Amended Complaint Nike V StockX

Case 1:22-cv-00983-VEC Document 33 Filed 05/10/22 Page 1 of 1
UNITED STATES DISTRICT COURT

FOR THE SOUTHERN DISTRICT OF NEW YORK
|
NIKE, INC., | Civil Action No.: 1:22-cv-00983-VEC
Plaintiff, |
|
v. |
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STOCKX LLC, |
Defendant. |
|
DECLARATION OF TAMAR Y. DUVDEVANI IN SUPPORT OF NIKE INC.’S

MOTION FOR LEAVE TO FILE A FIRST AMENDED COMPLAINT
I, Tamar Y. Duvdevani, declare as follows:
1. I am a partner at DLA Piper LLP (US) and attorney of record for Plaintiff Nike,
Inc. (“Nike”). I submit this Declaration in support of Nike’s Motion for Leave to File a First
Amended Complaint and to place before the Court Nike’s proposed First Amended Complaint
and, pursuant to this Court’s Individual Practices, a redlined version of the proposed First
Amended Complaint comparing the revisions made to Nike’s original Complaint.
2. Attached as Exhibit A is a true and correct copy of the proposed First Amended
Complaint.
3. Attached as Exhibit B is a true and correct copy of a redlined version of the
proposed First Amended Complaint comparing the revisions made to Nike’s original Complaint
filed on February 3, 2022 (Dkt. No. 1).
I declare under penalty of perjury under the laws of United States of America that the
foregoing is true and correct.
Executed on May 10, 2022 in New York, New York.
By: /s/ Tamar Y. Duvdevani

Tamar Y. Duvdevani
Case 1:22-cv-00983-VEC Document 33-1 Filed 05/10/22 Page 1 of 73
Exhibit A

NIKE, INC.,
Plaintiff,
Case No. 1:22-cv-000983-VEC
v.
[PROPOSED] FIRST AMENDED
STOCKX LLC, COMPLAINT
Defendant.
JURY TRIAL REQUESTED
Plaintiff Nike, Inc. (“Nike” or “Plaintiff”) for its First Amended Complaint (“FAC”)
against Defendant StockX LLC (“StockX” or “Defendant”) for trademark infringement, trademark
dilution, counterfeiting, false advertising, and related causes of action alleges as follows:
PRELIMINARY STATEMENT
1. On February 3, 2022, Nike filed its original Complaint (Plaintiff Nike, Inc.’s
Complaint, February 3, 2022 [Dkt. No. 1] (“Complaint”)) in this action because of Defendant
StockX’s unauthorized and infringing use of Nike’s famous marks in connection with StockX’s
entry into the Non-Fungible Token market. Non-Fungible Tokens or “NFTs” have quickly
become pervasive in their use by brand owners seeking to enter the nascent marketplace of virtual
or digital products connected to a token on the blockchain. NFTs are commonly understood to be
blockchain-based virtual products that can be collected, sold, and traded in the marketplace. They
are an exciting way for brands to interact with their consumers in and out of the “metaverse,” and
diverse commercial applications of NFTs have emerged throughout the past two years. Far more
than a fleeting trend, NFTs are part of the future of commerce.
2. Unfortunately, novel product offerings, burgeoning technologies, and gold rush
markets tend to create opportunities for third parties to capitalize on the goodwill of reputable
brands and create confusion in the marketplace. NFTs are, not surprisingly, no exception to the
rule, and this new frontier has swiftly become a virtual playground for infringers to usurp the
goodwill of some of the most famous trademarks in the world and use those trademarks without
authorization to market their virtual products and generate ill-gotten profits.
3. Enter Defendant StockX, the operator of an online secondary market platform for
the resale of various brands of sneakers, apparel, luxury handbags, electronics, and other
collectible goods that purports to provide authentication services to its customers. According to
StockX’s Answer to Nike’s Complaint, StockX is different than other online marketplaces because
it “uses a proprietary, multi-step authentication process for every product sold on its platform.
This process ensures that items traded on StockX conform to the product descriptions and
condition standards advertised by StockX, and that the products offered for sale are what they
claim to be, and are not counterfeit, defective, or used—meaning StockX’s customers can trust
that transactions made through StockX are safe.” (Defendant StockX LLC’s Answer, March 31,
2022 [Dkt. No. 21] (“Answer”) at 2.)
4. StockX publicly touts the fact that Nike products drive far more sales on its e-
commerce platform than any other brand, and StockX advertisements and social media accounts
are teeming with images of Nike goods. StockX is even marketing and selling Nike goods on its
secondary market platform before Nike releases those goods to the marketplace in the first
instance. See https://stockx.com/new-releases/sneakers. StockX built its secondary market
business by exploiting the immense goodwill and reputation that Nike has amassed through many
years as the world’s leading designer, developer, marketer, and seller of athletic footwear and
apparel. Now, recognizing firsthand the immense value of Nike’s brands, StockX chose to enter
the lucrative NFT market, not by taking the time to develop its own intellectual property rights,
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but rather by blatantly freeriding, almost exclusively, on the back of Nike’s famous trademarks
and associated goodwill.
5. Specifically, without Nike’s authorization or approval, StockX is “minting” NFTs
that prominently use Nike’s trademarks, marketing those NFTs using Nike’s goodwill, and selling
those NFTs at heavily inflated prices to unsuspecting consumers who believe or are likely to
believe that those “investible digital assets” (as StockX calls them) are, in fact, authorized by Nike
when they are not. Unlike its e-commerce business which caters to buyers and sellers of goods
originating from various companies, StockX launched its NFT venture almost exclusively with
Nike-branded NFTs, yet none of those NFTs originates from Nike. Examples of StockX’s
infringing NFTs appear below:
6. StockX claims that its “100% Authentic” Nike-branded “Vault NFTs” do no more
than track ownership of a specific physical Nike product that StockX has purportedly authenticated
using its “proprietary, multi-step authentication process” and is safely securing in its “vault.”
StockX’s post hoc rationalization that it is simply selling “claim tickets” with no value apart from
the physical shoe is belied by its own statements, as well as the fact that those purported “claim
tickets” have sold for thousands of dollars above the price of the physical shoe that said ticket
supposedly claims. Those statements—some of which StockX has modified or removed from its
platform since this action was filed—reflect the fact that StockX’s Nike-branded Vault NFTs,
whose purchasers can trade or collect and admire in their “NFT Portfolios,” are, in fact, new virtual
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products that StockX has bundled with additional StockX services (e.g., “Vault Services”) and
unspecified benefits (e.g., “exclusive access to StockX releases, promotions, events”). Nike does
not sell StockX’s services or exclusive access to such benefits. Yet StockX’s new virtual products
have been created, marketed, offered for sale, and sold by StockX using Nike’s trademarks without
Nike’s consent. And, according to StockX, it is “just getting started.” See
https://stockx.com/about/stockx-launches-vault-nfts/.
7. Just as troubling have been other StockX statements that appear to negate StockX’s
primary claim that a Vault NFT can be readily traded in for the associated physical shoes stored in
a StockX facility. For example, while StockX initially claimed that Vault NFT owners may
“redeem” the NFT and take possession of the shoes (for an additional fee), it also sold the
infringing Nike-branded NFTs while stating that “the redemption process is not currently
available” to NFT owners. StockX also, shockingly, sold the infringing Nike-branded NFTs while
retaining the right to unilaterally redeem a Vault NFT for a so-called “Experiential Component,”
and take away the NFT, completely depriving the Vault NFT owner of possession of the shoes that
are supposedly connected to the NFT. In the short time since Nike initiated this action, StockX
has repeatedly revised its statements to consumers, hoping to erase some of the unsavory conduct
that Nike’s Complaint identified. Those changes have done nothing to resolve Nike’s claims.
Regardless, upon information and belief, by that point StockX had already offered for sale and
sold through its initial inventory of 558 infringing Nike-branded Vault NFTs. StockX continues
to earn revenue on secondary trades of those infringing Nike-branded NFTs and, unless halted,
StockX will continue minting, marketing, and selling thousands of additional infringing Nike-
branded Vault NFTs.
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8. Nike did not approve of or authorize StockX’s Nike-branded Vault NFTs. Those
unsanctioned products are likely to confuse consumers, create a false association between those
products and Nike, and dilute Nike’s famous trademarks. Indeed, consumers are already
questioning whether Nike authorized StockX to sell its infringing NFT products, asking how
StockX received “the licensing to sell NFTs with [N]ike branding.” See Paragraph 101, infra.
StockX’s misappropriation of Nike’s famous trademarks and goodwill to buoy its entry into the
lucrative NFT and digital collectible market deprives Nike of its exclusive right to use its marks
in connection with this new commercial medium. In addition, the Vault NFTs’ inflated prices and
murky terms of purchase and ownership, as discussed further below, have already led to public
criticism of StockX and allegations that the Vault NFTs are a scam. StockX’s prominent use of
Nike’s trademarks in connection with these dubious virtual products has already generated
negative associations with Nike in a way that harms Nike’s reputation and the immense goodwill
that Nike has amassed in its brands. Consumers have even attributed StockX’s conduct to Nike,
with one consumer expressing that the Vault NFTs are “just a stupid scam for Nike to make
money.” See Paragraph 103, infra (emphasis added).
9. Despite StockX’s prominent use of Nike’s trademarks in connection with the Vault
NFTs, Nike has no control over the quality of the Vault NFTs whatsoever. Nike has no say in how
many Vault NFTs bearing its trademarks are released, where the Vault NFTs are released and
traded, when the Vault NFTs are released, how the Vault NFTs are released, traded, or redeemed,
and at what price the Vault NFTs are sold.
10. Nike’s widely publicized December 13, 2021 acquisition of RTFKT, a digital art
and collectible creative studio, and Nike and RTFKT’s very recent launch of the highly anticipated
and revolutionary MNLTH and CryptoKicks™ NFTs, demonstrate Nike’s recent investment in
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NFT technology and services and its sophistication in the NFT space. Prior to these recent
developments, however, Nike has been using its famous trademarks in connection with virtual
goods and digital applications for years. Given Nike’s longstanding use in this space, StockX’s
unauthorized and unapproved branding of Vault NFTs with Nike trademarks is all the more likely
to confuse consumers, create a false association between the parties, jeopardize the capacity of
Nike’s famous marks to identify its own digital goods in the metaverse and beyond, and harm
Nike’s reputation through an association with inferior digital products.
11. As noted, StockX has justified its minting and sale of Nike NFTs by claiming that
the NFTs are associated with vaulted Nike shoes StockX has “authenticated” using a “proprietary,
multi-step authentication process” to ensure “that the products offered for sale are what they claim
to be, and are not counterfeit, defective, or used.” (Answer at 2.) StockX’s defense to Nike’s
Complaint has thus brought to the forefront its “100% Verified Authentic” claim, “proprietary,
multi-step authentication process,” and claim that “StockX’s customers can trust that transactions
made through StockX are safe.” (Id.) To be sure, given the inflated prices of these so-called
“claim tickets,” consumers should be able to trust to a certainty that the vaulted Nike shoes
purportedly associated with the Nike-branded NFTs are not counterfeit.
12. Notwithstanding StockX’s repeated guarantees that every item sold through its
platform is “100% Verified Authentic,” since December 2021 and continuing through the filing of
this action, Nike has obtained from StockX four pairs of purportedly “authenticated” Nike-branded
shoes that Nike has verified are, in fact, counterfeit. Those four pairs of counterfeit shoes were all
purchased within a short two-month period on StockX’s platform, all had affixed to them StockX’s
“Verified Authentic” hangtag, and all came with a paper receipt from StockX in the shoe box
stating that the condition of the shoes is “100% Authentic.” StockX’s refusal to accept returns of
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purportedly “100% Verified Authentic” products purchased through its platform make it all the
more important for consumers to be able to absolutely trust that the Nike shoes purchased through
StockX are not counterfeit.
13. Nike has no visibility into the StockX “vault” and whether any Nike shoes
contained therein are counterfeit. However, at least one of the four counterfeit pairs of Nike shoes
that Nike obtained from StockX is, in fact, a counterfeit pair of Air Jordan 1 Retro High OG in the
Black/Varsity Red-White colorway. StockX depicts the same shoe on one of the eight Nike-
branded NFTs for sale on StockX’s platform, which is also currently StockX’s top-selling NFT by
total volume sold:
14. Given StockX’s statements that its “vaulted” shoes are sourced from its
marketplace and undergo the same “proprietary multi-step authentication process” as the shoes
Nike recently discovered were counterfeit, Nike is all the more concerned that StockX has linked
the infringing Nike-branded NFTs to counterfeit goods and sold those “claim tickets” to fake shoes
at heavily-inflated prices to consumers who had no opportunity to inspect the shoes before
reselling the NFT to another unsuspecting consumer.
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15. For these reasons, Nike supplements and amends its Complaint to include
additional causes of action for counterfeiting and false advertising, and requests that the Court
swiftly and permanently stop StockX from continuing to sell Vault NFTs bearing Nike’s famous
marks, selling counterfeit Nike goods, and making false and/or misleading claims regarding the
purported authenticity of those goods.
THE PARTIES
16. Nike is a corporation organized under the laws of the State of Oregon with a
principal place of business at One Bowerman Drive, Beaverton, Oregon 97005.
17. On information and belief, StockX LLC is organized as a Michigan LLC with its
principal place of business located at 1046 Woodward Avenue, Detroit, Michigan 48226. StockX
LLC is an online marketplace and reseller of sneakers, streetwear, electronics, luxury handbags,
and other collectibles. StockX maintains various offices and/or facilities located in New York,
California, and Oregon, including a store and drop-off facility located at 237 Lafayette Street, New
York, New York 10012.
18. On information and belief, StockX is the owner and operator of https://stockx.com
(the “StockX Website”) and StockX mobile application (the “StockX App”), where StockX
conducts, inter alia, its online commercial activities.
JURISDICTION AND VENUE
19. This action arises under the trademark, anti-dilution, counterfeiting, and false
advertising laws of the United States, 15 U.S.C. § 1051, et seq., and under statutory and common
law unfair competition. This Court has subject matter jurisdiction at least under 15 U.S.C. § 1121
and 28 U.S.C. §§ 1331 and 1338 because this action arises under federal trademark law. This
Court has supplemental jurisdiction over the remaining claims pursuant to 28 U.S.C. § 1367.
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20. This Court has personal jurisdiction over StockX because StockX has committed,
and continues to commit, acts of infringement, dilution, counterfeiting, and false advertising in
this District, has conducted, and continues to conduct, business in this District through the StockX
Website, StockX App, and a physical store, offices and/or facilities located in this District, and/or
has engaged in continuous and systematic activities in this District.
21. Personal jurisdiction is proper pursuant to N.Y. C.P.L.R. § 302(a) because StockX
regularly conducts, solicits, or transacts business in New York and in this District. StockX created
the StockX Website and StockX App, which are accessible to consumers in New York, and direct
false and/or misleading claims, counterfeit Nike goods, and the unauthorized and infringing uses
of Nike’s trademarks into New York and this District. StockX targets New York consumers by
operating the StockX Website and StockX App, by operating a physical store and offices and/or
facilities in New York, by employing employees in New York, and by advertising, selling, and
offering for sale StockX Vault NFTs through the StockX Website, StockX App, and related social
media accounts. Moreover, StockX is actively recruiting employees for several open positions
located in New York, New York, including a Director, Real Estate, a Sr. Engineering Manager –
NFT and Checkout, a Senior Manager, NFT Partnerships, and a Technical Lead – Notifications.
22. Venue is proper in this District pursuant to 28 U.S.C. § 1391(b) because StockX
conducts and continues to conduct a substantial and significant amount of business in this District,
a substantial part of the events giving rise to these claims arose in this District, and customer
confusion is likely to occur in this District. Moreover, on information and belief, the locus of
StockX’s Vault NFT and Web3 initiative appears to be in this District. For example, StockX’s
Director, Innovation along with the lead software engineer responsible for developing and
launching StockX’s NFT offering are, on information and belief, located in New York. Moreover,
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StockX’s January 18, 2021 announcement of its Vault NFT offering was issued by its Editorial
Director based in New York City. See https://stockx.com/news/introducing-nfts-on-stockx/.
StockX is also actively recruiting in this District for employees to join its NFT and Web3 program.
As just one example, this year through the filing of this action StockX had postings for the
following senior positions located in New York: Sr. Engineering Manager – NFT and Checkout;
and Senior Manager, NFT Partnerships.
FACTUAL BACKGROUND
NFTs and Blockchain
23. While blockchains have myriad actual and potential uses, a primary use is to serve
as an ecosystem and ledger for blockchain-based assets, like cryptocurrencies (such as Bitcoin
(BTC) and Ether (ETH)) and NFTs. Much like banks track ownership of money in bank accounts
and process transfers from one account to another, storing the information privately, blockchain
technology enables the transfer of ownership of cryptocurrencies and NFTs between accounts,
storing the information of the transfer of ownership in blocks of data visible for all to see. A
distinguishing and touted feature of blockchains is decentralization. Unlike bank or other asset
ledgers, which are typically maintained by one or more larger entities, blockchains can be
maintained by innumerable individuals and entities, acting relatively independently but
participating in a coordinated ecosystem. Today there exist many blockchains, the largest of which
supports the Bitcoin cryptocurrency, while the second largest of which, Ethereum, supports a much
broader set of assets, including both the Ether cryptocurrency and NFTs that are stored and traded
on the Ethereum blockchain network.
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24. Many blockchain-based assets, like cryptocurrencies, are “fungible.” Like money
in a bank account, each individual coin (or “token”) is not distinguishable from others and is
divisible. For this reason, cryptocurrencies may function as a medium of exchange.
25. By contrast, certain tokens, referred to as “non-fungible tokens” or “NFTs,” are
both indivisible and uniquely identifiable. Their movement can be tracked from one blockchain
address to another via smart contracts. This feature makes it possible to use NFTs to track
ownership or licensed rights over assets, similar to a certificate of ownership or real estate title.
26. NFTs have been widely used to track ownership over rights (often a limited license
for personal use) to a new type of digital collectible, which may be a digital photograph, video,
artwork, sound recording, avatar, digital clothing, footwear and other products, or other type of
media. These NFT collectibles can be bought, sold, resold, and generally traded on various
platforms.
27. While such NFT collectibles have existed for years, beginning in early 2021 interest
exploded. Many prominent apparel and consumer goods brands have successfully launched and
sold NFT collections, incorporating their trademarks, trade dress, and other intellectual property
into artwork associated with each NFT. These NFTs have taken many different forms but have
always closely connected the trademark owner with the digital asset. As further discussed below,
Nike is one such market entrant.
Nike’s Business and Valuable Trademark Rights
28. Nike’s principal business activity is the design, development, and worldwide
marketing and selling of athletic footwear, apparel, equipment, accessories, and services.
29. As a result of decades of Nike’s advertising, promotional, and marketing efforts,
Nike has established itself as a multibillion-dollar brand and the world’s leading designer,
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marketer, and distributor of athletic footwear and apparel products which are sold in connection
with Nike’s famous trademarks. In addition to spending significant amounts in support of
advertising and promotion of its products and services, Nike conducts successful marketing
campaigns across various social media platforms, including Facebook, Twitter, YouTube,
Instagram, TikTok, and Snapchat, to further promote Nike’s products, services, brands, and
trademarks.
30. Nike and its brands have achieved widespread recognition and fame throughout the
United States and the world. Among the purchasing public, Nike’s products and services are
instantly recognizable and are seen as high-quality, innovative, and dependable.
31. Nike is the owner of the right, title, and interest in and to, inter alia, the following
trademarks registered on the Principal Register of the United States Patent and Trademark Office
(collectively, the “Asserted Marks”):
Reg. No. Title Trademark Design Reg. Date Classes

