Nike and StockX settle trademark dispute over NFTs and counterfeit sneakers

In a significant development for the tokenized collectible market, Nike and StockX have settled a three-year-long case over sneaker-linked NFTs and trademark misuse in New York federal court. The settlement was reached in March 2025, cutting short the plans for a trial scheduled for October.

The case began in February 2022 when Nike accused StockX of trademark infringement and dilution, alleging unauthorized use of Nike sneaker images for NFTs. By May 2022, Nike had amended its complaint to allege that StockX was also selling counterfeit sneakers.

In March 2023, Judge Valerie Caproni granted Nike partial summary judgment, finding StockX liable for distributing counterfeit goods tied to four pairs of shoes sold to Nike's investigators and 33 pairs sold to a customer named Roy Kim.

StockX countered that its Vault NFTs were designed to track ownership of frequently traded physical products, not to mislead consumers. However, the settlement signals less room for gray-area resale platforms and more focus on brand-approved NFTs, according to analysts.

Dan Dadybayo, research and strategy lead at Unstoppable Wallet, believes the Nike-StockX settlement reinforces these points. Hank Huang, CEO of Kronos Research, agrees with Dadybayo's points, stating that NFTs are no longer a legal gray area, and trademark rights have become essential for building credible, compliant platforms.

The closure of RTFKT in December is seen as a key moment for the tokenized goods market. RTFKT was a prominent phygital studio known for blending NFTs with physical goods, such as Nike Cryptokicks, Clone X, and Murakami, as well as experimental sneaker drops. The closure of RTFKT shows how fragile hybrid models are when brand control and IP compliance aren't crystal clear.

Nike argued that the NFTs were likely to confuse consumers, create a false association, and dilute its trademarks. The settlement spared StockX the risk of a damaging verdict, while allowing Nike to avoid the uncertainty of putting its brand protection strategy before a jury.

As the tokenized collectible market enters a more disciplined phase, brands are expected to have less tolerance for gray-area resale platforms. NFTs functioning as receipts for physical goods will survive, but tokens drifting into standalone collectibles without brand approval will face legal pressure.