Nike and StockX Reach Settlement in NFT and Counterfeit Sneaker Dispute

Gate News

19 Oct 2025 06:33

A three-year legal battle between Nike and StockX over trademark infringement related to sneaker-linked NFTs has come to an end. The settlement, reached after prolonged negotiations, marks a significant milestone in the intersection of intellectual property rights and digital assets.

The agreement effectively cancels a jury trial scheduled for November and dismisses all claims with prejudice.

This resolution benefits both parties by avoiding potential pitfalls of a court ruling. StockX escapes the risk of being found culpable for broader misuse of Nike’s brand, while Nike sidesteps the unpredictability of having its IP enforcement strategies scrutinized by a jury.

Unresolved Claims and Case Background

The dispute originated in February 2022 when Nike filed a lawsuit against StockX in the Southern District of New York. Nike alleged that StockX’s “Vault” NFTs improperly utilized images of Nike footwear to sell tokens associated with physical shoes.

Nike contended that these NFTs were likely to mislead consumers, create false associations between products, and diminish the value of its trademarks.

StockX, however, maintained that its Vault NFTs were designed “to track ownership of frequently traded physical products” rather than to deceive customers. They argued that Nike’s lawsuit demonstrated a fundamental misunderstanding of the diverse applications of NFTs.

Subsequently, Nike amended its complaint to include allegations of counterfeit sneaker sales by StockX. This expansion of claims bolstered Nike’s trademark infringement case.

In a March 2025 ruling, Judge Valerie Caproni found in favor of Nike on several counts. The judge determined that StockX was liable for selling counterfeit goods linked to four pairs of shoes purchased by Nike’s investigators and 33 pairs bought by a customer named Roy Kim.

While this verdict left some claims unresolved and set the stage for a trial, the late August settlement abruptly concluded these proceedings.

Legal Implications and Industry Impact

A central issue in the Nike-StockX case was the classification of NFTs as “goods” under the Lanham Act, a stance affirmed by the US Ninth Circuit in 2025.

This settlement aligns with a broader judicial trend of applying traditional IP rules to NFTs, prompting platforms to reassess their business practices. For instance, StockX’s 2025 Brand Protection Report highlighted the company’s efforts to combat counterfeits, claiming it rejected $10 million worth of fake sneakers in 2024 through advanced authentication technologies.

The resolution has also influenced investment patterns in blockchain-based trademark protection. As brands explore supply chain tokenization, venture capital is flowing into startups developing decentralized verification systems. In 2025, institutional investors allocated $4.2 billion to “green NFTs” - environmentally conscious digital assets linked to real-world initiatives.

This case underscores the evolving landscape of digital assets and intellectual property rights, setting a precedent for future disputes in this rapidly changing field.