1,370,283 AIR JORDAN AIR JORDAN 11/12/1985 25- Clothing,
(word mark) footwear
3,725,535 Air Jordan & 12/15/2009 25- Clothing,
Wings footwear,
Design*1 headgear
3,780,236 DUNK DUNK 4/27/2010 25- Footwear
(word mark)
3,627,820 JUMPMAN JUMPMAN 9/11/2007 25- Clothing,
(word mark) footwear,
headgear
1,558,100 JumpMan 9/26/1989 25- Clothing,
Design Footwear
1
* indicates unofficial, descriptive title.
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Design footwear,
headgear
18- Leather
and
imitations of
leather
978,952 NIKE NIKE 2/19/1974 25- Clothing,
headgear
1,214,930 NIKE NIKE 11/2/1982 25- Footwear
(word mark)
1,243,248 NIKE NIKE 6/21/1983 42- Retail
(word mark) footwear and
apparel
services
6,124,779 NIKE NIKE 8/11/2020 35- Retail
(word mark) store services
and on-line
retail store
services
1,238,853 NIKE & 5/17/1983 42- Retail
Swoosh footwear and
Design* apparel
services
1,325,938 NIKE & 3/19/1985 25- Footwear
Swoosh
Design*
5,286,596 NIKE AIR NIKE AIR VAPORMAX 9/12/2017 25- Footwear

VAPORMAX (word mark)
977,190 Swoosh Design 1/22/1974 25- Footwear
1,264,529 Swoosh Design 1/17/1984 42- Retail

footwear and
apparel
services
1,323,343 Swoosh Design 3/5/1985 25- Footwear
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store services
and on-line
retail store
services
32. The above U.S. registrations for Nike’s Asserted Marks are valid, subsisting,
unrevoked, uncancelled, and in full force and effect.
33. Pursuant to 15 U.S.C. § 1065, of Nike’s Asserted Marks, the following federally
registered Nike trademarks are incontestable and constitute prima facie evidence their validity,
Nike’s ownership, and Nike’s exclusive right to use these marks:
a. Reg. No. 1,370,283 (AIR JORDAN word mark)
b. Reg. No. 3,725,535 (Air Jordan & Wings Design mark);
c. Reg. No. 3,780,236 (DUNK word mark);
d. Reg. No. 3,627,820 (JUMPMAN word mark);
e. Reg. No. 1,558,100 (JumpMan Design mark);
f. Reg. No. 978,952 (NIKE word mark);
g. Reg. No. 1,214,930 (NIKE word mark);
h. Reg. No. 1,243,248 (NIKE word mark);
i. Reg. No. 977,190 (Swoosh Design mark);
j. Reg. No. 1,264,529 (Swoosh Design mark);
k. Reg. No. 1,323,343 (Swoosh Design mark);
l. Reg. No. 1,238,853 (Swoosh Design mark); and
m. Reg. No. 1,325,938 (Swoosh Design mark).
34. Nike also owns extensive common law rights in the Asserted Marks for use in
connection with Nike’s goods and services. Nike uses the Asserted Marks on or in connection
with many of its products and services.
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35. Nike’s Asserted Marks identify, in the United States and throughout the world,
high-quality products and services designed, produced, and offered by Nike.
36. Nike intends to continue to preserve and maintain its rights in the Asserted Marks.
Nike has continuously used the Asserted Marks in interstate commerce in connection with the sale,
distribution, promotion, and advertising of genuine Nike goods and services since their respective
dates of first use as noted on the federal trademark registration certificates. And, as discussed
further below, Nike has also used the Asserted Marks in connection with virtual products and
intends to further expand such use as reflected in its pending trademark applications.
37. As a result of continuous and long-standing promotion, substantial sales, and
consumer recognition, Nike has developed powerful trademarks rights, built substantial goodwill
in the Asserted Marks, and has never abandoned that goodwill. As a result, Nike’s Asserted Marks
have become distinctive and “famous” within the meaning of Section 43(c) of the Lanham Act, 15
U.S.C. § 1125(c).
38. Having distinctive trademarks that are readily identifiable is an important factor in
creating and maintaining a market for Nike’s products, in identifying Nike and its brands, and in
distinguishing Nike’s products from the products of others.
39. Nike maintains strict quality control standards for products bearing the Asserted
Marks. Genuine Nike products bearing the Asserted Marks are inspected and approved by Nike
prior to distribution and sale.
40. Nike also maintains strict control over the use of the Asserted Marks in connection
with its products so that the company can maintain control over its reputation and goodwill. Nike,
for example, carefully determines how many products bearing the Asserted Marks are released,
and when, where, and how those products are sold.
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Nike’s Activities in the Virtual Products Market
41. Nike has used the Asserted Marks in connection with a variety of physical goods
and associated services for decades. Nike has also for some time incorporated the Asserted Marks
into its virtual products. For example, in October 2019, Nike, through its SNKRS mobile
application, partnered with 2K Sports, makers of the NBA 2K basketball videogame franchise, to
offer “Gamer Exclusives,” limited edition digital and physical Nike sneakers that NBA 2K20
players can unlock through gameplay. See https://news.nike.com/news/nba-2k20-x-nike-gamer-
exclusives.
42. On October 27 and 28, 2021, Nike filed applications to register the following
trademarks with the United States Patent and Trademark Office for use in connection with, inter
alia, “[d]ownloadable virtual goods, namely computer programs featuring footwear,” (i.e., digital
sneaker NFTs) and “[r]etail store services featuring virtual goods, namely footwear” (i.e., a digital
sneaker NFT trading platform):
a. NIKE (word mark) (Serial No. 97095855);
b. JORDAN (word mark) (Serial No. 97096950);
c. (Serial No. 97096952);
d. (Serial No. 97096945);
e. (Serial No. 97095944); and
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f. (Serial No. 97096366).
43. On December 13, 2021, Nike announced that it had acquired RTFKT, a leading
digital art and collectible creative studio that has created some of the most popular apparel-related
digital artwork NFT releases to date, including the CYBERSNEAKER, METAJACKET, and
FEWO Shoes, collectible digital sneakers designed in collaboration with teenage pop artist
FEWOCiOUS. See https://news.nike.com/news/nike-acquires-rtfkt.
44. On or around January 18, 2022, Nike announced to its employees the formation of
Nike Virtual Studios, a new division that will operate as an independent studio to further develop
Nike’s business around virtual products and partner with its core business to deliver best-in-class
Web3, metaverse, and blockchain-based experiences.
45. On February 7, 2022, Nike and RTFKT released the MNLTH NFT collection by
“airdropping” each NFT directly to the then-current owners of RTFKT’s Clone X and PodX NFTs.
The MNLTH NFT is depicted below:
46. On April 22, 2022, Nike and RTFKT released the Nike Dunk Genesis
CryptoKicks™ NFTs, along with the Evo Skin Vial NFTs, which allow owners of the Nike Dunk
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Genesis NFTs to customize the colorway of the digital shoes. Examples of the Nike Dunk Genesis
CryptoKicks™ and Evo Skin Vial NFTs are depicted below:
47. The Nike initiatives discussed above have been highly publicized, and the recent
release of the successful RTFKT x Nike Dunk Genesis CryptoKicks™ NFTs reflects Nike’s deep
understanding of the NFT market. Upon information and belief, StockX has known about Nike’s
plans to expand into the NFT market long prior to its January 2022 “Vault NFT” launch.
StockX’s Resale Platform
48. StockX, like eBay, operates an online marketplace for the resale of sneakers,
streetwear, electronics, luxury handbags, and other collectibles accessible to consumers on the
StockX Website and StockX App. Upon information and belief, StockX does not sell goods
directly to consumers; rather, StockX’s users buy and sell goods from each other on StockX’s
platform. StockX is not an authorized distributor of Nike goods.
49. Unlike the eBay model, however, StockX is an active intermediary for each
transaction—the seller ships the item to StockX, StockX receives and purportedly verifies the
item’s authenticity, StockX then ships the item to the buyer with a StockX-branded verification
badge, and StockX pays the seller (less its transaction fees). See https://stockx.com/about/how-it-
works/.
50. In fact, as StockX alleged in its Answer to Nike’s Complaint:
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StockX uses a proprietary, multi-step authentication process for every product

sold on its platform. This process ensures that items traded on StockX conform
to the product descriptions and condition standards advertised by StockX, and
that the products offered for sale are what they claim to be, and are not
counterfeit, defective, or used—meaning StockX’s customers can trust that
transactions made through StockX are safe. StockX has authenticated tens of
millions of products since its formation, combining its authentication team’s
expert knowledge with AI-enhanced technology to allow global customers to
trade with confidence.
(Answer at 2.)
51. StockX falsely and/or misleadingly claims on the StockX Website that every item
StockX sells on its e-commerce platform—including those items purportedly associated with the
Vault NFTs—has been independently verified by StockX as “100% Verified Authentic.”
Specifically, StockX states that “Every item sold goes through our proprietary multi-step
verification process with our team of expert authenticators.” https://stockx.com/about/how-it-
works/. According to StockX, its rigorous, multi-step verification procedure uses “100+ data
points,” and that its “authenticators are better equipped than anyone to ensure a product’s
authenticity.” https://stockx.com/about/authentication/. StockX misleadingly claims that this
“multi-step verification process” authenticating products is somehow “proprietary,” despite the
fact that StockX is not the entity that designed, created, manufactured, packaged, or shipped in the
first instance any genuine Nike goods, and despite the fact that much of the process itself is openly
displayed in a video found on StockX’s website. StockX prominently advertises this guarantee of
“100% Verified Authentic” and the value its authentication services provide consumers throughout
the StockX Website, as exemplified below:
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52. On the StockX Website, StockX also advertises that it utilizes “Advanced
Technology” and “Quality Assurance” with respect to its authentication services and claims that
it employs quality assurance “experts” to ensure that only authentic goods are sold on its platform:
53. StockX also claims that it has “compiled data from every fake product in the history
of StockX to build a comprehensive database of fake techniques around the world.” It also
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advertises an authentication accuracy rate of “99.95%” but does not explain how this number is
substantiated.
54. The confirmed purchase of counterfeit Nike goods on StockX’s platform—
including the same style purportedly associated with at least one of the infringing Nike-branded
Vault NFTs—confirms that StockX’s claims about its “proprietary multi-step verification
process,” “100% Verified Authentic,” and authentication accuracy rate of “99.95%” are false
and/or misleading.
55. According to StockX’s most recent annual report, Nike’s brands and shoes
dominate StockX’s marketplace. For example, three of Nike’s brands—JORDAN, NIKE, and
CONVERSE—were the among the top five trading footwear brands by volume on StockX’s
marketplace in 2021:
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StockX’s Vault NFTs
56. On January 18, 2022, StockX’s New York-based Editorial Director announced the
launch of StockX Vault NFTs, a collection of NFTs that StockX’s users purchase directly from
StockX through the StockX Website and StockX App. See https://stockx.com/news/introducing-
nfts-on-stockx/. StockX claims the Vault NFTs are associated with a unique physical product held
in StockX’s custody until the NFT owner “redeems” the NFT in exchange for the associated
physical product or some other benefit.
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57. Unlike the physical goods StockX’s users may sell through its online resale
platform—which are manufactured and/or distributed in the first instance by Nike and other brands
or their authorized distributors—StockX’s Vault NFTs are virtual products, i.e., digital
collectibles, created and first offered for sale by StockX, and available direct to consumers for
purchase and trade on the StockX Website and StockX App.
58. StockX markets its Vault NFTs as exciting new product offerings. StockX
advertises to consumers that these “digital assets” can be traded or collected. StockX markets the
thrill of purchasing an NFT, not a “claim ticket” for goods available on its platform. For example,
StockX added a separate “NFT Portfolio” allowing owners of Vault NFTs to collect, track, and
display their NFTs.
59. StockX also modified its platform to allow consumers to shop for “NFTs” as a new
product “Category.” The NFT “Category” is separate from the categories of physical goods that
have been historically available for resale on StockX’s platform. Consumers can sort the “NFTs”
listed in the Category by “Release Date.” Those “release” dates correspond to the dates that
StockX first released each NFT, not the date that the original manufacturer first released any
purportedly associated physical product.
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60. Upon purchase of a Vault NFT, the StockX Website confirms to the consumer that
they have bought an NFT (not a pair of physical shoes) by stating: “Congratulations, you
successfully bought StockX Nike Dunk Low Retro White Black (Vault NFT) on StockX. The
NFT has now been added to your StockX Portfolio” and allowing the consumer to “share” the
NFT purchase via e-mail or social media:
61. At the point of purchase StockX also e-mails the Vault NFT consumer confirmation
that they have purchased an NFT (not a pair of physical shoes) by exclaiming in large, bold font
at the top of the e-mail: “You Bought an NFT!” The e-mail further states to the consumer:
“Congratulations! Your bid has been accepted. The NFT transfer can take a few minutes. When
the transfer is complete, your NFT will be available in your StockX Portfolio.”
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62. Nowhere on the StockX Order Confirmation Webpage or StockX Order
Confirmation e-mail does StockX expressly state that the consumer purchased a physical item
instead of an NFT. StockX does not inform the consumer that it bought a “claim ticket” linked to
an underlying physical item. StockX does not state: “Congratulations, you just bought a pair of
Nike or Jordan shoes.” Instead, StockX congratulates the consumer on purchasing an NFT because
the NFT is the product that the consumer purchased.
63. StockX has sold Nike-branded Vault NFTs at prices many multiples above the price
of the physical Nike shoe. For example, the 2022 version of the Nike Dunk Low – Retro White
Black (i.e., the physical pair of shoes) will retail for $100 from nike.com:
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According to StockX’s marketplace, as of February 2, 2022, the average sale price for the 2021
version of the shoes is $282:
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Yet, as of February 2, 2022, the average price of the Vault NFT purportedly linked to these shoes
is $809, with the highest trade being $3500:
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64. Another example is the sacai x KAWS Blazer Low Neptune Blue size 10 M which
retails for $140 from nike.com:
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According to StockX’s marketplace, as of February 2, 2022, the average sale price for the shoes
is $205:
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As of February 2, 2022, the average price, however, of the Vault NFT purportedly linked to these
shoes is $590, with the highest trade being $3995:
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65. These significant price discrepancies continue, and as of the current date certain
Nike-branded Vault NFTs are still selling for thousands of dollars above the price of the physical
shoe.
66. As of the date Nike filed this action, StockX stated that the Vault NFTs are minted
on the Ethereum blockchain, “offering owners the opportunity to invest in current culture, with
cross-platform liquidity on the horizon.” See https://stockx.com/lp/nfts/. As of the date Nike filed
this action, StockX also stated that Vault NFT owners may be granted exclusive access to StockX
benefits, promotions, experiences, and rewards. Id.
67. As of the date Nike filed this action, StockX further stated that NFT owners may
redeem the token to have the shoes delivered at any time. But, as shown below, StockX also
simultaneously stated that the “redemption process is not currently available,” but may be
sometime in the “near future.”
Upon redemption, StockX states that it will remove the shoes from the vault, charge “a $35
withdrawal fee, a $14 shipping fee, and any applicable sales tax” on top of the price the owner
paid for the Vault NFT, and ship them to the owner. See https://stockx.com/help/articles/What-
fees-are-associated-with-Vault-NFTs. StockX will then remove the Vault NFT from circulation
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by deleting it from the owner’s portfolio (i.e., StockX will “burn” the Vault NFT). See, e.g.,
https://stockx.com/retro-black-and-white-dunk-vault-nft.
68. StockX’s Terms and Conditions, as of the date Nike filed this action, included
sections titled “Vault Terms” and “NFT Terms” (collectively, the “Vault NFT Terms”) which
govern the Vault NFT offerings. See https://stockx.com/terms.
69. According to the Vault NFT Terms in place as of the date Nike filed this action,
when a consumer purchases a Vault NFT, the consumer gains title to both the purchased Vault
NFT (i.e., the digital collectible) and the Stored Item (i.e., the physical goods) to which the NFT
corresponds, and the consumer automatically makes use of StockX’s Vault Services (i.e., storage
of the physical goods in StockX’s facility). Id.
70. As of the date Nike filed this action, the Vault NFT Terms also stated that (i) a
Vault NFT (i.e., the digital collectible) has no value beyond that of the associated Stored Item (i.e.,
the physical goods), and (ii) the Vault Services are currently provided by StockX at no additional
cost; however, a Vault NFT owner may be required to pay additional fees if they elect to have a
Stored Item shipped to them or if they use the Vault Services past January 31, 2023. Id.
71. Notably, under the Vault NFT Terms in place from launch through at least the date
Nike filed this action, StockX also retained the right to unilaterally redeem a Vault NFT for a so-
called “Experiential Component,” and cancel or take away the NFT, i.e., the Vault NFT owner
never receives the physical version of the shoes or loses the opportunity to do so. Specifically, the
Vault NFT Terms stated, “Note that in some cases, per the applicable Additional NFT Terms,
StockX may automatically redeem your NFT for an Experiential Component,2 at its sole discretion,
2
As of the date Nike filed this action, the phrase “Experiential Component” was explained and
defined under the Vault NFT Terms as follows: “NFTs may take a variety of forms, and the holders
of NFTs may be entitled to obtain certain products, benefits or engage in certain experiences, such
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in which case StockX may remove the NFT from your portfolio and you will cease to own the
NFT.” See https://stockx.com/terms:
72. Upon information and belief, the provision in Paragraph 70 stating that the Vault
NFT has no value apart from the physical shoes directly conflicted with the terms described in
Paragraph 71 above: because StockX retained the right to redeem the Vault NFT for an
Experiential Component, the Vault NFT does, in fact, have value apart from the physical shoes.
The provision likewise directly conflicted with StockX’s other previous statement that the Vault
NFT includes additional benefits beyond the physical shoes, such as “exclusive access to StockX
releases, promotions, events, as a result of ownership.”
73. Since Nike filed this action and, upon information and belief, after StockX already
sold off and provided a platform for the resale of all the infringing Nike-branded NFTs, StockX
repeatedly revised these terms and statements. For example, from January 18, 2022 through at
least April 25, 2022, StockX included the following statements on its NFT landing page, currently
as unlocking a prize or entry into an exclusive sale (“Experiential Component”), as determined by

