic’ hangtag, and all came with a StockX paper receipt in the shoe box that indicated that the condition of the shoes is ‘100% authentic,'” Nike said in a court filing Tuesday.

Nike initially filed a copyright infringement lawsuit against StockX in February in federal court in Manhattan. On Tuesday, he asked a federal judge to add claims of forgery and false advertising to the lawsuit.

The copyright infringement claim accuses StockX of “blatantly exploiting” Nike’s trademarks as part of its “Vault NFT” service, or unique digital versions of the shoes it resells. According to the lawsuit, Nike’s lawyers argue:

“StockX built its aftermarket business by exploiting the immense goodwill and reputation that Nike has amassed over many years as the world’s leading designer, developer, marketer and seller of sports footwear and apparel. Now, recognizing firsthand the immense value of Nike’s brands, StockX chose to enter the lucrative NFT market, not taking the time to develop its own intellectual property rights, but rather brazenly leveraging, almost exclusively, Nike’s famous trademarks and associated goodwill.” .

In a statement shared with subway schedulesStockX denounced Nike’s claims and accused the company of simply not understanding novel NFTs.

“We take customer protection very seriously and have invested millions to fight the proliferation of counterfeit products that virtually every global market faces today. Nike’s latest filing is not only unsubstantiated, it’s also curious given that their own brand protection team has communicated confidence in our authentication program, and that hundreds of Nike employees, including today’s top executives, use StockX to buy and sell products.This latest tactic is nothing more than a desperate attempt and in a panic to resurrect their lost legal case against our innovative Vault NFT program which revolutionizes the way consumers can buy, store and sell collectibles safely, efficiently and sustainably Nike’s challenge is without merit and clearly demonstrates their lack of understanding of the modern market”.

Nike accuses StockX of “almost exclusively [using] Nike marks the launch of its Vault NFTs because it knew doing so would attract attention, drive sales, and confuse consumers into believing that Nike collaborated with StockX on the Vault NFTs.” As evidence, the company provided examples from social media showing confusion among customers regarding Nike’s involvement:

“Nike did not approve or license StockX’s Nike-branded Vault NFTs. Such unauthorized products are likely to mislead consumers, create a false association between those products and Nike, and dilute Nike’s famous trademarks. In fact, consumers are already wondering if Nike authorized StockX to sell their infringing NFT products, asking how StockX received ‘the license to sell NFTs with [N]as a brand.

StockX was co-founded in 2015 by billionaire Dan Gilbert, who Inc. reported that he was inspired to create a “stuff stock market” after noticing that his teenage sons were spending a lot of time on eBay bidding on sneakers.

As of 2019, the company had over 800 employees in Detroit and was considered one of the fastest growing startups in the city. It also has international offices in the UK, the Netherlands and Japan.

The company says it prides itself on its transparency and authenticity. “We believe in the power of truth, authenticity and transparency. We do what is right and we do it well,” he wrote on his information page.

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