Nike Sues Sneaker Reseller For Allegedly Running ‘Organized Counterfeit Trafficking Community’
Nike is coming after a sneaker reseller that it claims sells fake Swoosh-branded shoes.
In a Dec. 15 lawsuit filed in a Florida District Court, Nike claimed that sneaker reseller Eben Fox, who goes by Cedaz, “brazenly promotes and sells counterfeit Nike goods on his various social media channels and apparently believes he can engage in this illegal conduct with impunity.”
The lawsuit describes Fox as the “ringleader of an organized counterfeit trafficking community” on messaging platform Discord that assists members in purchasing counterfeit goods. Nike also accused Fox of selling his wares via a website launched with shipping platform PandaBuy as well as via his social media accounts. In one video published to YouTube with over 600,000 views, Fox documented his process of returning a fake pair of Nike Air Force 1s to a Nike store for the cost of a real pair. (At the end of the video, he donated the real pair to what appeared to be a homeless person on the street.)
“Rather than attempt to hide his illegal activities, Fox openly flouts U.S. trademark and counterfeiting laws, documenting his misdeeds in social media posts and in videos regularly published to his monetized YouTube and TikTok accounts,” the suit read.
The complaint requests a ruling that stops Fox from “manufacturing, minting, transporting, promoting, advertising, publicizing, distributing, offering for sale, or selling any products (including but not limited to shoes and apparel goods)'” that infringe on Nike’s protected marks. Nike also seeks a financial award equal to three times the amount of compensatory damages and increased profits and as well as attorney fees and statutory and punitive damages.
“We disagree with the allegations made but we are planning to cooperate with Nike to resolve their concerns,” Joe Southron, counsel for the defendant and partner at Four Rivers law firm, said in a statement to FN.
FN has reached out to Nike for a comment.
Nike has come after alleged counterfeiters via legal means in the past. Nike’s lawsuit against StockX, which originated in early 2022 with accusations that the resale platform used logos and products trademarked by Nike to sell NFTs, was later bexpanded with claims alleging StockX had willingly sold counterfeit products and misrepresented its authentication services.
In September, Nike just secured a victory in a years-long legal battle against a sneaker customizing business it accused of infringing on registered trademarks.