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Virtual Shoes and Vault NFTs: First Sale, Fair Use or First Impression?

Recently filed U.S. federal court lawsuits are challenging the intellectual property rights of creators in the metaverse and the business models underlying certain non-fungible token (NFT) platforms.

One such lawsuit pits iconic athletic brand Nike against StockX, a global online resale marketplace. In the case, StockX refutes Nike’s description of their NFT offering and associated service as “‘virtual products’ or digital sneakers,” by explaining at length how this technology is used for authenticating, tracking and trading authentic physical or “IRL” products on the lawful secondary market.

In this Luxury Law Alliance article written by Melanie Howard, chair of Loeb’s Intellectual Property Protection and Luxury Brands practices and deputy chair of the Advanced Media and Technology department, and Advanced Media & Technology associate Lisa Wiznitzer, the authors examine the Nike v. StockX case and discuss its potential effect on IP rights in the metaverse.

Click here to read the full article on the Luxury Law Alliance’s website.