Nike accuses StockX of selling fake shoes — after buying its own fakes

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The next battle in the ongoing war between Nike NKE,
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and online market company Stockx is ramping up.

Nike amended its complaint against StockX to include accusations of selling counterfeit products labeled as “genuine” on its platform. It comes after Nike said it purchased four pairs of fake shoes from StockX in the past few months, including a pair of Air Jordan 1 High OG “Patent Bred” sneakers. A pair of these size 11 shoes sells for around $340 in the secondary market after taxes and fees are applied.

“These four pairs of counterfeit shoes were all purchased within two months on StockX’s platform, all had StockX’s ‘Verified Authentic’ hang tag, and all came with a paper receipt from StockX. in the shoe box stating that the condition of the shoes are ‘100% authentic,'” Nike said in the court filing with the Southern District of New York.

StockX sells shoes, apparel, and other items from various brands, including but not limited to Nike, Adidas ADS,
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and Under Armor UAA,
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The merchandise does not belong to StockX at the time of the sale; instead, the sale is made between two people who agree on a price, and StockX acts as an intermediary to authenticate the product, for a fee.

“We take customer protection very seriously and have invested millions to combat the proliferation of counterfeit products that virtually every global market faces today,” a StockX spokesperson told MarketWatch. “Nike’s latest filing is not only baseless, but also puzzling given that their own brand protection team trusted our authentication program and that hundreds of Nike employees – including senior executives – are using StockX to buy and sell commodities. This latest tactic is nothing more than a panicked and desperate attempt to resurrect its losing lawsuit against our innovative Vault NFT program that is revolutionizing the way consumers can buy, store and sell collectibles safely, efficiently and sustainably.Nike’s challenge has no merit and clearly demonstrates their lack of understanding of the modern market.

Nike representatives were not immediately available to comment on the new infringement allegations.

Nike first sued StockX with a trademark infringement lawsuit in February, accusing the company of violating trademark law by selling non-fungible tokens, aka NFTs, with Nike’s logo. in fact, the “Patent Bred” Air Jordan 1 High OG that Nike claims to have purchased counterfeits from StockX’s site, is also one of eight Vault NFTs that StockX sells – and its top-selling NFT – that Nike claims carries. infringement of its copyright.

When discussing the trademark portion of the lawsuit, StockX claimed that Nike showed a “fundamental misunderstanding” of NFTs by suing them.

After receiving a $3.8 billion valuation, the Detroit-based sneaker resale platform recently tapped Morgan Stanley MS,
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and Goldman Sachs GS,
+0.59%
as it prepares to go public sometime in 2022, according to Bloomberg.


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