Nike and Hermès File Lawsuits for Trademark Infringement as Fashion Collides With NFTs

Nike has filed a lawsuit against online sneaker reseller StockX, accusing the platform of selling unauthorized images of Nike shoes in the form of non-fungible tokens (NFTs). Nike alleges that StockX minted and marketed NFTs containing trademarked material without authorization, and it is seeking to block further sales and monetary damages.

In another case, luxury brand Hermès has taken legal action against Mason Rothschild for creating NFTs of its famous Birkin handbags called "MetaBirkins." Following a cease-and-desist letter from Hermès, the MetaBirkin NFTs were removed from the OpenSea marketplace.

As luxury fashion brands increasingly enter the NFT space, there will likely be greater scrutiny on NFTs that imitate their brands. Trace Schmeltz, co-chair of the Fintech Practice Group at law firm Barnes & Thornburg, anticipates that StockX may claim "fair use" in response to Nike's lawsuit, arguing that each NFT sold represents a digital version of a physical shoe purchased by customers.

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