StockX in its sole discretion, subject to any additional terms provided by StockX with or in
connection with the purchase of such NFT (“Additional NFT Terms”).” See
https://stockx.com/terms.
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located at https://stockx.com/lp/nfts/, which Nike pointed out to the Court in a statement filed on
March 31, 2022 [Dkt. No. 23]:
At some point on or around April 25, 2022, StockX removed this language, replacing it with
statements that attempt to align with its defensive theme:
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74. None of StockX’s trivial, post-hoc changes have resolved its ongoing infringement
and dilution of Nike’s trademarks, and what StockX has opted not to change speaks volumes: to
date, StockX has not removed or in any way modified the prominent use and display of Nike’s
marks from the infringing Nike-branded Vault NFTs.
75. As of February 2, 2022, StockX’s Vault NFT collection comprised nine NFTs, as
shown below. Eight of the nine prominently display Nike’s marks and are associated with Nike
products. Upon information and belief, StockX almost exclusively used Nike’s marks to launch
its Vault NFTs because it knew that doing so would garner attention, drive sales, and confuse
consumers into believing that Nike collaborated with StockX on the Vault NFTs.
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76. To date, upon information and belief, StockX has sold 558 individual Nike-branded
Vault NFTs. Some of the infringing Nike-branded Vault NFTs are editions of 1, others are editions
of 100, and some are as many as editions of 250. Upon information and belief, StockX has also
minted—but not yet sold—at least another 2,000 infringing Nike-branded Vault NFTs purportedly
linked to Nike’s Air Jordan 11 Retro Cool Grey shoes. Given that StockX is not an authorized
Nike retailer, to the extent all corresponding physical Nike shoes exist at StockX’s “vault” facility,
it is not clear where or how StockX acquired that many pairs of “100% Authentic” Nike shoes.
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77. On the StockX product pages for its Vault NFTs, as shown below as of the date
Nike filed its action, StockX prominently displayed Nike’s word marks in large, bold text at the
top of the page, and couples Nike’s marks with its own “Vault NFT” designation in parentheticals
in the same large, bold text.
78. StockX also touted each Vault NFT as “100% Authentic,” which, upon information
and belief, is intended to explicitly mislead consumers that Nike has authorized, approved,
sponsored, and/or endorsed StockX’s Vault NFTs.
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79. Further down the StockX product page for each Vault NFT as of the date Nike filed
this action, StockX provided “Product Details,” which included a “Product Description,” that also
uses Nike’s marks. For example, StockX’s description for the Nike Dunk Low Retro White Black
(Vault NFT) opens with: “One of the most popular Nike Dunks of 2021 is now a part of StockX’s
Vault NFT experience.”
If a consumer clicks on the “Read More” button, additional text appears, including “The Fine
Print,” which states: “If the physical item associated with this Vault NFT is redeemed by the owner,
it is removed from the StockX Vault and shipped to the owner. StockX will then remove the Vault
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81. In addition to the vivid image of the Nike shoe each Vault NFT purports to
represent, the StockX product page for each Vault NFT, as of the date Nike filed this action, also
displayed a second image, the “back” of the Vault NFT, as shown below:
82. As of February 3, 2022, StockX stated, in large font, “How It Works,” with four
bolded bullet points explaining, in simple terms, what users can do with a Vault NFT. Below the
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four bullet points, in comically and intentionally small, difficult-to-read font, StockX also stated:
“The purpose of the NFT is solely to track the ownership of and transactions in connection with
the associated product. The NFT does not independently authenticate the associated product, nor
is it affiliated or associated with, sponsored by, or officially connected to Nike or any of its
subsidiaries or affiliates. For more information on official Nike products, please visit Nike.com.”
Putting aside the ineffectiveness of this tiny disclaimer and the additional small print disclaimers
added since this action was filed the “does not independently authenticate” language appears to
conflict with the “100% Authentic” on the product page.
83. Upon information and belief, recognizing the tremendous value of the Nike brand
to consumers, StockX is also using Nike’s trademarks and images of Nike’s products to promote
its Vault NFTs on the StockX Website, StockX App, and on StockX’s social media accounts. For
example, as of the date Nike filed this action, StockX promoted its Vault NFTs on its website with
the following images incorporating Nike’s products and trademarks:
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84. StockX was also using Nike’s trademarks and images of Nike’s products on paid
Google Ads to promote its Vault NFTs:
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85. As of the present date, StockX’s Twitter account displayed a banner image
depicting two Nike shoes, which appears to be the same image used by StockX to promote the
Vault NFTs on its website, as shown above:
86. On January 18, 2022, to promote the launch of its Vault NFTs, StockX posted to
its Instagram account a series of images depicting Nike’s trademarks and products, including the
two shown below:
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87. The full caption of the above Instagram post states: “NFTs are on StockX.
Introducing #StockXVault: a digital NFT that’s backed by a physical product and stored in a
StockX facility. This is just the beginning of our web3 future. Available for trading now. Links
to purchase in Product Tags and Stories. Welcome to the future of culture. Learn more at the link
in bio.”
88. On January 26, 2022, StockX again promoted its Vault NFTs by posting to its
Instagram account a pair of images depicting Nike’s trademarks and product, including the one
shown below:
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89. The full caption of the above Instagram post states: “A new #StockXVault arrival:
The Jordan 1 High Patent Bred. Limited to 250 editions, each size 10, and available for trading
immediately. Links to purchase in the Product Tags and Stories. Tap fast to add to your portfolio.”
90. Also on January 26, 2022, StockX tweeted a promotional video for the Jordan 1
Retro High OG Patent Bred Vault NFT:
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91. As shown above, as of the date Nike filed this action, StockX was using Nike’s
trademarks to market, promote, and attract potential purchasers to its Vault NFTs. StockX’s use
of Nike’s marks is, upon information and belief, intentionally deceiving consumers into believing
that Nike sponsors or approves of the Vault NFTs.
92. StockX’s Vault NFTs are not Nike products. There is no collaboration between
Nike and StockX, Nike did not provide a license to StockX to use its trademarks in connection
with the Vault NFTs, Nike did not create or inspect the Vault NFTs or authorize the confusing and
misleading Vault NFT Terms, and Nike did not authorize StockX to make, promote, advertise,
market, or sell the Vault NFTs.
93. While StockX represents that the Vault NFTs are “backed by” and confer title to
genuine Nike products, StockX has marketed them as bundled with additional digital goods,
services, and unspecified benefits in such a manner that the Vault NFTs constitute new,
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unauthorized products created, marketed, offered for sale, and sold by StockX, exclusively on the
StockX Website and StockX App.
94. Despite StockX’s prominent use of Nike’s trademarks and products in connection
with the Vault NFTs, Nike has no control over the quality of the Vault NFTs whatsoever. Nike
has no say in how many Vault NFTs bearing its trademarks are released, where the Vault NFTs
are released and traded, when the Vault NFTs are released, how the Vault NFTs are released,
traded, or redeemed, and at what price the Vault NFTs are sold and traded.
95. As noted in Paragraphs 63-65 above, the Vault NFTs are presently trading for
inflated prices that are multiples higher than both the original retail price of the shoes and the
current resale price on the secondary market.
96. The Vault NFTs’ inflated prices and murky terms of purchase and ownership have
already led to public criticism of StockX and allegations that the Vault NFTs are a scam. For
example, on January 19, 2022, Input Magazine published an article on its website entitled
“StockX’s ‘sneaker’ NFTs are kind of a scam hidden in plain sight.” The article’s author, Ian
Servantes, highlights the Vault NFT Terms that suggest the benefits of Vault NFT ownership may
be entirely illusory:
Owner’s [sic] of StockX’s limited series of sneaker NFTs will be

given exclusive access to the company’s releases, promotions, and
events, according to the announcement page. But if you dig further
into the term’s [sic] of service, as Sole Retriever did, you’ll find that
StockX has been given license to redeem your NFT for an
‘experiential component’ and even take away your ownership of the
NFT as a result of the transaction.
The initial offering for StockX’s NFTs have already sold out, so let’s
say you decide to engage in a secondary purchase for an NFT. You
purchase, say, the NFT for the Nike x Ben & Jerry’s “Chunky
Dunky,” which has an ask of $100,000 and a highest bid of $3,000.
Now that it’s yours you don’t get the actual sneaker, and at some
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point StockX can come in say, Here’s access to an early sale or a

discount, and by the way, that NFT is no longer yours.
Even in a field as fishy NFTs, StockX’s proposition smells like one

of the most obvious grifts you’re likely to see. In a bid to stand out
as different as NFTs, StockX has instead made tokens that make it
even more clear that you’re the mark.
See https://www.inputmag.com/style/stockx-vault-nfts-sneakers-shoes-nike-off-
white-dunk-adidas-bad-bunny.
97. The above impression of StockX’s Vault NFTs demonstrates that they have been
received by potential purchasers with suspicion and doubts about the integrity and trustworthiness
of StockX’s NFT business model. This example also shows that StockX’s prominent use of Nike’s
trademarks and products in connection with the Vault NFTs has already generated negative
associations with Nike’s trademarks and products that harm Nike’s business reputation and the
goodwill associated with its trademarks, in which Nike has invested immense resources to develop
over the past five decades.
98. Upon information and belief, StockX has attempted to capitalize on Nike’s valuable
reputation and goodwill by using Nike’s Asserted Marks and/or confusingly similar marks in a
manner that is likely to cause consumers to believe that StockX’s Vault NFTs are associated with
Nike, when they are not. Indeed, as noted in Paragraph 80 above, if StockX merely intended to
use NFTs as digital receipts as it claims, there would be no need to make such extensive and
prominent use of Nike’s trademarks. Upon information and belief, this prominent use of Nike’s
marks was intended to free ride on Nike’s immense goodwill and satisfy consumer desire to own
Nike-branded virtual goods, which owners can display in their portfolios.
99. StockX’s use of Nike’s trademarks and images of Nike’s products to promote its
Vault NFTs has already created confusion in the marketplace as to the Vault NFTs’ source and
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whether Nike is in any way involved or associated with StockX’s Vault NFTs. For example,
immediately after StockX announced the Vault NFTs’ release, on January 18, 2022, users on social
media questioned the propriety of StockX’s Vault NFTs and whether Nike is “in on it too,” while
others “feel safe assuming Nike gets a cut of the fees that StockX takes from each transaction.”
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100. Consumer confusion as to whether Nike is associated with StockX’s Vault NFTs
was also immediately evident on Twitter, where, on January 18, 2022, a user replied to a StockX
tweet promoting the launch of its Vault NFTs, asking whether the Vault NFTS are
“endorsed/approved by Nike/Adidas etc?”:
101. The following day, January 19, 2022, Reddit users on another thread under the
r/Sneakers subreddit wondered whether Nike had granted StockX a license to use Nike’s
“branding”:
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102. On that same day, January 19, 2022, and same thread under the r/Sneakers
subreddit, another confused user expressed their (incorrect) belief that “Nike gets a small
commission every time an NFT is purchased,” and that StockX’s Vault NFTs are “a way for Nike
to get a piece of the huge pie of the resale market” while not bringing any added benefit to the
buyer:
103. Additionally, on January 21, 2022, in response to a video posted earlier that same
day discussing StockX’s Vault NFTs, one confused TikTok user commented: “You can just cash
out of the nft for the actual shoe but I think it’s just a stupid scam for Nike to make money.”
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See https://www.zenger.news/2022/05/02/nike-takes-a-major-step-into-the-metaverse/.
105. But Nike’s Dunk Genesis Cryptokicks™ NFTs did not debut on StockX, and users
of StockX’s platform cannot buy NFTs supported by Nike. This was precisely the sort of
confusion that Nike feared would ensue when it filed this action and began releasing genuine
NFTs.
StockX’s Counterfeit Sales and Claims of Authenticity
106. In addition to the infringing and dilutive conduct related to the Vault NFTs, Nike’s
continuing investigation into StockX’s conduct has also revealed that StockX has been and is
currently dealing in counterfeit Nike goods.
107. Between December 2021 and January 2022, Nike obtained from StockX’s platform
at least four pairs of counterfeit Nike shoes. Since the filing of this action, Nike has confirmed
that these four pairs of shoes are, in fact, counterfeit. As noted above, one of the confirmed pairs
of counterfeit Nike shoes is a counterfeit Air Jordan 1 Retro High OG in the Black/Varsity Red-
White colorway—the exact same style that StockX has purportedly linked to one of its eight
infringing Nike-branded Vault NFTs:
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StockX on its social media channels. Nike’s investigation remains ongoing and, upon information
and belief, StockX is selling and will continue to sell counterfeit Nike goods to unsuspecting
consumers.
110. StockX claims on the StockX Website that every item StockX sells on its e-
commerce platform—including those items purportedly associated with the Vault NFTs—has
been independently verified by StockX as “100% Verified Authentic.” The confirmed purchase
of counterfeit Nike goods on StockX’s platform—including the same style purportedly associated
with at least one of the infringing Nike-branded Vault NFTs—directly undermines StockX’s
“100% Verified Authentic” claims and its claims about the “proprietary multi-step verification
process” it employs to authenticate goods and renders these statements false and/or misleading.
111. StockX’s “100% Verified Authentic” claims and its claims about the “proprietary
multi-step verification process” it employs to authenticate goods sold on its e-commerce platform
are material because StockX is misrepresenting an inherent quality or characteristic of the Nike
goods sold on its platform, i.e., that they are not counterfeit and have been authenticated as
genuine. Moreover, StockX’s claims are likely to influence consumer purchasing decisions
because consumers shopping for real Nike goods are more likely to purchase from StockX than
other channels based on StockX’s prominent claims about the authenticity of the Nike goods for
sale on its platform and based on its statements that its authentication process is proprietary, that
StockX authenticators are “better equipped than anyone” to confirm the authenticity of a product.
112. On information and belief, an unknown number of consumers have been deceived
by and purchased counterfeit Nike goods or Nike-branded Vault NFTs based on StockX’s false
and/or misleading statements about the authenticity of the Nike goods for sale on its platform.
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113. On information and belief, StockX knows that its false and/or misleading
statements about the authenticity of the Nike goods for sale on its platform deceives consumers.
Nevertheless, StockX continues to engage in such improper and unlawful business practices to
attract consumers to its platform and induce consumers to purchase supposedly genuine Nike
goods and purchase and trade the infringing Nike-branded Vault NFTs.
114. The continued sale of counterfeit Nike goods on StockX’s platform and StockX’s
false and/or misleading claims about its authentication process and verified authenticity have
caused and are causing Nike injury as a result of, inter alia, harm to reputation, diverted sales,
consumer confusion, dilution, and tarnishment of its valuable trademarks.
115. By virtue of the acts complained of herein, StockX has created a likelihood of injury
to Nike’s business reputation and goodwill, caused a likelihood of consumer confusion, mistake,
and deception as to the source of origin or relationship of Nike’s products and StockX’s Vault
NFTs, and has otherwise competed unfairly by unlawfully dealing in counterfeit Nike goods,
making false and/or misleading statements, and trading on and using Nike’s Asserted Marks
without Nike’s permission.
116. Unless stopped, StockX’s Vault NFTs, StockX’s use of Nike’s Asserted Marks,
StockX’s dealing in counterfeit Nike goods, and StockX’s false and/or misleading statements will
continue to confuse consumers in the marketplace and dilute Nike’s famous marks by blurring and
tarnishment.
117. As noted above in Paragraph 6 above, StockX has already announced its plans to
expand its Vault NFT business, which will likely include additional uses of Nike’s famous
trademarks and products. In addition to StockX’s announcement referenced above, StockX
confirmed its plans to release additional Vault NFTs on Twitter:
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118. Indeed, since this action was filed, Nike discovered that StockX has also minted—
but not yet sold—at least another 2,000 infringing Nike-branded Vault NFTs purportedly linked
to Nike’s Air Jordan 11 Retro Cool Grey shoes.
119. StockX’s acts complained of herein are willful and deliberate.
120. StockX’s acts complained of herein have caused damage to Nike in an amount to
be determined at trial, and such damages will continue to increase unless StockX is preliminarily
and permanently enjoined from their wrongful acts.
121. StockX’s acts complained of herein have caused Nike to suffer irreparable injury
to its business. Nike will suffer substantial loss of goodwill and reputation unless and until StockX
is permanently enjoined from the wrongful acts complained of herein.
FIRST CAUSE OF ACTION

