StockX, an online reseller marketplace, has responded to Nike's accusations that it is selling counterfeit sneakers on its platform.
The online reseller has questioned why Nike waited until last month to add its accusations to a lawsuit it filed in February regarding StockX's Vault NFTs. StockX has likewise pointed out that Nike previously commended them for their authentication process.
StockX Fires Back at Nike
StockX has a lot of things to say about Nike's accusations that it is selling counterfeit sneakers in its online marketplace.
According to a report by The Verge, StockX calls Nike's accusations as "nothing more than a failed attempt to bolster its still meritless claims" in a court filing. A report by CNBC says that it will be filed in New York City on Monday.
StockX has also pointed out that Nike once praised the platform for its authentication process. The Verge notes that StockX has "made a name for itself by promising each shoe sold on its site is the real deal." Per the report, each sneaker is said to be inspected by hand along with a machine learning technology that is enhanced by artificial intelligence (AI).
Nike's NFT Lawsit Against StockX
The legal battle between StockX and Nike began in February when the latter filed a lawsuit over StockX's Vault NFTs.
The NFT series, which was launched in January, gives customers the opportunity to "buy NFTs tied to a physical product akin to a digital receipt," according to The Verge. Eight of these NFTs part of the series are linked to Nike sneakers.
Nike's lawsuit claims that StockX infringed on its trademarks. In its court filing, StockX clarified that its NFTs are not digital sneakers, arguing that the NFTs are actually tied to physical goods.
Nike has argued otherwise. This is because once you purchase a Vault NFT, the physical product remains in the StockX inventory until someone claims it. In contrast, the NFT can be resold over and over again. Nike argues that this makes the NFTs a separate product altogether.
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Nike Amends the Lawsuit Filed Against StockX
The popular sneaker and apparel brand amended its lawsuit last month, adding that it purchased four pairs of counterfeit sneakers from StockX. These sneakers, per CNBC, were verified as authentic by the online marketplace.
In its court filing, StockX questions why Nike waited to add the claims regarding the fake sneakers to its lawsuit. CNBC's report also notes that the online marketplace has acknowledge that counterfeits have the possibility of get through the vetting process, adding that it has a refund policy for such "rare" instances.
