Nike Sues StockX Over Counterfeit Sneakers

Nike Sues StockX Over Counterfeit Sneakers - C-SQUARE

The ongoing legal dispute between Nike and StockX heated up toward the end of 2022. The reseller platform was being sued by Nike for allegedly selling fake shoes and having a suspect authentication system. Recent court records have been made public as the Nike v. StockX legal saga progresses, revealing that a reseller once acquired 38 pairs of fake Air Jordan 1s from the website.


A reputable figure in the sneaker community with a well-known Twitter handle, @Sockjig, claimed to have exclusively "spoken to the collector/reseller involved in the Nike x StockX case,". In anticipation of holding them for the future and flipping them, he purchased numerous University Blue, Mocha, and Hyper Royal Jordan 1s on StockX when the price had dropped. He purchased a total of 38 pairs. According to the court document, the shoes had been "authenticated" by the resale platform.


Nike Sues StockX Over Counterfeit Sneakers


It's significant to note that since the scandal broke in November 2022, the company has deleted the word "authenticated" from its pages.


Nike visited that reseller in July and verified that at least 38 pairs of shoes the customer had purchased from StockX had been fake. The buyer later returned all of the pairs to StockX for a complete refund. Right now, StockX's official position is that "once an order is created, we are unable to offer returns, exchanges, or swaps. If you decide you don't want to keep the item any longer, you can always resell it on our platform.”


StockX issued a statement of their own in response to the news of Nike's alleged counterfeit claims, vehemently disputing them:


Nike Sues StockX Over Counterfeit Sneakers


“We take customer protection extremely seriously, and we’ve invested millions to fight the proliferation of counterfeit products that virtually every global marketplace faces today. Nike’s latest filing is not only baseless but also is curious given that their own brand protection team has communicated confidence in our authentication program, and that hundreds of Nike employees – including current senior executives – use StockX to buy and sell products. This latest tactic amounts to nothing more than a panicked and desperate attempt to resuscitate its losing legal case against our innovative Vault NFT program that revolutionizes the way that consumers can buy, store, and sell collectibles safely, efficiently, and sustainably. Nike’s challenge has no merit and clearly demonstrates their lack of understanding of the modern marketplace.”


Nike has been accused by StockX of "stonewalling" in order to draw attention away from its own alleged wrongdoings and in doing so has issued an excessive number of evidence requests in an effort to "bury" StockX and their legal team.


It claims that Nike has not presented enough pre-trial evidence and asks the court to reject the admission requests because they are "duplicative, burdensome, and inappropriate". It asserts, in particular, that the sportswear company with headquarters in Oregon has not addressed the issue of allegedly unlicensed Nikes being sold on the secondary market or provided details on how it distinguishes fake goods.