TRADEMARK INFRINGEMENT
15 U.S.C. § 1114
122. Nike repeats and realleges each and every allegation in the foregoing Paragraphs 1
to 121 as if fully set forth herein.
123. Nike’s Asserted Marks are on the Principal Register of the United States Patent and
Trademark Office.
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124. Through extensive and continuous use, Nike’s Asserted Marks and the goodwill of
the businesses associated with them in the United States and throughout the world are of significant
value, are highly distinctive and arbitrary or fanciful, and have become universally associated in
the public mind with Nike, its products and services, and the very highest quality and reputation.
125. StockX has knowingly used and continues to use in commerce, without Nike’s
permission or authorization, Nike’s Asserted Marks, and/or confusingly similar marks, in
connection with the sale, distribution, and advertising of its Vault NFTs.
126. StockX’s conduct is intended to exploit the goodwill and reputation associated with
Nike’s Asserted Marks.
127. StockX’s use of Nike’s Asserted Marks is likely to confuse, mislead, or deceive
potential consumers, purchasers, and the general purchasing public as to the source, origin,
sponsorship, or affiliation of the Vault NFTs with Nike, and is likely to cause such people to
erroneously believe that StockX’s Vault NFTs have been authorized, sponsored, approved,
endorsed, or licensed by Nike or that StockX is in some way affiliated with Nike.
128. StockX’s unauthorized use of Nike’s Asserted Marks constitutes trademark
infringement of Nike’s federally registered trademarks, which has caused damage to Nike and the
substantial business and good will embodied in Nike’s trademarks in violation of Section 32 of the
Lanham Act, 15 U.S.C. § 1114.
129. As a direct and proximate result of StockX’s wrongful acts, Nike has suffered,
continues to suffer, and/or is likely to suffer damage to its trademarks, business reputation, and
good will that money cannot compensate. Unless enjoined, StockX will continue to use Nike’s
Asserted Marks and/or confusingly similar marks and will cause irreparable damage to Nike,
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Nike’s Asserted Marks, and to the business and good will represented thereby, for which Nike has
no adequate remedy at law.
130. Nike is further entitled to recover from StockX the actual damages Nike has
sustained, is sustaining, and/or is likely to sustain as a result of StockX’s wrongful acts.
131. Upon information and belief, StockX has obtained gains, profits, and advantages as
a result of its wrongful acts and will continue to do so in an amount yet to be determined.
132. StockX’s use of Nike’s Asserted Marks and/or confusingly similar marks has been
intentional and willful. StockX’s bad faith is evidenced, in part, by the egregious and prominent
use of Nike’s Asserted Marks in connection with the sale and promotion of the Vault NFTs, and
the extensive nature of the infringement. Because of the willful nature of StockX’s wrongful acts,
Nike is entitled to an award of treble damages and increased profits under 15 U.S.C. § 1117.
133. Because this is an exceptional case, Nike is also entitled to recover its costs of suit
and its attorneys’ fees pursuant to 15 U.S.C. § 1117.
SECOND CAUSE OF ACTION

FALSE DESIGNATION OF ORIGIN / UNFAIR COMPETITION
15 U.S.C. § 1125(a)
135. StockX’s unauthorized use of Nike’s Asserted Marks and/or confusingly similar
marks constitutes a false designation of origin that is likely to cause consumer confusion, mistake,
or deception as to the origin, sponsorship, or approval of StockX’s Vault NFTs by creating the
false and/or misleading impression StockX’s Vault NFTs are produced by, authorized by, or
otherwise associated with Nike.
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136. As a direct and proximate result of StockX’s wrongful acts, Nike has suffered,
Nike’s Asserted Marks, and to the business and good will represented thereby, for which Nike has
no adequate remedy at law.
THIRD CAUSE OF ACTION

TRADEMARK DILUTION
15 U.S.C. § 1125(c)
141. As a result of the duration, extent, and geographical reach of advertising and
publicity, the amount, volume, and geographical extent of Nike’s sales and trading areas, their
channels of trade, their degree of recognition, and registration, Nike’s Asserted Marks have
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become distinctive and “famous” within the meaning of Section 43(c) of the Lanham Act, 15
U.S.C. § 1125(c).
142. Nike’s Asserted Marks have become distinctive and famous prior to StockX’s acts
as alleged herein.
143. StockX’s unauthorized and wrongful use of Nike’s Asserted Marks in commerce
has diluted and will, unless enjoined, continue to dilute, and is likely to dilute the distinctive quality
of Nike’s Asserted Marks, in violation of Nike’s rights under 15 U.S.C. § 1125(c)
144. StockX’s unauthorized and wrongful use of Nike’s Asserted Marks in commerce
has tarnished and will, unless enjoined, continue to tarnish, and is likely to tarnish the fame of
Nike’s Asserted Marks by undermining and damaging the valuable good will associated therewith,
in violation of Nike’s rights under 15 U.S.C. § 1125(c).
145. StockX’s acts as alleged herein are intentional and willful in violation of Section
43(c) of the Lanham Act, 15 U.S.C. § 1125(c), and have already caused Nike irreparable damage
and will, unless enjoined, continue to so damage Nike, which has no adequate remedy at law.
147. Upon information and belief, StockX has obtained gains, profits, and advantages as
a result of its wrongful acts and will continue to do so in an amount yet to be determined.
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FOURTH CAUSE OF ACTION

INJURY TO BUSINESS REPUTATION AND DILUTION
NEW YORK GENERAL BUSINESS LAW § 360-1
151. Nike, on behalf of itself and the general consuming public, seek recovery from
StockX for violation of New York’s Anti-Dilution Statute, N.Y. Gen. Bus. Law § 360-1, et seq.
152. Nike’s Asserted Marks are commercially and conceptually strong trademarks,
which have become distinctive and acquired a secondary meaning capable of dilution.
153. Nike’s Asserted Marks have become distinctive and acquired a secondary meaning
capable of dilution prior to StockX’s acts as alleged herein.
154. StockX’s unauthorized and wrongful use of Nike’s Asserted Marks has diluted and
will, unless enjoined, continue to dilute, and is likely to dilute the distinctive quality of Nike’s
Asserted Marks, thereby diminishing the capacity of Nike’s Asserted Marks to function as unique
product identifiers for Nike’s goods and services.
155. StockX’s unauthorized and wrongful use of Nike’s Asserted Marks has tarnished
and will, unless enjoined, continue to tarnish, and is likely to tarnish Nike’s Asserted Marks by
creating negative associations with Nike, its Asserted Marks, and the associated business
reputation and good will.
156. StockX’s acts as alleged herein are intentional and willful in violation of New
York’s Anti-Dilution Statute, N.Y. Gen. Bus. Law § 360-1, et seq., and have already caused Nike
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irreparable damage and will, unless enjoined, continue to so damage Nike, which has no adequate
remedy at law.
FIFTH CAUSE OF ACTION

COMMON LAW TRADEMARK INFRINGEMENT
AND UNFAIR COMPETITION
158. Through its prior and continuous use of its Asserted Marks in commerce, Nike’s
Asserted Marks have become widely known, and Nike has been identified in the public mind as
the manufacturer of the products to which the Nike Asserted Marks are applied.
159. Through its prior and continuous use of its Asserted Marks in commerce, Nike
enjoys exclusive common law rights in the Asserted Marks.
160. StockX’s use of Nike’s Asserted Marks is without any permission, license or other
authorization from Nike.
161. StockX, with knowledge and intentional disregard of Nike’s rights, continues to
advertise, promote, and sell Vault NFTs using Nike’s Asserted Marks and/or confusingly similar
marks. StockX’s acts have caused, continue to cause, and/or are likely to cause confusion as to the
source and/or sponsorship of the Vault NFTs.
162. StockX’s acts as alleged herein constitute common law trademark infringement,
and have already caused Nike irreparable damage and will, unless enjoined, continue to so damage
Nike, which has no adequate remedy at law.
163. Upon information and belief, StockX committed the acts alleged herein knowingly,
willfully, wantonly, oppressively, fraudulently, maliciously, and in conscious disregard of Nike’s
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rights, thereby entitling Nike to exemplary and punitive damages pursuant to the common law of
the State of New York in an amount sufficient to punish, deter, and make an example of StockX.
SIXTH CAUSE OF ACTION

COUNTERFEITING
15 U.S.C. § 1114
to 121 as if fully set forth herein
165. Nike’s Asserted Marks are on the Principal Register of the United States Patent and
Trademark Office.
166. Through extensive and continuous use, Nike’s Asserted Marks and the goodwill of
the businesses associated with them in the United States and throughout the world are of significant
value, are highly distinctive and arbitrary or fanciful, and have become universally associated in
the public mind with Nike, its products and services, and the very highest quality and reputation.
167. StockX is acquiring, offering for sale, selling and shipping directly to consumers
shoes bearing counterfeits of the following Nike federally registered trademarks: Reg. No.
1,370,283 (AIR JORDAN word mark); Reg. No. 3,725,535 (Air Jordan & Wings Design mark);
Reg. No. 3,627,820 (JUMPMAN word mark); Reg. No. 1,558,100 (JumpMan Design mark); Reg.
No. 978,952 (NIKE word mark); Reg. No. 1,214,930 (NIKE word mark); Reg. No. 977,190
(Swoosh Design mark); Reg. No. 1,323,343 (Swoosh Design mark); and Reg. No. 1,325,938
(NIKE & Swoosh Design mark).
168. StockX’s counterfeiting activities are likely to cause and actually are causing
confusion, mistake, and deception among the general consuming public as to the quality of Nike’s
authentic shoes. StockX’s unlawful acts are intended to reap the benefit of the immense goodwill
that Nike has created in its goods and constitute counterfeiting of the following Nike federally
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registered trademarks in violation of § 32(1) of the Lanham Act, 15 U.S.C. § 1114(1): Reg. No.
Reg. No. 3,627,820 (JUMPMAN word mark); Reg. No. 1,558,100 (JumpMan Design mark); Reg.
No. 978,952 (NIKE word mark); Reg. No. 1,214,930 (NIKE word mark); Reg. No. 977,190
169. Unless enjoined, Nike will continue to suffer immediate and irreparable injury and
StockX will continue to deceive the public unless enjoined from its counterfeiting conduct. Nike
has no adequate remedy at law.
170. Because StockX’s conduct was willful, Nike is entitled to statutory damages of up
to $2 million per counterfeit mark per type of goods or services sold, offered for sale, or distributed,
pursuant to 15 U.S.C. § 1117.
SEVENTH CAUSE OF ACTION

FALSE ADVERTISING
15 U.S.C. § 1125(a)(1)(B)
172. In its pervasive advertising and marketing, StockX explicitly claims and guarantees
that every item it sells—including those items purportedly associated with the Vault NFTs—has
been independently verified by StockX as “100% Verified Authentic” through its “proprietary”
process.
173. In connection with the advertising activities, StockX is falsely and/or misleadingly
claiming that all Nike products sold on StockX’s platform are “100% Verified Authentic” genuine,
non-counterfeit goods manufactured by Nike, when, in fact, StockX is selling to consumers
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counterfeit Nike shoes. It is also claiming that its process for authenticating products is somehow
“proprietary,” despite the fact that StockX is not the entity that designed, created, manufactured,
packaged, or shipped in the first instance any genuine Nike goods. StockX is therefore
misrepresenting the nature, characteristics, and qualities of its goods and services and is misleading
consumers in the process.
174. Upon information and belief, StockX made these false and/or misleading
representations in order to take advantage of Nike’s immense goodwill and to induce consumers
to purchase Nike shoes on the StockX platform. Nike has an intense interest in stopping StockX
from deceiving and misleading consumers into believing consumers can blindly trust that all of
the Nike shoes offered by StockX are genuine when they are not. StockX’s false and/or misleading
statements are causing immediate and irreparable injury to Nike, by injuring Nike’s reputation in
the marketplace, diverting consumer purchases of genuine Nike goods, and will continue to
damage Nike and deceive consumers unless enjoined by this Court.
175. StockX’s acts constitute false advertising and false representations in violation of
15 U.S.C. § 1125(a)(1)(B). Nike has no adequate remedy at law.
JURY DEMAND
Pursuant to Federal Rule of Civil Procedure 38(b), Nike hereby demands a trial by jury of
all issues so triable.
PRAYER FOR RELIEF
WHEREFORE, Nike respectfully prays for:
1. A judgment and order that StockX has willfully (A) infringed Nike’s Asserted
Marks and engaged in counterfeiting in violation of 15 U.S.C. §1114, (B) used false designations
of origin and made false and/or misleading statements in violation of 15 U.S.C § 1125(a), (C)
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diluted at least the Nike Asserted Marks in violation of 15 U.S.C. § 1125(c), (D) injured Nike’s
business reputation and diluted at least Nike’s Asserted Marks violation of New York’s Anti-
Dilution Statute, N.Y. Gen. Bus. Law § 360-1, et seq., and (E) violated Nike’s common law rights
in Nike’s Asserted Marks;
2. A judgment and order enjoining StockX and StockX’s affiliates, officers, agents,
employees, attorneys, and all other persons acting in concert with StockX, during the pendency of
this action and permanently thereafter from:
a. Manufacturing, minting, transporting, promoting, advertising, publicizing,
distributing, offering for sale, or selling any NFT products (including but not
limited to the Vault NFTs) under Nike’s Asserted Marks, any marks substantially
indistinguishable therefrom, or any other marks, names, symbols, or logos which
are likely to cause confusion or to cause mistake or to deceive persons into the
erroneous belief that any products that StockX caused to enter the stream of
commerce or any of StockX’s commercial activities are sponsored or licensed by
Nike, are authorized by Nike, or are connected or affiliated in some way with Nike
or Nike’s Asserted Marks;
b. Manufacturing, minting, transporting, promoting, advertising, publicizing,
indistinguishable therefrom, and/or confusingly similar marks;
c. Implying Nike’s approval, endorsement, or sponsorship of, or affiliation or
connection with, StockX’s products, services, or commercial activities, passing off
StockX’s business as that of Nike, or engaging in any act or series of acts which,
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either alone or in combination, constitutes unfair methods of competition with Nike
and from otherwise interfering with or injuring Nike’s Asserted Marks or the good
will associated therewith;
d. Engaging in any act which is likely to dilute the distinctive quality of the
Nike Asserted Marks and/or injures Nike’s business reputation;
e. Representing or implying that StockX is in any way sponsored by, currently
affiliated with, or licensed by Nike;
f. Engaging in the sale of counterfeit Nike goods;
g. Claiming that every item sold on its platform is “100% Verified Authentic”
through a “proprietary” process or making any false and/or misleading statements
about its product authentication or verification process; or
h. Knowingly assisting, inducing, aiding, or abetting any other person or
business entity in engaging in or performing any of the activities referred to in
paragraphs 2(a) to (e) above;
3. An order that StockX be required to deliver to Nike for destruction any and all Vault
NFTs, associated footwear, digital files, packaging, printed graphics, promotional materials,
business cards, signs, labels, advertisements, flyers, circulars, and any other items in any of their
possession, custody, or control bearing Nike’s Asserted Marks, any marks substantially
indistinguishable therefrom, confusingly similar marks;
4. An order granting an award of damages suffered by Nike according to proof at the
time of trial;
5. An order that StockX account to Nike for any and all profits earned as a result of
StockX’s acts in violation of Nike’s rights;
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6. An award of three times the amount of compensatory damages and increased profits
pursuant to 15 U.S.C. § 1117(a);
7. An award of three times such profits or damages, whichever amount is greater,
together with a reasonable attorneys’ fees, pursuant to 15 U.S.C. § 1117(b);
8. An award of statutory damages pursuant to 15 U.S.C. § 1117(c);
9. An order granting an award of punitive damages for the willful and wanton nature
of StockX’s aforesaid acts under the New York General Business Law and the common law;
10. An order granting pre-judgment interest on any recovery by Nike;
11. An order granting an award of Nike’s costs, expenses, and reasonable attorneys’
fees; and
12. Granting such other and further relief as is just and proper.
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Dated: ___________ Respectfully submitted,
By:
DLA PIPER LLP (US)
Tamar Y. Duvdevani
Marc E. Miller
Jared Greenfield
1251 Avenue of the Americas 27th Fl.
New York, New York 10020-1104
[email protected]
[email protected]
[email protected]
Michael Fluhr
555 Mission Street
San Francisco, CA 9410
[email protected]
Attorneys for Plaintiff Nike, Inc.
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Exhibit B

NIKE, INC.,
Plaintiff,
Case No.
v. 1:22-cv-000983-___________VEC
STOCKX LLC, [PROPOSED] FIRST AMENDED

