Updated as of March 31, 2022
As a leading global platform for trading and consuming current culture products, StockX customers use the platform not only to sell or acquire physical products to wear or consume, but also to trade such physical products for investment purposes. Our recent introduction of non-fungible tokens (NFTs) to track ownership of frequently traded physical products is transforming the trading experience on our platform. StockX Vault NFTs are absolutely not “virtual products” or digital sneakers. Instead, the Vault NFT program draws on our longstanding commitment to access and disruption by leveraging our proven authentication process and high-security storage infrastructure to track ownership of physical products and save our customers time and money while reducing the environmental impact of repeated shipping.
Using NFTs in this manner is lawful and violates no legitimate right of any of the manufacturers of the underlying goods. Nike’s claims lack merit, disregard settled doctrines of trademark law (including those of first sale and nominative fair use), and show a fundamental misunderstanding of the various functions NFTs can serve. Contrary to trademark law, Nike’s position is that resellers of products are legally prohibited from accurately describing the physical products they seek to trade in a digital world. The use of images of Nike sneakers and descriptions of resale Nike products in connection with StockX Vault NFTs is nominative fair use. It is no different than major e-commerce retailers and marketplaces who use images and descriptions of products to sell physical sneakers and other goods, which consumers see every single day. As such, the use of NFTs to digitally track ownership of physical products is not only lawful, but also increases efficiency for and decreases costs to consumers, promotes sustainability, and should not be disturbed.
At StockX, our top priority is providing customers with the best experience possible. Second to that, is a commitment to innovation, and the Vault NFT program is a product of our remaining steadfast in that mission. We will continue to strive to provide our global customer community access to the products they love in tech-forward ways that suit their needs.
Originally published on February 8, 2022
The lawsuit filed against StockX lacks merit and is based on a mischaracterization of the service StockX offers through our NFT experience. Our Vault NFTs depict and represent proof of ownership of physical goods stored in our vault that customers can trade on our platform. We undoubtedly have the right to provide our customers with this new and innovative approach to trading current culture products on StockX, and plan to vigorously defend our position. StockX Vault NFTs are not digital or virtual sneakers. We do not state or imply that our Vault NFTs are associated with, sponsored by or officially connected to any third party brand. In fact, we clearly and expressly state the opposite. We are confident that our customers understand the difference between our Vault NFTs and the third-party products to which they correspond.
NFTs are a dynamic and growing part of today’s global commerce landscape, and while the NFT market is still fairly new, StockX Vault NFTs deliver real value for our customers as they help unlock new trading opportunities anchored by lower fees and storage capabilities. For years, StockX customers have traded a range of products on our website, trusting StockX to verify their authenticity and shipping products back and forth upon each trade. Now, Vault NFTs provide our customers with an exciting new, faster, cheaper and more efficient trading experience. Because each Vault NFT is tied to a physical good already stored in the StockX vault, a buyer no longer has to wait several days before they can resell, and they do not have to pay fees associated with multiple legs of shipping and physical authentication. Just as our platform does with physical goods, NFTs provide safe and secure access for our customers to buy and sell in the digital secondary market without costs, delays and risks that can be associated with physically shipping goods upon each trade.
At StockX we care deeply about providing the best experience possible for our customers. Unlocking access to current culture products – both physical and digital – is StockX’s mission, and we will continue to fight to provide such access to our customers.