Nike and StockX Settle Landmark NFT Trademark Battle - Web3 Legal Precedent Set

Sportswear giant Nike and marketplace titan StockX have quietly settled their high-stakes NFT trademark dispute, ending a three-year legal battle that threatened to redefine digital ownership rights.

The clash erupted when Nike alleged StockX's Vault NFT program infringed on its iconic trademarks—claiming the platform minted digital assets featuring Nike products without authorization. StockX countered that its NFTs served as proof of ownership for physical sneakers stored in their vaults.

Legal experts call this settlement a tactical retreat from what could've been a watershed case for Web3 branding. Both sides avoid costly litigation while preserving future NFT ambitions—though the terms remain confidential (naturally).

This resolution signals major brands are still figuring out how to protect legacy trademarks in the permissionless wild west of digital assets. Sometimes it's cheaper to settle than to set precedent—especially when your legal bills start looking like an influencer's NFT purchase history.

TLDR

• Nike, StockX settle NFT trademark feud, avoiding courtroom showdown.
• Sneaker NFTs spark legal clarity as Nike, StockX end lawsuit early.
• Nike wins key point; StockX settles to dodge full NFT trial risk.
• NFTs as trademarks? Nike’s lawsuit forces platforms to rethink tokens.
• Digital sneaker wars end quietly, but reshape NFT legal boundaries.

Nike and StockX have ended their three-year legal battle over trademark use in sneaker-linked NFTs. The agreement stops a jury trial previously scheduled for October and dismisses all claims with prejudice. This NFT trademark fight marks a major turning point in how intellectual property intersects with blockchain assets.

Lawsuit Ends Without a Jury Verdict

Nike filed the lawsuit in February 2022, accusing StockX of infringing on its trademarks through Vault NFTs. The tokens featured images of Nike sneakers, allegedly misleading customers about Nike’s involvement. StockX denied wrongdoing, stating the NFTs only served as proof of ownership for real sneakers.

Nike escalated its complaint in May 2022 by alleging that StockX sold counterfeit sneakers on its platform. The allegations gained strength in March 2025 when the court ruled in Nike’s favor on part of the case. StockX was found liable for selling several fake Nike sneakers to undercover buyers.

The court scheduled the unresolved claims for trial, but both parties agreed to settle in late August 2025. Thus, the NFT trademark fight avoided a public courtroom showdown, protecting both companies from reputational and legal risks.

NFTs at the Center of Legal and Market Pressure

The key issue was whether NFTs qualify as “goods” under the Lanham Act. In 2025, the US Ninth Circuit confirmed that NFTs linked to physical items fall under trademark protection. This ruling aligned with Nike’s claims and shaped the broader outcome of this NFT trademark fight.

StockX had argued that its Vault NFTs only tracked ownership, not brand affiliation. However, Nike maintained that unauthorized use of sneaker images diluted its brand. The settlement ended this standoff without a ruling on the full scope of NFT liability.

This case adds to the growing legal clarity around NFTs and trademark rights. Platforms now face stricter guidelines when tying tokens to branded physical goods. The NFT trademark fight made companies reconsider how they handle digital and IP assets together.

Industry Impact and RTFKT Shutdown

The lawsuit’s outcome echoes across the NFT and sneaker sectors. In December 2024, Nike shut down its digital studio RTFKT, citing a shift in strategy. The closure followed legal concerns and marked a retreat from experimental NFT ventures.

RTFKT had gained attention for combining NFTs with real sneakers, including partnerships with artists and Ethereum-based drops. However, operational and legal challenges led Nike to fold the studio’s services. That decision signaled declining tolerance for loosely regulated digital platforms.

The NFT trademark fight also impacted marketplaces’ handling of counterfeit risks. StockX’s 2025 Brand Protection Report said it blocked $10 million in fake shoes using RFID and CT scans. These changes suggest platforms will use tech to avoid future legal disputes.

The fight also affected funding trends. In 2025, firms raised $4.2 billion for environmentally friendly NFTs with verified supply chains. The NFT trademark fight forced investors and companies to align digital assets with strong compliance standards.