Defendant. COMPLAINT
JURY TRIAL REQUESTED
Plaintiff Nike, Inc. (“Nike” or “Plaintiff”) for its First Amended Complaint (“FAC”)
against Defendant StockX LLC (“StockX” or “Defendant”) for trademark infringement,
trademark dilution, counterfeiting, false advertising, and related causes of action alleges as
follows:
PRELIMINARY STATEMENT
1. This lawsuit arises fromOn February 3, 2022, Nike filed its original Complaint
(Plaintiff Nike, Inc.’s Complaint, February 3, 2022 [Dkt. No. 1] (“Complaint”)) in this action
because of Defendant StockX’s unauthorized and infringing use of Nike’s famous marks in
connection with StockX’s entry into the Non-Fungible Token market. Non-Fungible Tokens or
“NFTs” have quickly become pervasive in their use by brand owners seeking to enter the nascent
marketplace of virtual or digital products connected to a token on the blockchain. NFTs are
commonly understood to be blockchain-based virtual products that can be collected, sold, and
traded in the marketplace. They are an exciting way for brands to interact with their consumers
in and out of the “metaverse,” and diverse commercial applications of NFTs have emerged
throughout the past two years. Far more than a fleeting trend, NFTs are part of the future of
commerce.
2. Unfortunately, novel product offerings, burgeoning technologies, and gold rush
markets tend to create opportunities for third parties to capitalize on the goodwill of reputable
brands and create confusion in the marketplace. NFTs are, not surprisingly, no exception to the
rule, and this new frontier has swiftly become a virtual playground for infringers to usurp the
goodwill of some of the most famous trademarks in the world and use those trademarks without
authorization to market their virtual products and generate ill-gotten profits.
3. Enter Defendant StockX, the operator of an online resalesecondary market
platform for the resale of various brands of sneakers, apparel, luxury handbags, electronics, and
other collectible goods that purports to provide authentication services to its customers.
According to StockX’s Answer to Nike’s Complaint, StockX is different than other online
marketplaces because it “uses a proprietary, multi-step authentication process for every product
sold on its platform. This process ensures that items traded on StockX conform to the product
descriptions and condition standards advertised by StockX, and that the products offered for sale
are what they claim to be, and are not counterfeit, defective, or used—meaning StockX’s
customers can trust that transactions made through StockX are safe.” (Defendant StockX LLC’s
Answer, March 31, 2022 [Dkt. No. 21] (“Answer”) at 2.)
4. StockX publicly touts the fact that Nike products drive far more sales on its
e-commerce platform than any other brand, and StockX advertisements and social media
accounts are teeming with images of Nike goods. RecognizingStockX is even marketing and
selling Nike goods on its secondary market platform before Nike releases those goods to the
marketplace in the first instance. See https://stockx.com/new-releases/sneakers. StockX built its
secondary market business by exploiting the immense goodwill and reputation that Nike has
amassed through many years as the world’s leading designer, developer, marketer, and seller of
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athletic footwear and apparel. Now, recognizing firsthand the immense value of Nike’s brands,
StockX has chosenchose to compete inenter the lucrative NFT market, not by taking the time to
develop its own intellectual property rights, but rather by blatantly freeriding, almost exclusively,
on the back of Nike’s famous trademarks and associated goodwill.
5. 4. Specifically, without Nike’s authorization or approval, StockX is “minting”
NFTs that prominently use Nike’s trademarks, marketing those NFTs using Nike’s goodwill, and
selling those NFTs at heavily inflated prices to unsuspecting consumers who believe or are likely
to believe that those “investible digital assets” (as StockX calls them) are, in fact, authorized by
Nike when they are not. Unlike its e-commerce business which caters to buyers and sellers of
goods originating from various companies, nearly all the NFTs minted by StockX to date
areStockX launched its NFT venture almost exclusively with Nike-branded NFTs, yet none of
those NFTs originateoriginates from Nike. Examples of StockX’s infringing NFTs appear
below:
6. 5. StockX claims that its “100% Authentic” Nike-branded “Vault NFTs” do no
more than track ownership of a specific physical Nike product safely secured in its “vault.” But
StockX’s Vault NFTs are far more than just physical Nike shoes, and StockX’s claim that a
Vault NFT exclusively functions as a traceable digital receiptthat StockX has purportedly
authenticated using its “proprietary, multi-step authentication process” and is safely securing in
its “vault.” StockX’s post hoc rationalization that it is simply selling “claim tickets” with no
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value apart from the physical shoe is belied by its own statements, as well as the fact that those
purported “claim tickets” have sold for thousands of dollars above the price of the physical shoe
that said ticket supposedly claims. Those statements—some of which StockX has modified or
removed from its platform since this action was filed—reflect the fact that StockX’s
Nike-branded Vault NFTs, whose purchasers can trade or collect and displayadmire in their
portfolio“NFT Portfolios,” are, in fact, new virtual products that StockX has bundled with
additional StockX services (e.g., “Vault Services”) and unspecified benefits (e.g., “exclusive
access to StockX releases, promotions, events”). Nike does not sell StockX’s services or
exclusive access to such benefits. Yet StockX’s new virtual products have been created,
marketed, offered for sale, and sold by StockX using Nike’s trademarks without Nike’s consent.
And, according to StockX, it is “just getting started.” See
https://stockx.com/about/stockx-launches-vault-nfts/.
7. 6. Just as troubling arehave been other StockX statements that appear to negate
StockX’s primary claim that a Vault NFT can be readily traded in for the associated physical
shoes stored in a StockX facility. For example, while StockX claimsinitially claimed that Vault
NFT owners may “redeem” the NFT and take possession of the shoes (for an additional fee), it
also statessold the infringing Nike-branded NFTs while stating that “the redemption process is
not currently available” to NFT owners. StockX also, shockingly, retainssold the infringing
Nike-branded NFTs while retaining the right to unilaterally redeem a Vault NFT for a so-called
“Experiential Component,” and take away the NFT, completely depriving the Vault NFT owner
of possession of the shoes that are supposedly connected to the NFT. In the short time since
Nike initiated this action, StockX has repeatedly revised its statements to consumers, hoping to
erase some of the unsavory conduct that Nike’s Complaint identified. Those changes have done
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nothing to resolve Nike’s claims. Regardless, upon information and belief, by that point StockX
had already offered for sale and sold through its initial inventory of 558 infringing Nike-branded
Vault NFTs. StockX continues to earn revenue on secondary trades of those infringing
Nike-branded NFTs and, unless halted, StockX will continue minting, marketing, and selling
thousands of additional infringing Nike-branded Vault NFTs.
8. 7. Nike did not approve of or authorize StockX’s Nike-branded Vault NFTs.
Those unsanctioned products are likely to confuse consumers, create a false association between
those products and Nike, and dilute Nike’s famous trademarks. Indeed, consumers are already
questioning whether Nike authorized StockX to sell its infringing NFT products, asking how
StockX received “the licensing to sell NFTs with [N]ike branding.” See Paragraph 82101, infra.
StockX’s misappropriation of Nike’s famous trademarks and goodwill to buoy its entry into the
lucrative NFT and digital collectible market deprives Nike of its exclusive right to use its marks
in connection with this new commercial medium. In addition, the Vault NFTs’ inflated prices
and murky terms of purchase and ownership, as discussed further below, have already led to
public criticism of StockX and allegations that the Vault NFTs are a scam. StockX’s prominent
use of Nike’s trademarks in connection with these dubious virtual products has already generated
negative associations with Nike in a way that harms Nike’s reputation and the immense goodwill
that Nike has amassed in its brands. Consumers have even attributed StockX’s conduct to Nike,
with one consumer expressing that the Vault NFTs are “just a stupid scam for Nike to make
money.” See Paragraph 84103, infra (emphasis added).
9. 8. Despite StockX’s prominent use of Nike’s trademarks in connection with the
Vault NFTs, Nike has no control over the quality of the Vault NFTs whatsoever. Nike has no
say in how many Vault NFTs bearing its trademarks are released, where the Vault NFTs are
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released and traded, when the Vault NFTs are released, how the Vault NFTs are released, traded,
or redeemed, and at what price the Vault NFTs are sold.
10. 9. Nike’s widely publicized December 13, 2021 acquisition of RTFKT, a digital
art and collectible creative studio, demonstrates itsand Nike and RTFKT’s very recent launch of
the highly anticipated and revolutionary MNLTH and CryptoKicks™ NFTs, demonstrate Nike’s
recent investment in NFT technology and services, but and its sophistication in the NFT space.
Prior to these recent developments, however, Nike has been using its famous trademarks in
connection with virtual goods and digital applications for years. Given Nike’s longstanding use
in this space, StockX’s unauthorized and unapproved branding of Vault NFTs with Nike
trademarks is all the more likely to confuse consumers, create a false association between the
parties, jeopardize the capacity of Nike’s famous marks to identify its own digital goods in the
metaverse and beyond, and harm Nike’s reputation through an association with inferior digital
products. Nike therefore
11. As noted, StockX has justified its minting and sale of Nike NFTs by claiming that
the NFTs are associated with vaulted Nike shoes StockX has “authenticated” using a
“proprietary, multi-step authentication process” to ensure “that the products offered for sale are
what they claim to be, and are not counterfeit, defective, or used.” (Answer at 2.) StockX’s
defense to Nike’s Complaint has thus brought to the forefront its “100% Verified Authentic”
claim, “proprietary, multi-step authentication process,” and claim that “StockX’s customers can
trust that transactions made through StockX are safe.” (Id.) To be sure, given the inflated prices
of these so-called “claim tickets,” consumers should be able to trust to a certainty that the
vaulted Nike shoes purportedly associated with the Nike-branded NFTs are not counterfeit.
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12. Notwithstanding StockX’s repeated guarantees that every item sold through its
platform is “100% Verified Authentic,” since December 2021 and continuing through the filing
of this action, Nike has obtained from StockX four pairs of purportedly “authenticated”
Nike-branded shoes that Nike has verified are, in fact, counterfeit. Those four pairs of
counterfeit shoes were all purchased within a short two-month period on StockX’s platform, all
had affixed to them StockX’s “Verified Authentic” hangtag, and all came with a paper receipt
from StockX in the shoe box stating that the condition of the shoes is “100% Authentic.”
StockX’s refusal to accept returns of purportedly “100% Verified Authentic” products purchased
through its platform make it all the more important for consumers to be able to absolutely trust
that the Nike shoes purchased through StockX are not counterfeit.
13. Nike has no visibility into the StockX “vault” and whether any Nike shoes
contained therein are counterfeit. However, at least one of the four counterfeit pairs of Nike
shoes that Nike obtained from StockX is, in fact, a counterfeit pair of Air Jordan 1 Retro High
OG in the Black/Varsity Red-White colorway. StockX depicts the same shoe on one of the eight
Nike-branded NFTs for sale on StockX’s platform, which is also currently StockX’s top-selling
NFT by total volume sold:
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14. Given StockX’s statements that its “vaulted” shoes are sourced from its
marketplace and undergo the same “proprietary multi-step authentication process” as the shoes
Nike recently discovered were counterfeit, Nike is all the more concerned that StockX has linked
the infringing Nike-branded NFTs to counterfeit goods and sold those “claim tickets” to fake
shoes at heavily-inflated prices to consumers who had no opportunity to inspect the shoes before
reselling the NFT to another unsuspecting consumer.
15. For these reasons, Nike supplements and amends its Complaint to include
additional causes of action for counterfeiting and false advertising, and requests that the Court
swiftly and permanently stop StockX from continuing to sell Vault NFTs bearing Nike’s famous
marks, selling counterfeit Nike goods, and making false and/or misleading claims regarding the
purported authenticity of those goods.
THE PARTIES
16. 10. Nike is a corporation organized under the laws of the State of Oregon with a
principal place of business at One Bowerman Drive, Beaverton, Oregon 97005.
17. 11. On information and belief, StockX LLC is organized as a Michigan LLC with
its principal place of business located at 1046 Woodward Avenue, Detroit, Michigan 48226.
StockX LLC is an online marketplace and reseller of sneakers, streetwear, electronics, luxury
handbags, and other collectibles. StockX maintains various offices and/or facilities located in
New York, California, and Oregon, including a store and drop-off facility located at 237
Lafayette Street, New York, New York 10012.
18. 12. On information and belief, StockX is the owner and operator of
https://stockx.com (the “StockX Website”) and StockX mobile application (the “StockX App”),
where StockX conducts, inter alia, its online commercial activities.
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JURISDICTION AND VENUE
19. 13. This action arises under the trademark and, anti-dilution, counterfeiting, and
false advertising laws of the United States, 15 U.S.C. § 1051, et seq., and under statutory and
common law unfair competition. This Court has subject matter jurisdiction at least under 15
U.S.C. § 1121 and 28 U.S.C. §§ 1331 and 1338 because this action arises under federal
trademark law. This Court has supplemental jurisdiction over the remaining claims pursuant to
28 U.S.C. § 1367.
20. 14. This Court has personal jurisdiction over StockX because StockX has
committed, and continues to commit, acts of infringement and, dilution, counterfeiting, and false
advertising in this District, has conducted, and continues to conduct, business in this District
through the StockX Website, StockX App, and a physical store, offices and/or facilities located
in this District, and/or has engaged in continuous and systematic activities in this District.
21. 15. Personal jurisdiction is proper pursuant to N.Y. C.P.L.R. § 302(a) because
StockX regularly conducts, solicits, or transacts business in New York and in this District.
StockX created the StockX Website and StockX App, which are accessible to consumers in New
York, and direct false and/or misleading claims, counterfeit Nike goods, and the unauthorized
and infringing uses of Nike’s trademarks into New York and this District. StockX targets New
York consumers by operating the StockX Website and StockX App, by operating a physical store
and offices and/or facilities in New York, by employing employees in New York, and by
advertising, selling, and offering for sale StockX Vault NFTs through the StockX Website,
StockX App, and related social media accounts. Moreover, StockX is actively recruiting
employees for several open positions located in New York, New York, including a Director,
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Real Estate, a Sr. Engineering Manager – NFT and Checkout, a Senior Manager, NFT
Partnerships, and a Technical Lead – Notifications.
22. 16. Venue is proper in this District pursuant to 28 U.S.C. § 1391(b) because
StockX conducts and continues to conduct a substantial and significant amount of business in
this District, a substantial part of the events giving rise to these claims arose in this District, and
customer confusion is likely to occur in this District. Moreover, on information and belief, the
locus of StockX’s Vault NFT and Web3 initiative appears to be in this District. For example,
StockX’s Director, Innovation along with the lead software engineer responsible for developing
and launching StockX’s NFT offering are, on information and belief, located in New York.
Moreover, StockX’s January 18, 2021 announcement of its Vault NFT offering was issued by its
Editorial Director based in New York City. See
https://stockx.com/news/introducing-nfts-on-stockx/. StockX is also actively recruiting in this
District for employees to join its NFT and Web3 program. As just one example, StockX hasthis
year through the filing of this action StockX had postings for the following senior positions
located in New York: Sr. Engineering Manager – NFT and Checkout; and Senior Manager, NFT
Partnerships. See https://boards.greenhouse.io/stockx/jobs/5783991002; and
https://web3.career/senior-manager-nft-partnerships-stockx/15645.
FACTUAL BACKGROUND
NFTs and Blockchain
23. 17. While blockchains have myriad actual and potential uses, a primary use is to
serve as an ecosystem and ledger for blockchain-based assets, like cryptocurrencies (such as
Bitcoin (BTC) and Ether (ETH)) and NFTs. Much like banks track ownership of money in bank
accounts and process transfers from one account to another, storing the information privately,
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blockchain technology enables the transfer of ownership of cryptocurrencies and NFTs between
accounts, storing the information of the transfer of ownership in blocks of data visible for all to
see. A distinguishing and touted feature of blockchains is decentralization. Unlike bank or other
asset ledgers, which are typically maintained by one or more larger entities, blockchains can be
maintained by innumerable individuals and entities, acting relatively independently but
participating in a coordinated ecosystem. Today there exist many blockchains, the largest of
which supports the Bitcoin cryptocurrency, while the second largest of which, Ethereum,
supports a much broader set of assets, including both the Ether cryptocurrency and NFTs that are
stored and traded on the Ethereum blockchain network.
24. 18. Many blockchain-based assets, like cryptocurrencies, are “fungible.” Like
money in a bank account, each individual coin (or “token”) is not distinguishable from others
and is divisible. For this reason, cryptocurrencies may function as a medium of exchange.
25. 19. By contrast, certain tokens, referred to as “non-fungible tokens” or “NFTs,”
are both indivisible and uniquely identifiable. Their movement can be tracked from one
blockchain address to another via smart contracts. This feature makes it possible to use NFTs to
track ownership or licensed rights over assets, similar to a certificate of ownership or real estate
title.
26. 20. NFTs have been widely used to track ownership over rights (often a limited
license for personal use) to a new type of digital collectible, which may be a digital photograph,
video, artwork, sound recording, avatar, digital clothing, footwear and other products, or other
type of media. These NFT collectibles can be bought, sold, resold, and generally traded on
various platforms.
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27. 21. While such NFT collectibles have existed for years, beginning in early 2021
interest exploded. Many prominent apparel and consumer goods brands have successfully
launched and sold NFT collections, incorporating their trademarks, trade dress, and other
intellectual property into artwork associated with each NFT. These NFTs have taken many
different forms but have always closely connected the trademark owner with the digital asset. As
further discussed below, Nike is one such market entrant.
Nike’s Business and Valuable Trademark Rights
28. 22. Nike’s principal business activity is the design, development, and worldwide
marketing and selling of athletic footwear, apparel, equipment, accessories, and services.
29. 23. As a result of decades of Nike’s advertising, promotional, and marketing
efforts, Nike has established itself as a multibillion-dollar brand and the world’s leading
designer, marketer, and distributor of athletic footwear and apparel products which are sold in
connection with Nike’s famous trademarks. In addition to spending significant amounts in
support of advertising and promotion of its products and services, Nike conducts successful
marketing campaigns across various social media platforms, including Facebook, Twitter,
YouTube, Instagram, TikTok, and Snapchat, to further promote Nike’s products, services,
brands, and trademarks.
30. 24. Nike and its brands have achieved widespread recognition and fame
throughout the United States and the world. Among the purchasing public, Nike’s products and
services are instantly recognizable and are seen as high-quality, innovative, and dependable.
31. 25. Nike is the owner of the right, title, and interest in and to, inter alia, the
following trademarks registered on the Principal Register of the United States Patent and
Trademark Office (collectively, the “Asserted Marks”):
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Reg. No. Title Trademark Design Reg. Date Classes

1,370,283 AIR JORDAN AIR JORDAN 11/12/1985 25- Clothing,
(word mark) footwear
3,725,535 Air Jordan & 12/15/2009 25- Clothing,
Wings footwear,
Design*1 headgear
3,780,236 DUNK DUNK 4/27/2010 25- Footwear

(word mark)
3,627,820 JUMPMAN JUMPMAN 9/11/2007 25- Clothing,
headgear
Design Footwear

Design footwear,
headgear
18- Leather
and
imitations of
leather
978,952 NIKE NIKE 2/19/1974 25- Clothing,
headgear
1,214,930 NIKE NIKE 11/2/1982 25- Footwear
(word mark)
1,243,248 NIKE NIKE 6/21/1983 42- Retail
(word mark) footwear and
apparel
services
6,124,779 NIKE NIKE 8/11/2020 35- Retail
(word mark) store services
and on-line
retail store
services
1,238,853 NIKE & 5/17/1983 42- Retail
Swoosh footwear and
Design* apparel
services
1
* indicates unofficial, descriptive title.
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1,325,938 NIKE & 3/19/1985 25- Footwear

