Nike, Inc. v. StockX LLC

Trademark
Written By Michael Eshaghian

Overview

Filed February 3, 2022 in the Federal District Court for the Southern District of New York.

Summary: StockX sells NFTs that represent ownership of physical goods (like sneakers) that are stored in StockX’s “vault.” StockX minted and sold NFTs of shoes having Nike’s famous trademarks which represent ownership of Nike shoes in its vault. Nike sued StockX for trademark infringement and related claims.

Status: The parties have heavily litigated discovery disputes, including a motion by Nike to compel StockX to produce documents and to supplement an inadequate deposition. On October 17, 2022, the parties submitted a joint letter to the court summarizing their discovery to date. Of note, it seems like Nike subpoenaed PUMA and Michael Malekzadeh for documents. The latter was charged with wire fraud, conspiracy to commit bank fraud, and money laundering by the U.S. government in July 2022 in connection with his sneaker resale venture, Zadeh Kicks. The parties submitted dueling summary judgment motions, which remain pending.

Bottom Line: A decision in this case will clarify to what extend third parties can use established brands’ trademarks in their own NFTs and how courts treat NFTs—as products themselves (Nike’s position) or as receipts for physical products (StockX’s position).

 
Michael Eshaghian
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