Legal Issues for Nike

“When we discover problems, we act,” then-CEO Mark Parker said in a statement to the Wall Street Journal in 2018. “We strive to make Nike a more inclusive culture and accelerate diverse representation on our leadership teams.” Nike`s lawsuit is just the latest example of notable companies and individuals pursuing legal means to protect their territory in the emerging NFT and Metaverse industries. French luxury fashion brand Hèrmes sued Mason Rothschild, a Los Angeles-based digital artist, in January for “trying to get rich quickly by appropriating the METABIRKINS brand to create, market, sell and facilitate the exchange of digital assets known as non-fungible tokens (“NFTs),” according to the lawsuit. The 14. It was filed in the United States District Court for the Southern District of New York. Rothschild created and sold “MetaBirkins,” NFT versions of the company`s Birkin bag. After its short legal battle with MSCHF over the company`s high-profile Jesus and Satan sneakers, Nike is tackling the increasingly problematic personalization market through a new lawsuit, with the Beaverton, Oregon-based sportswear giant claiming that it — and its hugely valuable brands — “face a growing threat of illegal infringement and dilution by others trying to weigh in. unfairly Nike`s successes in leveraging the value of the Nike brand to market counterfeit products. One of those third-party providers that wants to take advantage of Nike`s appeal and booming customization market? Drip Create. Salerno Owens refused to answer questions about his testimony, citing legal and ethical obligations. She is president and partner of the law firm Markowitz Herbold PC. Salerno Owens has represented Nike employees in the past, and his company could benefit financially from other businesses.

A StockX spokesperson told Fortune it does not comment on “ongoing legal issues.” In an allusion to the resistance it will inevitably receive from consumers on social media (see an example below) and beyond to file lawsuits, and in the recent recognition that trademark lawyers are increasingly compelled to consider and mitigate the public relations elements that accompany the introduction of litigation, Nike says it “has no desire to limit the individual expression of creatives and artisans, many of whom are among Nike`s biggest fans.” At the same time, however, he says he “cannot allow `customizers` like Drip Creationz to build a business on the backs of its most iconic brands, undermining the value of those brands and the message they convey to consumers.” Below, we describe some of these issues. To view Nike`s full detailed stories and overall ethics review, please sign up or subscribe. The case is the latest example in a growing series of cases focused on third-party modification of products and subsequent commercial offering of those products, in which brands` ability to control the unauthorized use of their famous trademarks is confronted with arguments focused on fair use and first-sale doctrine. The latter generally allows a person who has purchased a branded product to resell the same product under certain conditions without being held responsible for counterfeiting. Chanel is currently in the midst of litigation after initiating a trademark infringement and dilution case regarding the sale of jewelry made from purportedly genuine Chanel-branded buttons, while Rolex, Ralph Lauren, Swatch subsidiary Hamilton International, and a number of other brands have faced similar problems in the recent past. The Nike case is poised to be pivotal to the development of metaverse jurisprudence, as it has the potential to regulate the scope of a trademark owner`s right to regulate unauthorized use of its trademarks in NFTs. While the outcome of this case remains to be seen, other major brands are already seeking to protect their brands in this emerging space by filing trademarks to specifically protect virtual goods and services. Given the emerging uncertainty about how our current legal framework will apply in the Metaverse, registering virtual goods and services is a prudent decision for trademark owners as we do business in the rapidly growing digital economy. We examined a variety of ethical issues, including human rights, labour rights, supply chain management, pollution and toxins, habitats and resources, environmental reporting, the use of controversial technologies, political activities, anti-social financing, and animal rights. In the 3D virtual world known as Metaversum, pioneering companies are looking for ways to capitalize on the growing popularity of this new frontier. As expected, the use of trademarks and trademarks becomes an issue to be monitored.