Swoosh
Design*
5,286,596 NIKE AIR NIKE AIR VAPORMAX 9/12/2017 25- Footwear

VAPORMAX (word mark)
977,190 Swoosh Design 1/22/1974 25- Footwear

footwear and
apparel
services
1,323,343 Swoosh Design 3/5/1985 25- Footwear

store services
and on-line
retail store
services
32. 26. The above U.S. registrations for Nike’s Asserted Marks are valid, subsisting,
unrevoked, uncancelled, and in full force and effect.
33. 27. Pursuant to 15 U.S.C. § 1065, of Nike’s Asserted Marks, the following
federally registered Nike trademarks are incontestable and constitute prima facie evidence their
validity, Nike’s ownership, and Nike’s exclusive right to use these marks:
a. Reg. No. 1,370,283 (AIR JORDAN word mark)
b. Reg. No. 3,725,535 (Air Jordan & Wings Design mark);
c. Reg. No. 3,780,236 (DUNK word mark);
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d. Reg. No. 3,627,820 (JUMPMAN word mark);
e. Reg. No. 1,558,100 (JumpMan Design mark);
f. Reg. No. 978,952 (NIKE word mark);
g. Reg. No. 1,214,930 (NIKE word mark);
h. Reg. No. 1,243,248 (NIKE word mark);
i. Reg. No. 977,190 (Swoosh Design mark);
j. Reg. No. 1,264,529 (Swoosh Design mark);
k. Reg. No. 1,323,343 (Swoosh Design mark);
l. Reg. No. 1,238,853 (Swoosh Design mark); and
m. Reg. No. 1,325,938 (Swoosh Design mark).
34. 28. Nike also owns extensive common law rights in the Asserted Marks for use in
connection with Nike’s goods and services. Nike uses the Asserted Marks on or in connection
with many of its products and services.
35. 29. Nike’s Asserted Marks identify, in the United States and throughout the
world, high-quality products and services designed, produced, and offered by Nike.
36. 30. Nike intends to continue to preserve and maintain its rights in the Asserted
Marks. Nike has continuously used the Asserted Marks in interstate commerce in connection
with the sale, distribution, promotion, and advertising of genuine Nike goods and services since
their respective dates of first use as noted on the federal trademark registration certificates. And,
as discussed further below, Nike has also used the Asserted Marks in connection with virtual
products and intends to further expand such use as reflected in its pending trademark
applications.
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37. 31. As a result of continuous and long-standing promotion, substantial sales, and
consumer recognition, Nike has developed powerful trademarks rights, built substantial goodwill
in the Asserted Marks, and has never abandoned that goodwill. As a result, Nike’s Asserted
Marks have become distinctive and “famous” within the meaning of Section 43(c) of the
Lanham Act, 15 U.S.C. § 1125(c).
38. 32. Having distinctive trademarks that are readily identifiable is an important
factor in creating and maintaining a market for Nike’s products, in identifying Nike and its
brands, and in distinguishing Nike’s products from the products of others.
39. 33. Nike maintains strict quality control standards for products bearing the
Asserted Marks. Genuine Nike products bearing the Asserted Marks are inspected and approved
by Nike prior to distribution and sale.
40. 34. Nike also maintains strict control over the use of the Asserted Marks in
connection with its products so that the company can maintain control over its reputation and
goodwill. Nike, for example, carefully determines how many products bearing the Asserted
Marks are released, and when, where, and how those products are sold.
Nike’s Activities in the Virtual Products Market
41. 35. Nike has used the Asserted Marks in connection with a variety of physical
goods and associated services for decades. Nike has also for some time incorporated the
Asserted Marks into its virtual products. For example, in October 2019, Nike, through its
SNKRS mobile application, partnered with 2K Sports, makers of the NBA 2K basketball
videogame franchise, to offer “Gamer Exclusives,” limited edition digital and physical Nike
sneakers that NBA 2K20 players can unlock through gameplay. See
https://news.nike.com/news/nba-2k20-x-nike-gamer-exclusives.
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42. 36. On October 27 and 28, 2021, Nike filed applications to register the following
trademarks with the United States Patent and Trademark Office for use in connection with, inter
alia, “[d]ownloadable virtual goods, namely computer programs featuring footwear,” (i.e., digital
sneaker NFTs) and “[r]etail store services featuring virtual goods, namely footwear” (i.e., a
digital sneaker NFT trading platform):
a. NIKE (word mark) (Serial No. 97095855);
b. JORDAN (word mark) (Serial No. 97096950);
c. (Serial No. 97096952);
d. (Serial No. 97096945);
e. (Serial No. 97095944); and
f. (Serial No. 97096366).
43. 37. On December 13, 2021, Nike announced that it had acquired RTFKT, a
leading digital art and collectible creative studio that has created some of the most popular
apparel-related digital artwork NFT releases to date, including the CYBERSNEAKER,
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METAJACKET, and FEWO Shoes, collectible digital sneakers designed in collaboration with
teenage pop artist FEWOCiOUS. See https://news.nike.com/news/nike-acquires-rtfkt.
44. 38. On or around January 18, 2022, Nike announced to its employees the
formation of Nike Virtual Studios, a new division that will operate as an independent studio to
further develop Nike’s business around virtual products and partner with its core business to
deliver best-in-class Web3, metaverse, and blockchain-based experiences.
45. 39. InOn February 7, 2022, Nike and RTFKT will release a number of virtual
products.released the MNLTH NFT collection by “airdropping” each NFT directly to the
then-current owners of RTFKT’s Clone X and PodX NFTs. The MNLTH NFT is depicted
below:
46. On April 22, 2022, Nike and RTFKT released the Nike Dunk Genesis
CryptoKicks™ NFTs, along with the Evo Skin Vial NFTs, which allow owners of the Nike
Dunk Genesis NFTs to customize the colorway of the digital shoes. Examples of the Nike Dunk
Genesis CryptoKicks™ and Evo Skin Vial NFTs are depicted below:
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47. 40. The Nike initiatives discussed above have been highly publicized, and, upon
the recent release of the successful RTFKT x Nike Dunk Genesis CryptoKicks™ NFTs reflects
Nike’s deep understanding of the NFT market. Upon information and belief, StockX has known
about Nike’s plans to expand into the NFT market long prior to its January 2022 “Vault NFT”
launch.
StockX’s Resale Platform
48. 41. StockX, like eBay, operates an online marketplace for the resale of sneakers,
streetwear, electronics, luxury handbags, and other collectibles accessible to consumers on the
StockX Website and StockX App. Upon information and belief, StockX does not sell goods
directly to consumers; rather, StockX’s users buy and sell goods from each other on StockX’s
platform. StockX is not an authorized distributor of Nike goods.
49. 42. Unlike the eBay model, however, StockX is an active intermediary for each
transaction—the seller ships the item to StockX, StockX receives and purportedly verifies the
item’s authenticity, StockX then ships the item to the buyer with a StockX-branded verification
badge, and StockX pays the seller (less its transaction fees). See
https://stockx.com/about/how-it-works/.
50. In fact, as StockX alleged in its Answer to Nike’s Complaint:
StockX uses a proprietary, multi-step authentication process for every product

sold on its platform. This process ensures that items traded on StockX
conform to the product descriptions and condition standards advertised by
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StockX, and that the products offered for sale are what they claim to be, and
are not counterfeit, defective, or used—meaning StockX’s customers can trust
that transactions made through StockX are safe. StockX has authenticated tens
of millions of products since its formation, combining its authentication team’s
expert knowledge with AI-enhanced technology to allow global customers to
trade with confidence.
(Answer at 2.)
51. StockX falsely and/or misleadingly claims on the StockX Website that every item
StockX sells on its e-commerce platform—including those items purportedly associated with the
Vault NFTs—has been independently verified by StockX as “100% Verified Authentic.”
Specifically, StockX states that “Every item sold goes through our proprietary multi-step
verification process with our team of expert authenticators.”
https://stockx.com/about/how-it-works/. According to StockX, its rigorous, multi-step
verification procedure uses “100+ data points,” and that its “authenticators are better equipped
than anyone to ensure a product’s authenticity.” https://stockx.com/about/authentication/.
StockX misleadingly claims that this “multi-step verification process” authenticating products is
somehow “proprietary,” despite the fact that StockX is not the entity that designed, created,
manufactured, packaged, or shipped in the first instance any genuine Nike goods, and despite the
fact that much of the process itself is openly displayed in a video found on StockX’s website.
StockX prominently advertises this guarantee of “100% Verified Authentic” and the value its
authentication services provide consumers throughout the StockX Website, as exemplified
below:
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52. On the StockX Website, StockX also advertises that it utilizes “Advanced
Technology” and “Quality Assurance” with respect to its authentication services and claims that
it employs quality assurance “experts” to ensure that only authentic goods are sold on its
platform:
53. StockX also claims that it has “compiled data from every fake product in the
history of StockX to build a comprehensive database of fake techniques around the world.” It
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also advertises an authentication accuracy rate of “99.95%” but does not explain how this
number is substantiated.
54. The confirmed purchase of counterfeit Nike goods on StockX’s
platform—including the same style purportedly associated with at least one of the infringing
Nike-branded Vault NFTs—confirms that StockX’s claims about its “proprietary multi-step
verification process,” “100% Verified Authentic,” and authentication accuracy rate of “99.95%”
are false and/or misleading.
55. 43. According to StockX’s most recent annual report, Nike’s brands and shoes
dominate StockX’s marketplace. For example, three of Nike’s brands—JORDAN, NIKE, and
CONVERSE—were the among the top five trading footwear brands by volume on StockX’s
marketplace in 2021:
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StockX’s Vault NFTs
56. 44. On January 18, 2022, StockX’s New York-based Editorial Director announced
the launch of StockX Vault NFTs, a collection of NFTs that StockX’s users purchase directly
from StockX through the StockX Website and StockX App. See
https://stockx.com/news/introducing-nfts-on-stockx/. StockX claims the Vault NFTs are
associated with a unique physical product held in StockX’s custody until the NFT owner
“redeems” the NFT in exchange for the associated physical product or some other benefit.
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57. 45. Unlike the physical goods StockX’s users may sell through its online resale
platform—which are manufactured and/or distributed in the first instance by Nike and other
brands or their authorized distributors—StockX’s Vault NFTs are virtual products, i.e., digital
collectibles, created and first offered for sale by StockX, and available direct to consumers for
purchase and trade on the StockX Website and StockX App.
58. StockX markets its Vault NFTs as exciting new product offerings. StockX
advertises to consumers that these “digital assets” can be traded or collected. StockX markets
the thrill of purchasing an NFT, not a “claim ticket” for goods available on its platform. For
example, StockX added a separate “NFT Portfolio” allowing owners of Vault NFTs to collect,
track, and display their NFTs.
59. StockX also modified its platform to allow consumers to shop for “NFTs” as a
new product “Category.” The NFT “Category” is separate from the categories of physical goods
that have been historically available for resale on StockX’s platform. Consumers can sort the
“NFTs” listed in the Category by “Release Date.” Those “release” dates correspond to the dates
that StockX first released each NFT, not the date that the original manufacturer first released any
purportedly associated physical product.
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60. Upon purchase of a Vault NFT, the StockX Website confirms to the consumer
that they have bought an NFT (not a pair of physical shoes) by stating: “Congratulations, you
successfully bought StockX Nike Dunk Low Retro White Black (Vault NFT) on StockX. The
NFT has now been added to your StockX Portfolio” and allowing the consumer to “share” the
NFT purchase via e-mail or social media:
61. At the point of purchase StockX also e-mails the Vault NFT consumer
confirmation that they have purchased an NFT (not a pair of physical shoes) by exclaiming in
large, bold font at the top of the e-mail: “You Bought an NFT!” The e-mail further states to the
consumer: “Congratulations! Your bid has been accepted. The NFT transfer can take a few
minutes. When the transfer is complete, your NFT will be available in your StockX Portfolio.”
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62. Nowhere on the StockX Order Confirmation Webpage or StockX Order
Confirmation e-mail does StockX expressly state that the consumer purchased a physical item
instead of an NFT. StockX does not inform the consumer that it bought a “claim ticket” linked
to an underlying physical item. StockX does not state: “Congratulations, you just bought a pair
of Nike or Jordan shoes.” Instead, StockX congratulates the consumer on purchasing an NFT
because the NFT is the product that the consumer purchased.
63. 46. Thus far, StockX has sold Nike-branded Vault NFTs at prices many multiples
above the price of the physical Nike shoe. For example, the 2022 version of the Nike Dunk Low
– Retro White Black (i.e., the physical pair of shoes) will retail for $100 from nike.com:
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According to StockX’s marketplace, as of February 2, 2022, the average sale price for the 2021
version of the shoes is $282:
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Yet, as of February 2, 2022, the average price of the Vault NFT purportedly linked to these shoes
is $809, with the highest trade being $3500:
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64. 47. Another example is the sacai x KAWS Blazer Low Neptune Blue size 10 M
which retails for $140 from nike.com:
According to StockX’s marketplace, as of February 2, 2022, the average sale price for the shoes
is $205:
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As of February 2, 2022, the average price, however, of the Vault NFT purportedly linked to these
shoes is $590, with the highest trade being $3995:
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65. These significant price discrepancies continue, and as of the current date certain
Nike-branded Vault NFTs are still selling for thousands of dollars above the price of the physical
shoe.
66. 48. As of the date Nike filed this action, StockX statesstated that the Vault NFTs
are minted on the Ethereum blockchain, “offering owners the opportunity to invest in current
culture, with cross-platform liquidity on the horizon.” See https://stockx.com/lp/nfts/. As of the
date Nike filed this action, StockX also statesstated that Vault NFT owners may be granted
exclusive access to StockX benefits, promotions, experiences, and rewards. Id.
67. 49. As of the date Nike filed this action, StockX further statesstated that NFT
owners may redeem the token to have the shoes delivered at any time. SimultaneouslyBut, as
shown below, StockX statesalso simultaneously stated that the “redemption process is not
currently available,” but may be sometime in the “near future.” See
https://stockx.com/help/articles/How-do-I-withdraw-my-item-from-the-Vault. If and when this
process becomes available, upon
Upon redemption, StockX states that it will remove the shoes from the vault, charge “a $35
withdrawal fee, a $14 shipping fee, and any applicable sales tax” on top of the price the owner
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paid for the Vault NFT, and ship them to the owner. See
https://stockx.com/help/articles/What-are-Vault-NFTs;
https://stockx.com/help/articles/How-do-I-withdraw-my-item-from-the-Vault; and
https://stockx.com/help/articles/What-fees-are-associated-with-Vault-NFTs. StockX will then
remove the Vault NFT from circulation by deleting it from the owner’s portfolio (i.e., StockX
will “burn” the Vault NFT). See, e.g., https://stockx.com/retro-black-and-white-dunk-vault-nft.
68. 50. StockX’s Terms and Conditions include, as of the date Nike filed this action,
included sections titled “Vault Terms” and “NFT Terms” (collectively, the “Vault NFT Terms”)
which govern the Vault NFT offerings. See https://stockx.com/terms.
69. 51. According to the Vault NFT Terms in place as of the date Nike filed this
action, when a consumer purchases a Vault NFT, the consumer gains title to both the purchased
Vault NFT (i.e., the digital collectible) and the Stored Item (i.e., the physical goods) to which the
NFT corresponds, and the consumer automatically makes use of StockX’s Vault Services (i.e.,
storage of the physical goods in StockX’s facility). Id.
70. 52. TheAs of the date Nike filed this action, the Vault NFT Terms also statestated
that (i) a Vault NFT (i.e., the digital collectible) has no value beyond that of the associated
Stored Item (i.e., the physical goods), and (ii) the Vault Services are currently provided by
StockX at no additional cost; however, a Vault NFT owner may be required to pay additional
fees if they elect to have a Stored Item shipped to them or if they use the Vault Services past
January 31, 2023. Id.
53. By purchasing a Vault NFT, owners agree that they will not attempt to sell the
physical goods to a buyer other than by selling the associated Vault NFT via the StockX
platform. Id.
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71. 54. Notably, under the Vault NFT Terms in place from launch through at least the
date Nike filed this action, StockX also retainsretained the right to unilaterally redeem a Vault
NFT for a so-called “Experiential Component,” and cancel or take away the NFT, i.e., the Vault
NFT owner never receives the physical version of the shoes or loses the opportunity to do so.
Specifically, the Vault NFT Terms statestated, “Note that in some cases, per the applicable
Additional NFT Terms, StockX may automatically redeem your NFT for an Experiential
Component,2 at its sole discretion, in which case StockX may remove the NFT from your
portfolio and you will cease to own the NFT.” See https://stockx.com/terms:
72. 55. Upon information and belief, the provision in Paragraph 5270 stating that the
Vault NFT has no value apart from the physical shoes directly conflictsconflicted with the terms
described in Paragraph 5471 above: because StockX retainsretained the right to redeem the Vault
NFT for an Experiential Component, the Vault NFT does, in fact, have value apart from the
physical shoes. The provision likewise directly conflictsconflicted with StockX’s other previous
statement that the Vault NFT includes additional benefits beyond the physical shoes, such as
“exclusive access to StockX releases, promotions, events, as a result of ownership.” See
https://stockx.com/lp/nfts/.
2
TheAs of the date Nike filed this action, the phrase “Experiential Component” iswas explained
and defined under the Vault NFT Terms as follows: “NFTs may take a variety of forms, and the
holders of NFTs may be entitled to obtain certain products, benefits or engage in certain
experiences, such as unlocking a prize or entry into an exclusive sale (“Experiential
Component”), as determined by StockX in its sole discretion, subject to any additional terms
provided by StockX with or in connection with the purchase of such NFT (“Additional NFT
Terms”).” See https://stockx.com/terms.
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73. Since Nike filed this action and, upon information and belief, after StockX
already sold off and provided a platform for the resale of all the infringing Nike-branded NFTs,
StockX repeatedly revised these terms and statements. For example, from January 18, 2022
through at least April 25, 2022, StockX included the following statements on its NFT landing
page, currently located at https://stockx.com/lp/nfts/, which Nike pointed out to the Court in a
statement filed on March 31, 2022 [Dkt. No. 23]:
At some point on or around April 25, 2022, StockX removed this language, replacing it with
statements that attempt to align with its defensive theme:
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74. None of StockX’s trivial, post-hoc changes have resolved its ongoing
infringement and dilution of Nike’s trademarks, and what StockX has opted not to change speaks
volumes: to date, StockX has not removed or in any way modified the prominent use and display
of Nike’s marks from the infringing Nike-branded Vault NFTs.
75. 56. As of February 2, 2022, StockX’s Vault NFT collection comprisescomprised
nine NFTs, as shown below. Eight of the nine prominently display Nike’s marks and are
associated with Nike products. Upon information and belief, StockX almost exclusively used
Nike’s marks to launch its Vault NFTs because it knew that doing so would garner attention,
drive sales, and confuse consumers into believing that Nike collaborated with StockX on the
Vault NFTs.
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76. 57. To date, upon information and belief, StockX has sold 558 individual
Nike-branded Vault NFTs. Some of the infringing Nike-branded Vault NFTs associated with
Nike products are editions of 1, others are editions of 100, and some are as many as editions of
250. Upon information and belief, StockX has also minted—but not yet sold—at least another
2,000 infringing Nike-branded Vault NFTs purportedly linked to Nike’s Air Jordan 11 Retro
Cool Grey shoes. Given that StockX is not an authorized Nike retailer, to the extent all
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corresponding physical Nike shoes exist at StockX’s “vault” facility, it is not clear where or how
StockX acquired that many pairs of “100% Authentic” Nike shoes.
77. 58. On the StockX product pages for its Vault NFTs, as shown below as of the
date Nike filed its action, StockX prominently displaysdisplayed Nike’s word marks in large,
bold text at the top of the page, and couples Nike’s marks with its own “Vault NFT” designation
in parentheticals in the same large, bold text.
78. 59. StockX also toutstouted each Vault NFTsNFT as “100% Authentic,” which,
upon information and belief, is intended to explicitly mislead consumers that Nike has
authorized, approved, sponsored, and/or endorsed StockX’s Vault NFTs.
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79. Further down the StockX product page for each Vault NFT as of the date Nike
filed this action, StockX providesprovided “Product Details,” which includesincluded a “Product
Description,” that also uses Nike’s marks. For example, StockX’s description for the Nike Dunk
Low Retro White Black (Vault NFT) opens with: “One of the most popular Nike Dunks of 2021
is now a part of StockX’s Vault NFT experience.”
60. If a consumer clicks on the “Read More” button, additional text appears, including “The Fine
Print,” which states: “If the physical item associated with this Vault NFT is redeemed by the
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owner, it is removed from the StockX Vault and shipped to the owner. StockX will then remove
the Vault NFT from the owner’s Portfolio and from circulation (i.e., ‘burn’ the Vault NFT).”
80. 61. As shown above, each of the eight Nike-branded Vault NFT’s is comprised of
Nike marks, including the only prominent eye-catching feature, a vivid image of a bespoke Nike
shoe. To the extent that the Vault NFT is merely supposed to function as a “digital receipt” for a
physical Nike shoe, there is no legitimate reason for StockX to prominently feature Nike’s
trademarks on the Vault NFT and the StockX product page. Indeed, when a consumer purchases
Nike shoes from the StockX marketplace, the consumer receives a paper receipt from StockX in
the package. Unlike a Vault NFT, upon information and belief, this paper receipt prominently
uses StockX’s own mark and only uses the Nike name in connection with the purchased shoe, yet
somehow still manages to function as a receipt for that Nike shoe:
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81. 62. In addition to the vivid image of the Nike shoe each Vault NFT purports to
represent, the StockX product page for each Vault NFT, as of the date Nike filed this action, also
displaysdisplayed a second image, the “back” of the Vault NFT, as shown below:
82. 63. As of February 3, 2022, StockX statesstated, in large font, “How It Works,”
with four bolded bullet points explaining, in simple terms, what users can do with a Vault NFT.
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Below the four bullet points, in comically and intentionally small, difficult-to-read font, StockX
also statesstated: “The purpose of the NFT is solely to track the ownership of and transactions in
connection with the associated product. The NFT does not independently authenticate the
associated product, nor is it affiliated or associated with, sponsored by, or officially connected to
Nike or any of its subsidiaries or affiliates. For more information on official Nike products,
please visit Nike.com.” Putting aside the ineffectiveness of this tiny disclaimer, and the
additional small print disclaimers added since this action was filed the “does not independently
authenticate” language appears to conflict with the “100% Authentic” on the product page.
83. 64. Upon information and belief, recognizing the tremendous value of the Nike
brand to consumers, StockX is also using Nike’s trademarks and images of Nike’s products to
promote its Vault NFTs on the StockX Website, StockX App, and on StockX’s social media
accounts. For example, as of the date Nike filed this action, StockX promotespromoted its Vault
NFTs on its website with the following images incorporating Nike’s products and trademarks:
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84. 65. StockX iswas also using Nike’s trademarks and images of Nike’s products on
paid Google Ads to promote its Vault NFTs:
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85. 66. As of February 2, 2022the present date, StockX’s Twitter account
displaysdisplayed a banner image depicting two Nike shoes, which appears to be the same image
used by StockX to promote the Vault NFTs on its website, as shown above:
86. 67. On January 18, 2022, to promote the launch of its Vault NFTs, StockX posted
to its Instagram account a series of images depicting Nike’s trademarks and products, including
the two shown below:
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87. 68. The full caption of the above Instagram post states: “NFTs are on StockX.
Introducing #StockXVault: a digital NFT that’s backed by a physical product and stored in a
StockX facility. This is just the beginning of our web3 future. Available for trading now. Links
to purchase in Product Tags and Stories. Welcome to the future of culture. Learn more at the
link in bio.”
88. 69. On January 26, 2022, StockX again promoted its Vault NFTs by posting to its
Instagram account a pair of images depicting Nike’s trademarks and product, including the one
shown below:
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89. 70. The full caption of the above Instagram post states: “A new #StockXVault
arrival: The Jordan 1 High Patent Bred. Limited to 250 editions, each size 10, and available for
trading immediately. Links to purchase in the Product Tags and Stories. Tap fast to add to your
portfolio.”
90. 71. Also on January 26, 2022, StockX tweeted a promotional video for the Jordan
1 Retro High OG Patent Bred Vault NFT:
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91. 72. As shown above, as of the date Nike filed this action, StockX iswas using
Nike’s trademarks to market, promote, and attract potential purchasers to its Vault NFTs.
StockX’s use of Nike’s marks is, upon information and belief, intentionally deceiving consumers
into believing that Nike sponsors or approves of the Vault NFTs.
92. 73. StockX’s Vault NFTs are not Nike products. There is no collaboration
between Nike and StockX, Nike did not provide a license to StockX to use its trademarks in
connection with the Vault NFTs, Nike did not create or inspect the Vault NFTs or authorize the
confusing and misleading Vault NFT Terms, and Nike did not authorize StockX to make,
promote, advertise, market, or sell the Vault NFTs.
93. 74. While StockX represents that the Vault NFTs are “backed by” and confer title
to genuine Nike products, StockX has bundledmarketed them as bundled with additional digital
goods, services, and unspecified benefits in such a manner that the Vault NFTs constitute new,
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unauthorized products created, marketed, offered for sale, and sold by StockX, exclusively on the
StockX Website and StockX App.
94. 75. Despite StockX’s prominent use of Nike’s trademarks and products in
connection with the Vault NFTs, Nike has no control over the quality of the Vault NFTs
whatsoever. Nike has no say in how many Vault NFTs bearing its trademarks are released,
where the Vault NFTs are released and traded, when the Vault NFTs are released, how the Vault
NFTs are released, traded, or redeemed, and at what price the Vault NFTs are sold and traded.
95. 76. As noted in Paragraphs 46-47 63-65 above, the Vault NFTs are presently
trading for inflated prices that are multiples higher than both the original retail price of the shoes
and the current resale price on the secondary market.
96. 77. The Vault NFTs’ inflated prices and murky terms of purchase and ownership
have already led to public criticism of StockX and allegations that the Vault NFTs are a scam.
For example, on January 19, 2022, Input Magazine published an article on its website entitled
“StockX’s ‘sneaker’ NFTs are kind of a scam hidden in plain sight.” The article’s author, Ian
Servantes, highlights the Vault NFT Terms that suggest the benefits of Vault NFT ownership
may be entirely illusory:
Owner’s [sic] of StockX’s limited series of sneaker NFTs will be

