Thursday, July, 07, 2022 03:20:16

StockX, the online resale marketplace, has reportedly responded to Nike Inc’s allegations that the site permits the sale of counterfeits of its sneakers.

Hitting back at Nike’s claims, StockX stood firm on its anti-counterfeiting policies. In a court filing draft, it mentioned that the shoe giant itself has expressed appreciation for the Detroit-based company in the past. The official response will be filed in New York City’s U.S. District Court on Monday.

The legal tussle between StockX and Nike started over NFTs (non-fungible tokens), which are distinct digital assets that can be bought or sold by consumers.

Nike filed a lawsuit against StockX in February, citing that the Nike shoes NFTs of the online marketplace are unauthorized, trademark-infringing, and could potentially confuse customers.

Nike started selling its own NFTs earlier this year in a bid to enter the so-called metaverse, and reaped significant sums from the venture.

StockX has pointed out that it leverages NFTs to trace physical product ownership, decrease costs, and increase efficiency for its customers.

On the other hand, Nike claims that it was able to buy four pairs of counterfeit shoes from the online marketplace that were verified authentic. It also claims that one of the pairs matched an NFT from StockX.

In its amended complaint, Nike stated that it obtained the counterfeit products through StockX starting in December through the beginning of February before filing its initial lawsuit against the online marketplace.

StockX countered by questioning Nike’s intent to wait until May to add the counterfeiting claims. CEO Scott Cutler has stated that the accusations from Nike are meritless and devoid of comprehension of the modern marketplace. He also added that the lawsuit showcases an anti-competitive attitude that could significantly impact the secondary market.

StockX has authentication sites worldwide and claims that authenticators have examined over 30 million products and protected buyers from sales of over USD 60 million in counterfeit sneakers.

However, StockX has admitted to the possibility that counterfeit products could bypass its vetting process.

Source Credit:

https://www.cnbc.com/2022/06/06/stockx-hits-back-at-nike-over-claims-of-counterfeit-shoe-sales.html