StockX Denies Nike’s Accusations That It Sells Counterfeit Shoes

Sneaker marketplace StockX LLC denied Nike Inc.’s accusation that it is selling counterfeit shoes, saying the platform has one of the strongest authentication processes in the industry and has devoted millions of dollars to battle the spread of fake products.

The world’s largest sneaker maker claimed in a February lawsuit that StockX is infringing trademarks through a service called Vault NFTS. Nike escalated the battle last month, saying it has purchased counterfeit shoes on the site despite promises that everything sold on the platform is authentic.

StockX fired back on Monday. In a court filing, the company said its authenticators use their own knowledge along with the company’s own artificial intelligence-based technology to ensure all products sold on the site are real.

Nike’s suit is “nothing more than a baseless and misleading attempt to interfere with an innovative and efficient method to trade in current culture,” StockX said. The shoemaker’s allegations “show a fundamental misunderstanding of the various functions NFTs can serve,” StockX said.

“StockX is no different than major e-commerce retailers and marketplaces who use images and descriptions of products to sell physical sneakers and other goods online, and which consumers see [and are not confused by] every single day,” StockX said. “Nike’s suit threatens the legitimate use of NFTs as claim tickets not just by StockX, but by other innovators that also use NFTs to track title to physical goods held in a vault, such as fine art, whiskey, and wine.”

By Chris Dolmetsch

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Nike Escalates Feud with StockX, Says Site is Selling Fake Shoes

Nike asked a federal judge to let it add claims of counterfeiting and false advertising to the current trademark-infringement lawsuit against StockX.