given exclusive access to the company’s releases, promotions, and
events, according to the announcement page. But if you dig further
into the term’s [sic] of service, as Sole Retriever did, you’ll find
that StockX has been given license to redeem your NFT for an
‘experiential component’ and even take away your ownership of
the NFT as a result of the transaction.
The initial offering for StockX’s NFTs have already sold out, so
let’s say you decide to engage in a secondary purchase for an NFT.
You purchase, say, the NFT for the Nike x Ben & Jerry’s “Chunky
Dunky,” which has an ask of $100,000 and a highest bid of $3,000.
Now that it’s yours you don’t get the actual sneaker, and at some
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point StockX can come in say, Here’s access to an early sale or a

discount, and by the way, that NFT is no longer yours.
Even in a field as fishy NFTs, StockX’s proposition smells like

one of the most obvious grifts you’re likely to see. In a bid to stand
out as different as NFTs, StockX has instead made tokens that
make it even more clear that you’re the mark.
See
https://www.inputmag.com/style/stockx-vault-nfts-sneakers-shoes-nike-off-white-
dunk-adidas-bad-bunny.
97. 78. The above impression of StockX’s Vault NFTs demonstrates that they have
been received by potential purchasers with suspicion and doubts about the integrity and
trustworthiness of StockX’s NFT business model. This example also shows that StockX’s
prominent use of Nike’s trademarks and products in connection with the Vault NFTs has already
generated negative associations with Nike’s trademarks and products that harm Nike’s business
reputation and the goodwill associated with its trademarks, in which Nike has invested immense
resources to develop over the past five decades.
98. 79. Upon information and belief, StockX has attempted to capitalize on Nike’s
valuable reputation and goodwill by using Nike’s Asserted Marks and/or confusingly similar
marks in a manner that is likely to cause consumers to believe that StockX’s Vault NFTs are
associated with Nike, when they are not. Indeed, as noted in Paragraph 6180 above, if StockX
merely intended to use NFTs as digital receipts as it claims, there would be no need to make such
extensive and prominent use of Nike’s trademarks. Upon information and belief, this prominent
use of Nike’s marks was intended to free ride on Nike’s immense goodwill and satisfy consumer
desire to own Nike-branded virtual goods, which owners can display in their portfolios.
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99. 80. StockX’s use of Nike’s trademarks and images of Nike’s products to promote
its Vault NFTs has already created confusion in the marketplace as to the Vault NFTs’ source
and whether Nike is in any way involved or associated with StockX’s Vault NFTs. For example,
immediately after StockX announced the Vault NFTs’ release, on January 18, 2022, users on
social media questioned the propriety of StockX’s Vault NFTs and whether Nike is “in on it
too,” while others “feel safe assuming Nike gets a cut of the fees that StockX takes from each
transaction.”
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100. 81. Consumer confusion as to whether Nike is associated with StockX’s Vault
NFTs was also immediately evident on Twitter, where, on January 18, 2022, a user replied to a
StockX tweet promoting the launch of its Vault NFTs, asking whether the Vault NFTS are
“endorsed/approved by Nike/Adidas etc?”:
101. 82. The following day, January 19, 2022, Reddit users on another thread under the
r/Sneakers subreddit wondered whether Nike had granted StockX a license to use Nike’s
“branding”:
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102. 83. On that same day, January 19, 2022, and same thread under the r/Sneakers
subreddit, another confused user expressed their (incorrect) belief that “Nike gets a small
commission every time an NFT is purchased,” and that StockX’s Vault NFTs are “a way for
Nike to get a piece of the huge pie of the resale market” while not bringing any added benefit to
the buyer:
103. 84. Additionally, on January 21, 2022, in response to a video posted earlier that
same day discussing StockX’s Vault NFTs, one confused TikTok user commented: “You can
just cash out of the nft for the actual shoe but I think it’s just a stupid scam for Nike to make
money.”
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104. Since the filing of this action, confusion has continued. In fact, once Nike began
sales of its own Nike-branded NFTs, the public has conflated the parties’ offerings. For
example, in an article republished multiple times since May 2, 2022 titled “Nike Takes A Major
Step Into The Metaverse,” the author incorrectly reports that the Nike/RTFKT Cryptokicks™
“makes its debut on StockX”:
The article goes on to report:
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See https://www.zenger.news/2022/05/02/nike-takes-a-major-step-into-the-metaverse/.
105. But Nike’s Dunk Genesis Cryptokicks™ NFTs did not debut on StockX, and
users of StockX’s platform cannot buy NFTs supported by Nike. This was precisely the sort of
confusion that Nike feared would ensue when it filed this action and began releasing genuine
NFTs.
StockX’s Counterfeit Sales and Claims of Authenticity
106. In addition to the infringing and dilutive conduct related to the Vault NFTs,
Nike’s continuing investigation into StockX’s conduct has also revealed that StockX has been
and is currently dealing in counterfeit Nike goods.
107. Between December 2021 and January 2022, Nike obtained from StockX’s
platform at least four pairs of counterfeit Nike shoes. Since the filing of this action, Nike has
confirmed that these four pairs of shoes are, in fact, counterfeit. As noted above, one of the
confirmed pairs of counterfeit Nike shoes is a counterfeit Air Jordan 1 Retro High OG in the
Black/Varsity Red-White colorway—the exact same style that StockX has purportedly linked to
one of its eight infringing Nike-branded Vault NFTs:
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108. In fact, as of the current date, StockX has sold 518 infringing Nike-branded Vault
NFTs that are purportedly linked to the same Air Jordan 1 Retro High OG in the Black/Varsity
Red-White colorway, making it StockX’s top-selling NFT by total volume sold:
109. Nike’s discovery of StockX’s recent dealing in counterfeit Nike goods is
consistent with numerous publicly available consumer complaints that Nike shoes guaranteed as
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“100% Verified Authentic” by StockX turned out to be counterfeit, including complaints
directed to StockX on its social media channels. Nike’s investigation remains ongoing and, upon
information and belief, StockX is selling and will continue to sell counterfeit Nike goods to
unsuspecting consumers.
110. StockX claims on the StockX Website that every item StockX sells on its
e-commerce platform—including those items purportedly associated with the Vault NFTs—has
been independently verified by StockX as “100% Verified Authentic.” The confirmed purchase
of counterfeit Nike goods on StockX’s platform—including the same style purportedly
associated with at least one of the infringing Nike-branded Vault NFTs—directly undermines
StockX’s “100% Verified Authentic” claims and its claims about the “proprietary multi-step
verification process” it employs to authenticate goods and renders these statements false and/or
misleading.
111. StockX’s “100% Verified Authentic” claims and its claims about the “proprietary
multi-step verification process” it employs to authenticate goods sold on its e-commerce
platform are material because StockX is misrepresenting an inherent quality or characteristic of
the Nike goods sold on its platform, i.e., that they are not counterfeit and have been authenticated
as genuine. Moreover, StockX’s claims are likely to influence consumer purchasing decisions
because consumers shopping for real Nike goods are more likely to purchase from StockX than
other channels based on StockX’s prominent claims about the authenticity of the Nike goods for
sale on its platform and based on its statements that its authentication process is proprietary, that
StockX authenticators are “better equipped than anyone” to confirm the authenticity of a product.
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112. On information and belief, an unknown number of consumers have been deceived
by and purchased counterfeit Nike goods or Nike-branded Vault NFTs based on StockX’s false
and/or misleading statements about the authenticity of the Nike goods for sale on its platform.
113. On information and belief, StockX knows that its false and/or misleading
statements about the authenticity of the Nike goods for sale on its platform deceives consumers.
Nevertheless, StockX continues to engage in such improper and unlawful business practices to
attract consumers to its platform and induce consumers to purchase supposedly genuine Nike
goods and purchase and trade the infringing Nike-branded Vault NFTs.
114. The continued sale of counterfeit Nike goods on StockX’s platform and StockX’s
false and/or misleading claims about its authentication process and verified authenticity have
caused and are causing Nike injury as a result of, inter alia, harm to reputation, diverted sales,
consumer confusion, dilution, and tarnishment of its valuable trademarks.
115. 85. By virtue of the acts complained of herein, StockX has created a likelihood of
injury to Nike’s business reputation and goodwill, caused a likelihood of consumer confusion,
mistake, and deception as to the source of origin or relationship of Nike’s products and StockX’s
Vault NFTs, and has otherwise competed unfairly by unlawfully dealing in counterfeit Nike
goods, making false and/or misleading statements, and trading on and using Nike’s Asserted
Marks without Nike’s permission.
116. 86. Unless stopped, StockX’s Vault NFTs and, StockX’s use of Nike’s Asserted
Marks, StockX’s dealing in counterfeit Nike goods, and StockX’s false and/or misleading
statements will continue to confuse consumers in the marketplace and dilute Nike’s famous
marks by blurring and tarnishment.
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117. 87. As noted above in Paragraph 56 above, StockX has already announced its
plans to expand its Vault NFT business, which will likely include additional uses of Nike’s
famous trademarks and products. In addition to StockX’s announcement referenced above,
StockX confirmed its plans to release additional Vault NFTs on Twitter:
88. This imminent expansion of StockX’s Vault NFT business exacerbates the harm Nike
has suffered and will continue to suffer as a consequence of StockX’s unauthorized use of its
trademarks.
118. Indeed, since this action was filed, Nike discovered that StockX has also
minted—but not yet sold—at least another 2,000 infringing Nike-branded Vault NFTs
purportedly linked to Nike’s Air Jordan 11 Retro Cool Grey shoes.
119. 89. StockX’s acts complained of herein are willful and deliberate.
120. 90. StockX’s acts complained of herein have caused damage to Nike in an amount
to be determined at trial, and such damages will continue to increase unless StockX is
preliminarily and permanently enjoined from their wrongful acts.
121. 91. StockX’s acts complained of herein have caused Nike to suffer irreparable
injury to its business. PlaintiffNike will suffer substantial loss of goodwill and reputation unless
and until StockX is permanently enjoined from the wrongful acts complained of herein.
FIRST CAUSE OF ACTION
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TRADEMARK INFRINGEMENT
15 U.S.C. § 1114
122. 92. Nike repeats and realleges each and every allegation in the foregoing
Paragraphs 1 to 91121 as if fully set forth herein.
123. 93. Nike’s Asserted Marks are on the Principal Register of the United States
Patent and Trademark Office.
124. 94. Through extensive and continuous use, Nike’s Asserted Marks and the
goodwill of the businesses associated with them in the United States and throughout the world
are of significant value, are highly distinctive and arbitrary or fanciful, and have become
universally associated in the public mind with Nike, its products and services, and the very
highest quality and reputation.
125. 95. StockX has knowingly used and continues to use in commerce, without
Nike’s permission or authorization, Nike’s Asserted Marks, and/or confusingly similar marks, in
connection with the sale, distribution, and advertising of its Vault NFTs.
126. 96. StockX’s conduct is intended to exploit the goodwill and reputation associated
with Nike’s Asserted Marks.
127. 97. StockX’s use of Nike’s Asserted Marks is likely to confuse, mislead, or
deceive potential consumers, purchasers, and the general purchasing public as to the source,
origin, sponsorship, or affiliation of the Vault NFTs with Nike, and is likely to cause such people
to erroneously believe that StockX’s Vault NFTs have been authorized, sponsored, approved,
endorsed, or licensed by Nike or that StockX is in some way affiliated with Nike.
128. 98. StockX’s unauthorized use of Nike’s Asserted Marks constitutes trademark
infringement of Nike’s federally registered trademarks, which has caused damage to Nike and
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the substantial business and good will embodied in Nike’s trademarks in violation of Section 32
of the Lanham Act, 15 U.S.C. § 1114.
129. 99. As a direct and proximate result of StockX’s wrongful acts, Nike has suffered,
Nike’s Asserted Marks, and to the business and good will represented thereby, for which Nike
has no adequate remedy at law.
130. 100. Nike is further entitled to recover from StockX the actual damages Nike has
131. 101. Upon information and belief, StockX has obtained gains, profits, and
advantages as a result of its wrongful acts and will continue to do so in an amount yet to be
determined.
132. 102. StockX’s use of Nike’s Asserted Marks and/or confusingly similar marks has
been intentional and willful. StockX’s bad faith is evidenced, in part, by the egregious and
prominent use of Nike’s Asserted Marks in connection with the sale and promotion of the Vault
NFTs, and the extensive nature of the infringement. Because of the willful nature of StockX’s
wrongful acts, Nike is entitled to an award of treble damages and increased profits under 15
U.S.C. § 1117.
133. 103. Because this is an exceptional case, Nike is also entitled to recover its costs
of suit and its attorneys’ fees pursuant to 15 U.S.C. § 1117.
SECOND CAUSE OF ACTION

