UPDATE: StockX has provided Sole Retriever with a statement regarding the latest updates in its lawsuit with Nike.
"Nike’s claims are completely misguided. Contrary to their allegations, StockX is a leader in the fight against counterfeiting, a pervasive issue affecting brands globally. It’s why verification has been at our core since inception, and because of our leadership in this space Nike has previously recommended StockX to its customers, partnered with StockX, and praised StockX as “a good actor.” We have invested millions of dollars in technology, training, and tooling to deliver on our commitment to our customers, and we stand behind our verification process with our Buyer Promise.
The products in question in this case amount to a mere 0.0004% of the 17.8 million Nike sneakers StockX reviewed while this litigation was ongoing. Compare that to the more than $80,000,000 of suspected counterfeit sneakers alone that StockX has prevented from being sold on our platform. StockX has long done our part to prevent bad actors from trading on our platform, but we can’t do it alone. It’s a shame that rather than work with us to fight fakes, Nike has opted to use its resources to pursue meritless, expensive litigation and persecute a company that has long worked to fight the prevalence of counterfeits."
The original story continues below:
In 2022, Nike filed a case in the Southern District of New York against resale giant StockX over its Vault NFT program. Since then, we’ve seen several updates from both parties, including questions regarding StockX’s authentication process and an order from the court that forced the company to reveal its process to Nike. In the latest documents from the case, filed back in August but recently unsealed, Nike states that StockX is peddling counterfeit sneakers and its false advertising is “insidious.” Thus, Nike is asking the court to rule in their favor on the claims of willful counterfeiting and false advertising before the trial starts.
Nike doesn’t hold back on its claims or wording regarding StockX, going as far as to say the company is “a global safe haven for counterfeiters to sell unknown numbers of fake ‘Nike’ footwear, often the hottest Nike styles, for hundreds, sometimes thousands, of dollars a pair.” Providing some evidence for these claims, The Swoosh hired investigators to purchase sneakers from StockX, determining the four products were all fake, counterfeit sneakers. Alongside Nike’s investigations, Roy Kim, a sneakerhead who bought over 60 pairs of sneakers from StockX, was found to have been sold 38 pairs of fake sneakers. Nike even names infamous reseller Zadeh Kicks, whose Ponzi scheme rocked the resale world in 2023, as having purchased fake sneakers through StockX. In fact, these recent filings reveal that Zadeh Kicks was Stockx's "largest buyer."
Further allegations are brought against StockX in the filing, including that StockX’s actions in passing counterfeit Nike products as authentic were intentional. According to Nike, “StockX’s pre-lawsuit internal documents admit to the sale of hundreds of fake products,” and that “StockX blames the manufacturer (i.e., Nike) for approving a ‘defective’ product for retail.”
All of these forces combined, at least according to Nike’s claims, confuse the consumer into believing that every Nike product purchased is authentic. Therefore if someone receives a fake sneaker it can lead to, “(1) lost sales, (2) negative consumer feedback to Nike and through social media platforms, and (3) harm to Nike’s business partners and/or affiliates.”
In November 2022, StockX removed the term “100% Authentic” and instead marks items as “StockX Verified.” According to their landing page that explains their authentication process, “StockX Verified is our own designation and not endorsed by any brands sold on StockX.” Clearly, as this change occurred after Nike first filed its suit, StockX realized that the designation “100% Authentic” can be misinterpreted by the consumer.
As of now, we have no update on how the judge and court ruled on Nike’s motion for partial summary judgment. Even if this portion of the case is resolved, Nike and StockX still have to battle it out in regards to the trademark infringement claims for its Vault NFT program. Once more information is available, we’ll be sure to update you on our socials. For updates on the latest releases, raffles, news, and more in the sneaker world, download the Sole Retriever mobile app.
Sneakerhead from South Florida who turned his passion into a career. Concerts, music, trying new restaurants, and catching the latest movies are some of the things I enjoy when not writing for Sole Retriever. Email: nick@soleretriever.com
