Nike and StockX Settle NFT Trademark Dispute, Avoid October Trial

Nike and StockX have officially settled a long-running legal dispute over trademark use in sneaker-linked NFTs, bringing an end to a high-stakes court battle that has shaped how digital assets intersect with intellectual property rights.

The resolution, filed last Friday in New York federal court, halts a jury trial that had been slated for October and dismisses all claims with prejudice.

Nike and StockX Avoid Legal Blow with Last-Minute Settlement

The decision spares both companies from a potentially damaging courtroom verdict.

For StockX, the settlement eliminates the risk of being found liable for broader misuse of Nike’s brand. For Nike, it avoids the uncertainty of having its IP enforcement strategies scrutinized by a jury.

The conflict began in early 2022, when Nike accused the Detroit-based marketplace of trademark infringement over its “Vault” NFTs, which featured Nike sneakers.

According to Nike, the tokens misled consumers into thinking the company endorsed or was involved in the digital offerings.

StockX countered that the NFTs merely served as digital receipts tied to physical goods, not as standalone products.

Tensions escalated in May 2022 when Nike amended its complaint to allege that StockX had also sold counterfeit sneakers.

Those claims gained legal weight in March this year, when Judge Valerie Caproni ruled in Nike’s favor on part of the case.

The court found StockX liable for selling four fake pairs of Nike shoes to undercover investigators and an additional 33 pairs to a customer.

The remaining issues were left for a jury, until the parties reached their agreement last week.

In December last year, Nike-owned digital fashion and web3 studio RTFKT announced plans to wind down operations.

According to an announcement shared on RTFKT’s social media channels, its Web3 services will cease by the end of January 2025. The company cited a transition to preserving its legacy through an updated website showcasing its previous projects.

The company also faced a lawsuit from a group of investors who claimed the company’s abrupt shutdown of its digital collectibles venture, RTFKT, wiped out the value of their purchases and left them facing heavy losses.

The Sandbox Founders Exit as Animoca Assumes Full Control

As reported, Metaverse platform The Sandbox is undergoing a transformation following the departure of its co-founders and a majority takeover by Animoca Brands.

Co-founders Sébastien Borget and Arthur Madrid have stepped back from operational roles, with over half of the company’s workforce also let go.

Robby Yung, CEO of Animoca Brands, has been appointed as the new CEO of The Sandbox.

Borget remains involved as a public ambassador, while Madrid assumes a non-executive chairman position.

Behind the leadership shake-up is growing dissatisfaction with The Sandbox’s performance. Despite raising $300 million over the past eight years, the platform has failed to gain traction among users.

Daily active usage reportedly numbers in the low hundreds, with many flagged as bots, particularly from South America.

Its native token, SAND, has fallen more than 95% from its 2021 highs, with its market cap plummeting from $8 billion to around $700 million.

The post Nike and StockX Settle NFT Trademark Dispute, Avoid October Trial appeared first on Cryptonews.