The market for replica sneakers has witnessed a massive surge in recent years, significantly propelled by the rising influence of platforms like TikTok and Discord. Earlier this year, our investigation into the replica sneaker scene on TikTok uncovered a flourishing community ripe with profits. This included conducting interviews with prominent content creators involved in this space. Among them was Cedaz, a prominent figure in the sneaker replica space, who now finds himself at the center of a legal storm, sued by Nike.
Cedaz, whose real name is Eben Fox, and Nicholas Tuinenburg, the founder of the fashion brand Divide The Youth, have both been named in separate but interconnected lawsuits by Nike. These cases were first reported on by Zak Kurtz, owner of SneakerLegal. Nike has initiated legal battles against these two individuals for their alleged roles in extensive operations regarding the promotion and sale of counterfeit Nike products. These lawsuits, filed in U.S. courts, provide a detailed glimpse into the murky underworld of counterfeit goods and the lengths to which companies like Nike must go to protect their intellectual property. In a detailed examination, Nike has argued that Fox and Tuinenburg were knowingly and willfully engaged and instrumental in the sale and distribution of counterfeit Nike products. Central to both lawsuits is Nike's emphasis on its valuable trademarks and the need to maintain their integrity.
Nike's legal challenges in combating counterfeiting are partly attributed to the geographic positioning of key players in this market, such as PandaBuy, which operates out of China. This limitation has led Nike to target individuals like Fox and Tuinenburg, who are within their legal reach.
Court documents reveal that Eben and Nick, in collaboration with PandaBuy, created w2c.net, a website featuring a vast array of counterfeit Nike products. Additionally, Eben has been actively promoting these products through various channels, including Discord, TikTok, Reddit, and YouTube. Nike asserts that Fox's blatant misconduct has not only harmed Nike’s reputation and goodwill but has also inspired others to replicate his actions, further amplifying the damage.
Nike's legal team thoroughly investigated Fox’s Discord server, Blomi Squad, unveiling it as a hotspot for the sale of fake sneakers. In each lawsuit, Nike refers to these types of digital communities as “organized counterfeit trafficking communit[ies].” The server’s "BST" (Buy, Sell, Trade) channel even included a transaction fee of 7.5%, meaning Fox and his associates were likely “the recipients and beneficiaries of the “BST fee” for every sale that occurred via the Blomi Squad Discord server, including the sales of counterfeit Nike-branded goods.”
Reddit was also utilized by Fox with him (alongside Nick Tuinenburg and another seller, “gillyreps”) opening a community called “r/reps.” This subreddit is devoted to counterfeit goods, and unlike other communities that revolve around the same topic, this is intended to be “user-friendly” compared to their Discord servers.
Moreover, Cedaz’s YouTube channel features videos that guide viewers on purchasing replica products from overseas, directly implicating him in these illicit activities.
One shocking (pun-intended) instance involves a video titled “I Returned FAKE Nike Shoes To Nike... (SHOCKING),” where Cedaz is seen returning counterfeit Air Force 1s to a Nike store in Tampa. This act not only demonstrated his involvement in illegal activities but also inspired others to mimic such deeds. This behavior, as Nike argues, not only harms its brand reputation but also misleads the consumer base, potentially inspiring copycat counterfeiters and exacerbating the issue. Other content creators on YouTube replicated these actions, including “Keboooo,” who returned fake AF1s to JD Sports and credited Cedaz for the idea. Another YouTuber, “ThatboiEC,” returned a pair of AF1s to Nike and again credited Cedaz, stating, “I actually saw this by another YouTuber, Cedaz, so I wanna give my flowers [sic] where they're due. Shout out to Cedaz.”
Nike also highlights Fox's habit of wearing or displaying counterfeit Nike products with the intention of deceiving others into believing they are genuine. An example cited in the lawsuit is a video titled, "Giving FAKE Skating Shoes To PRO Skateboarders... | Tampa Pro 23," where Cedaz is seen at a skateboarding competition, intentionally misleading participants about the authenticity of the Nike products he showcased.
In Nick’s case, many of the same allegations are presented. What worsens his legal situation is his ownership of the brand Divide The Youth (DTY). Nike states that DTY utilizes Nike’s Trade Dress for the Dunk Low and provides examples in which DTY has sold products that mimic that of the Dunk. So, on top of facilitating the sale of fake/replica sneakers, Nick and his brand produce knockoff Nike products.
Nike's lawsuit alleges that both Cedaz and Nick have infringed upon Nike’s trademarks. Their actions have likely misled consumers and the general public regarding the origin and authenticity of the counterfeit products, potentially leading to a belief that these goods are approved or endorsed by Nike or that either individual is affiliated with the brand.
Under the “Prayers For Relief” section in each lawsuit, Nike is asking that Fox, Nick, and those working with them no longer be allowed to promote the sale of replica Nike products, engage in the sale of counterfeit Nike goods, or assist others in engaging in these illegal activities. Outside of these requests, Nike is also seeking punitive damages. The sportswear giant is looking to find out exactly how much Fox and Nick have profited from these endeavors and are seeking three times the amount they have earned. On top of that, Nike requests that both parties “deliver to Nike for destruction any and all counterfeit Nike-branded goods and Infringing Products.”
This lawsuit marks a significant move by Nike to protect its brand integrity and clamp down on the growing issue of counterfeit goods, particularly in the digital and social media spheres. While replica sneaker content on TikTok, Discord, and other digital platforms has significantly grown in recent years, Nike has not been ignorant of the fact this has been taking place. These lawsuits show that The Swoosh has been paying close attention for quite some time. Dates from the case indicate that Nike has been carefully and deliberately building this case over the last few years.
This is just the tip of the iceberg for the replica scene, and with Nike going after two of the biggest perpetrators, it’s likely we will see the sportswear giant continue to defend their trademarks and do what is necessary to stop counterfeit products. These lawsuits demonstrate the lengths to which companies like Nike must go to safeguard their intellectual property in the digital age. This legal stance underscores the company’s vigilance in protecting its brand against those who seek to exploit it for illegal gains. The outcomes of these lawsuits could set important precedents for how global brands tackle the ever-evolving challenge of online counterfeiting, particularly in an era where social media influencers wield significant power in shaping consumer behaviors and perceptions.
Fast Facts
- Nike has sued Eben Fox and Nicholas Tuinenburg for trademark infringement and has also alleged the two are part of extensive operations regarding the promotion and sale of counterfeit Nike products
- Both individuals have publicly made it clear they are connected to PandaBuy, an overseas agent that facilitates the sale of replica products
- Discord, Reddit, TikTok, and other social media platforms were utilized by both parties with Nike highlighting various detailed instances in which the two promoted and/or sold counterfeit Nike products
- Nike is requesting that Fox, Tuinenburg, and those working with them no longer be allowed to promote the sale of replica Nike products, engage in the sale of counterfeit Nike goods, or assist others in engaging in these illegal activities
- Nike also wants to find out exactly how much Fox and Tuinenburg have profited from these endeavors and are seeking three times the amount they have earned in punitive damages
- Nike requests that both parties “deliver to Nike for destruction any and all counterfeit Nike-branded goods and Infringing Products”
- These lawsuits show that Nike has been paying close attention to the growing popularity of replica sneakers online