FALSE DESIGNATION OF ORIGIN / UNFAIR COMPETITION
15 U.S.C. § 1125(a)
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135. 105. StockX’s unauthorized use of Nike’s Asserted Marks and/or confusingly
similar marks constitutes a false designation of origin that is likely to cause consumer confusion,
mistake, or deception as to the origin, sponsorship, or approval of StockX’s Vault NFTs by
creating the false and/or misleading impression StockX’s Vault NFTs are produced by,
authorized by, or otherwise associated with Nike.
136. 106. As a direct and proximate result of StockX’s wrongful acts, Nike has
suffered, continues to suffer, and/or is likely to suffer damage to its trademarks, business
reputation, and good will that money cannot compensate. Unless enjoined, StockX will continue
to use Nike’s Asserted Marks and/or confusingly similar marks and will cause irreparable
damage to Nike, Nike’s Asserted Marks, and to the business and good will represented thereby,
for which Nike has no adequate remedy at law.
U.S.C. § 1117.
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THIRD CAUSE OF ACTION

TRADEMARK DILUTION
15 U.S.C. § 1125(c)
141. 111. As a result of the duration, extent, and geographical reach of advertising and
publicity, the amount, volume, and geographical extent of Nike’s sales and trading areas, their
channels of trade, their degree of recognition, and registration, Nike’s Asserted Marks have
become distinctive and “famous” within the meaning of Section 43(c) of the Lanham Act, 15
U.S.C. § 1125(c).
142. 112. Nike’s Asserted Marks have become distinctive and famous prior to
StockX’s acts as alleged herein.
143. 113. StockX’s unauthorized and wrongful use of Nike’s Asserted Marks in
commerce has diluted and will, unless enjoined, continue to dilute, and is likely to dilute the
distinctive quality of Nike’s Asserted Marks, in violation of Nike’s rights under 15 U.S.C. §
1125(c)
144. 114. StockX’s unauthorized and wrongful use of Nike’s Asserted Marks in
commerce has tarnished and will, unless enjoined, continue to tarnish, and is likely to tarnish the
fame of Nike’s Asserted Marks by undermining and damaging the valuable good will associated
therewith, in violation of Nike’s rights under 15 U.S.C. § 1125(c).
145. 115. StockX’s acts as alleged herein are intentional and willful in violation of
Section 43(c) of the Lanham Act, 15 U.S.C. § 1125(c), and have already caused Nike irreparable
damage and will, unless enjoined, continue to so damage Nike, which has no adequate remedy at
law.
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147. 117. Upon information and belief, StockX has obtained gains, profits, and
advantages as a result of its wrongful acts and will continue to do so in an amount yet to be
determined.
U.S.C. § 1117.
FOURTH CAUSE OF ACTION

INJURY TO BUSINESS REPUTATION AND DILUTION
NEW YORK GENERAL BUSINESS LAW § 360-1
151. 121. Nike, on behalf of itself and the general consuming public, seek recovery
from StockX for violation of New York’s Anti-Dilution Statute, N.Y. Gen. Bus. Law § 360-1, et
seq.
152. 122. Nike’s Asserted Marks are commercially and conceptually strong
trademarks, which have become distinctive and acquired a secondary meaning capable of
dilution.
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153. 123. Nike’s Asserted Marks have become distinctive and acquired a secondary
meaning capable of dilution prior to StockX’s acts as alleged herein.
154. 124. StockX’s unauthorized and wrongful use of Nike’s Asserted Marks has
diluted and will, unless enjoined, continue to dilute, and is likely to dilute the distinctive quality
of Nike’s Asserted Marks, thereby diminishing the capacity of Nike’s Asserted Marks to
function as unique product identifiers for Nike’s goods and services.
155. 125. StockX’s unauthorized and wrongful use of Nike’s Asserted Marks has
tarnished and will, unless enjoined, continue to tarnish, and is likely to tarnish Nike’s Asserted
Marks by creating negative associations with Nike, its Asserted Marks, and the associated
business reputation and good will.
156. 126. StockX’s acts as alleged herein are intentional and willful in violation of
New York’s Anti-Dilution Statute, N.Y. Gen. Bus. Law § 360-1, et seq., and have already caused
Nike irreparable damage and will, unless enjoined, continue to so damage Nike, which has no
adequate remedy at law.
FIFTH CAUSE OF ACTION

COMMON LAW TRADEMARK INFRINGEMENT
AND UNFAIR COMPETITION
158. 128. Through its prior and continuous use of its Asserted Marks in commerce,
Nike’s Asserted Marks have become widely known, and Nike has been identified in the public
mind as the manufacturer of the products to which the Nike Asserted Marks are applied.
159. 129. Through its prior and continuous use of its Asserted Marks in commerce,
Nike enjoys exclusive common law rights in the Asserted Marks.
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160. 130. StockX’s use of Nike’s Asserted Marks is without any permission, license or
other authorization from Nike.
161. 131. StockX, with knowledge and intentional disregard of Nike’s rights, continues
to advertise, promote, and sell Vault NFTs using Nike’s Asserted Marks and/or confusingly
similar marks. StockX’s acts have caused, continue to cause, and/or are likely to cause confusion
as to the source and/or sponsorship of the Vault NFTs.
162. 132. StockX’s acts as alleged herein constitute common law trademark
infringement, and have already caused Nike irreparable damage and will, unless enjoined,
continue to so damage Nike, which has no adequate remedy at law.
163. 133. Upon information and belief, StockX committed the acts alleged herein
knowingly, willfully, wantonly, oppressively, fraudulently, maliciously, and in conscious
disregard of Nike’s rights, thereby entitling Nike to exemplary and punitive damages pursuant to
the common law of the State of New York in an amount sufficient to punish, deter, and make an
example of StockX.
SIXTH CAUSE OF ACTION

COUNTERFEITING
15 U.S.C. § 1114
to 121 as if fully set forth herein
165. Nike’s Asserted Marks are on the Principal Register of the United States Patent
and Trademark Office.
166. Through extensive and continuous use, Nike’s Asserted Marks and the goodwill
of the businesses associated with them in the United States and throughout the world are of
significant value, are highly distinctive and arbitrary or fanciful, and have become universally
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associated in the public mind with Nike, its products and services, and the very highest quality
and reputation.
167. StockX is acquiring, offering for sale, selling and shipping directly to consumers
shoes bearing counterfeits of the following Nike federally registered trademarks: Reg. No.
Reg. No. 3,627,820 (JUMPMAN word mark); Reg. No. 1,558,100 (JumpMan Design mark);
Reg. No. 978,952 (NIKE word mark); Reg. No. 1,214,930 (NIKE word mark); Reg. No. 977,190
168. StockX’s counterfeiting activities are likely to cause and actually are causing
confusion, mistake, and deception among the general consuming public as to the quality of
Nike’s authentic shoes. StockX’s unlawful acts are intended to reap the benefit of the immense
goodwill that Nike has created in its goods and constitute counterfeiting of the following Nike
federally registered trademarks in violation of § 32(1) of the Lanham Act, 15 U.S.C. § 1114(1):
Reg. No. 1,370,283 (AIR JORDAN word mark); Reg. No. 3,725,535 (Air Jordan & Wings
Design mark); Reg. No. 3,627,820 (JUMPMAN word mark); Reg. No. 1,558,100 (JumpMan
Design mark); Reg. No. 978,952 (NIKE word mark); Reg. No. 1,214,930 (NIKE word mark);
Reg. No. 977,190 (Swoosh Design mark); Reg. No. 1,323,343 (Swoosh Design mark); and Reg.
No. 1,325,938 (NIKE & Swoosh Design mark).
169. Unless enjoined, Nike will continue to suffer immediate and irreparable injury
and StockX will continue to deceive the public unless enjoined from its counterfeiting conduct.
Nike has no adequate remedy at law.
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170. Because StockX’s conduct was willful, Nike is entitled to statutory damages of up
to $2 million per counterfeit mark per type of goods or services sold, offered for sale, or
distributed, pursuant to 15 U.S.C. § 1117.
SEVENTH CAUSE OF ACTION

FALSE ADVERTISING
15 U.S.C. § 1125(a)(1)(B)
172. In its pervasive advertising and marketing, StockX explicitly claims and
guarantees that every item it sells—including those items purportedly associated with the Vault
NFTs—has been independently verified by StockX as “100% Verified Authentic” through its
“proprietary” process.
173. In connection with the advertising activities, StockX is falsely and/or
misleadingly claiming that all Nike products sold on StockX’s platform are “100% Verified
Authentic” genuine, non-counterfeit goods manufactured by Nike, when, in fact, StockX is
selling to consumers counterfeit Nike shoes. It is also claiming that its process for authenticating
products is somehow “proprietary,” despite the fact that StockX is not the entity that designed,
created, manufactured, packaged, or shipped in the first instance any genuine Nike goods.
StockX is therefore misrepresenting the nature, characteristics, and qualities of its goods and
services and is misleading consumers in the process.
174. Upon information and belief, StockX made these false and/or misleading
representations in order to take advantage of Nike’s immense goodwill and to induce consumers
to purchase Nike shoes on the StockX platform. Nike has an intense interest in stopping StockX
from deceiving and misleading consumers into believing consumers can blindly trust that all of
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the Nike shoes offered by StockX are genuine when they are not. StockX’s false and/or
misleading statements are causing immediate and irreparable injury to Nike, by injuring Nike’s
reputation in the marketplace, diverting consumer purchases of genuine Nike goods, and will
continue to damage Nike and deceive consumers unless enjoined by this Court.
175. StockX’s acts constitute false advertising and false representations in violation of
15 U.S.C. § 1125(a)(1)(B). Nike has no adequate remedy at law.
JURY DEMAND
Pursuant to Federal Rule of Civil Procedure 38(b), Nike hereby demands a trial by jury of
all issues so triable.
PRAYER FOR RELIEF
WHEREFORE, Nike respectfully prays for:
1. A judgment and order that StockX has willfully (A) infringed Nike’s Asserted
Marks and engaged in counterfeiting in violation of 15 U.S.C. §1114, (B) used false designations
of origin and made false and/or misleading statements in violation of 15 U.S.C § 1125(a), (C)
diluted at least the Nike Asserted Marks in violation of 15 U.S.C. § 1125(c), (D) injured Nike’s
business reputation and diluted at least Nike’s Asserted Marks violation of New York’s
Anti-Dilution Statute, N.Y. Gen. Bus. Law § 360-1, et seq., and (E) violated Nike’s common law
rights in Nike’s Asserted Marks;
2. A judgment and order enjoining StockX and StockX’s affiliates, officers, agents,
employees, attorneys, and all other persons acting in concert with StockX, during the pendency
of this action and permanently thereafter from:
a. Manufacturing, minting, transporting, promoting, advertising, publicizing,
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indistinguishable therefrom, or any other marks, names, symbols, or logos which
are likely to cause confusion or to cause mistake or to deceive persons into the
erroneous belief that any products that StockX caused to enter the stream of
commerce or any of StockX’s commercial activities are sponsored or licensed by
Nike, are authorized by Nike, or are connected or affiliated in some way with
Nike or Nike’s Asserted Marks;
b. Manufacturing, minting, transporting, promoting, advertising, publicizing,
indistinguishable therefrom, and/or confusingly similar marks;
c. Implying Nike’s approval, endorsement, or sponsorship of, or affiliation or
connection with, StockX’s products, services, or commercial activities, passing
off StockX’s business as that of Nike, or engaging in any act or series of acts
which, either alone or in combination, constitutes unfair methods of competition
with Nike and from otherwise interfering with or injuring Nike’s Asserted Marks
or the good will associated therewith;
d. Engaging in any act which is likely to dilute the distinctive quality of the
Nike Asserted Marks and/or injures Nike’s business reputation;
e. Representing or implying that StockX is in any way sponsored by,
currently affiliated with, or licensed by Nike; or
f. Engaging in the sale of counterfeit Nike goods;
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g. Claiming that every item sold on its platform is “100% Verified
Authentic” through a “proprietary” process or making any false and/or misleading
statements about its product authentication or verification process; or
h. f. Knowingly assisting, inducing, aiding, or abetting any other person or
business entity in engaging in or performing any of the activities referred to in
paragraphs 2(a) to (e) above;
3. An order that StockX be required to deliver to Nike for destruction any and all
Vault NFTs, associated footwear, digital files, packaging, printed graphics, promotional
materials, business cards, signs, labels, advertisements, flyers, circulars, and any other items in
any of their possession, custody, or control bearing Nike’s Asserted Marks, any marks
substantially indistinguishable therefrom, confusingly similar marks;
4. An order granting an award of damages suffered by Nike according to proof at the
time of trial;
5. An order that StockX account to Nike for any and all profits earned as a result of
StockX’s acts in violation of Nike’s rights;
6. An award of three times the amount of compensatory damages and increased
profits pursuant to 15 U.S.C. § 1117(a);
7. An award of three times such profits or damages, whichever amount is greater,
together with a reasonable attorneys’ fees, pursuant to 15 U.S.C. § 1117(b);
8. 7. An award of statutory damages pursuant to 15 U.S.C. § 1117(c);
9. 8. An order granting an award of punitive damages for the willful and wanton
nature of StockX’s aforesaid acts under the New York General Business Law and the common
law;
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10. 9. An order granting pre-judgment interest on any recovery by Nike;
11. 10. An order granting an award of Nike’s costs, expenses, and reasonable
attorneys’ fees; and
12. 11. Granting such other and further relief as is just and proper.
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Dated: February 3, 2022___________ Respectfully submitted,
By:
DLA PIPER LLP (US)
By: /s/ Tamar Y. Duvdevani

Tamar Y. Duvdevani
Marc E. Miller
Jared Greenfield
DLA PIPER LLP (US)
1251 Avenue of the Americas 27th FloorFl.
New York, New York 10020-1104
[email protected]
[email protected]
[email protected]
Telephone: 212.335.4500
Facsimile: 212.335.4501
Michael Fluhr
555 Mission Street
San Francisco, CA 9410
[email protected]
Attorneys for Plaintiff Nike, Inc.
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Amended Complaint Nike V StockX

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Amended Complaint Nike V StockX

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Case 1:22-cv-00983-VEC Document 33 Filed 05/10/22 Page 1 of 1

UNITED STATES DISTRICT COURT

DECLARATION OF TAMAR Y. DUVDEVANI IN SUPPORT OF NIKE INC.’S

I, Tamar Y. Duvdevani, declare as follows:

Amended Complaint comparing the revisions made to Nike’s original Complaint.

3. Attached as Exhibit B is a true and correct copy of a redlined version of the

filed on February 3, 2022 (Dkt. No. 1).

Executed on May 10, 2022 in New York, New York.

By: /s/ Tamar Y. Duvdevani

UNITED STATES DISTRICT COURT

than a fleeting trend, NFTs are part of the future of commerce.

2. Unfortunately, novel product offerings, burgeoning technologies, and gold rush

authorization to market their virtual products and generate ill-gotten profits.

2022 [Dkt. No. 21] (“Answer”) at 2.)

instance. See https://stockx.com/new-releases/sneakers. StockX built its secondary market

and associated goodwill.

5. Specifically, without Nike’s authorization or approval, StockX is “minting” NFTs

infringing NFTs appear below:

Nike’s consent. And, according to StockX, it is “just getting started.” See

branded Vault NFTs.

money.” See Paragraph 103, infra (emphasis added).

and at what price the Vault NFTs are sold.

Nike’s reputation through an association with inferior digital products.

purportedly associated with the Nike-branded NFTs are not counterfeit.

StockX are not counterfeit.

total volume sold:

reselling the NFT to another unsuspecting consumer.

purported authenticity of those goods.

principal place of business at One Bowerman Drive, Beaverton, Oregon 97005.

York, New York 10012.

conducts, inter alia, its online commercial activities.

JURISDICTION AND VENUE

has engaged in continuous and systematic activities in this District.

Director based in New York City. See https://stockx.com/news/introducing-nfts-on-stockx/.

and Senior Manager, NFT Partnerships.

NFTs and Blockchain

maintained by innumerable individuals and entities, acting relatively independently but

on the Ethereum blockchain network.

divisible. For this reason, cryptocurrencies may function as a medium of exchange.

25. By contrast, certain tokens, referred to as “non-fungible tokens” or “NFTs,” are

Nike is one such market entrant.

Nike’s Business and Valuable Trademark Rights

29. As a result of decades of Nike’s advertising, promotional, and marketing efforts,

with Nike’s famous trademarks. In addition to spending significant amounts in support of

instantly recognizable and are seen as high-quality, innovative, and dependable.

(collectively, the “Asserted Marks”):

Reg. No. Title Trademark Design Reg. Date Classes

1,742,019 JumpMan 12/22/1992 25- Clothing,

5,286,596 NIKE AIR NIKE AIR VAPORMAX 9/12/2017 25- Footwear

1,264,529 Swoosh Design 1/17/1984 42- Retail

1,323,343 Swoosh Design 3/5/1985 25- Footwear

5,794,674 Swoosh Design 7/2/2019 35- Retail

unrevoked, uncancelled, and in full force and effect.

Nike’s ownership, and Nike’s exclusive right to use these marks:

a. Reg. No. 1,370,283 (AIR JORDAN word mark)

b. Reg. No. 3,725,535 (Air Jordan & Wings Design mark);

c. Reg. No. 3,780,236 (DUNK word mark);

d. Reg. No. 3,627,820 (JUMPMAN word mark);

e. Reg. No. 1,558,100 (JumpMan Design mark);

f. Reg. No. 978,952 (NIKE word mark);

g. Reg. No. 1,214,930 (NIKE word mark);

h. Reg. No. 1,243,248 (NIKE word mark);

i. Reg. No. 977,190 (Swoosh Design mark);