Judge scolds Nike, StockX for 'bickering' in counterfeit lawsuit

Judge scolds Nike, StockX for 'bickering' in counterfeit lawsuit

In a recent court filing, the judge who presided over Nike's lawsuit against StockX criticised both parties and urged them to 'work professionally and collaboratively in the future'.

The order ruled that StockX was entitled to the documents StockX requested related to Nike's internal investigation into counterfeiting.

The order stated that 'the court notes the bickering between the parties in their briefs and in their letters to the court have descended into unprofessional behavior in a way unbecoming of the experienced and knowledgeable counsel who are representing this case'.

The case has been long and complicated, but began in February 2022 with a suit filed by Nike alleging that the online retailer was selling NFTs displaying Nike shoes without permission.

StockX filed documents stating that it created NFTs which depicted physical Nike shoes and sold them on its website as part of a collection named StockX Vault NFT. This confused consumers and "deprived Nike its exclusive rights to use its trademarks in connection with this commercial medium."

Nike amended the original complaint after StockX responded that Nike's accusations 'lacked any merit'. Nike accused StockX of selling counterfeit Nike shoes, despite advertising these as '100% genuine'.

Nike and StockX then disagreed over whether they should both be required to provide internal communication documents relating to the allegedly fake shoes. Nike won with Caproni’s sustaining order.

In the past few years, the sneaker resale industry has grown to be a major economic force for the footwear industry. By 2030, the market is expected to reach a staggering amount of revenue. Nike's sales for the last fiscal year were $46.7 billion.

StockX, since Nike filed their suit, has changed the language of '100% authentic,' to a 'StockX Verified', and released detailed information about its process for verifying products, including how many it rejects because they "didn't meet verification standards."