Nike is among the first major brands to join CEO Mark Zuckerberg’s metaverse movement, a rebranding of Facebook into the next platform of social connection that’s even more immersive and interactive than previously conceived.
The new technology will let you “socialize, learn, collaborate and play… and do almost anything you can imagine” within 3D spaces. Zuckerberg adds that the metaverse will feel as if you are “right there with another person or in another place.”
Alongside Facebook’s announcement, Nike is preparing for its own entry into the metaverse. Nike shared its intentions to make and sell Nike-branded virtual sneakers and apparel, telling CNBC News that the move is “the company’s first step toward rolling out virtual products in the metaverse space.”
On October 27 and 28, 2021, Nike filed seven trademark applications with the U.S. Patent and Trademark Office as a step into the metaverse space – including applications for “Nike,” the slogan “Just Do It,” the swoosh logo, as well as “Air Jordan” and “Jumpman” logos.
The Next Evolution of NFTs
The trademark filings are an effort to protect Nike’s market of virtual goods in the NFT and gaming spaces. Nike will now be able to sell digital apparel and sneakers that avatars would wear in the metaverse. Kick it with your friends at a sporting event or group exercise workout session wearing your favorite apparel and sneakers. Maybe you’ll even get to customize your own digital designs.
Furthering their immersion into the metaverse space, Nike posted job openings on October 23, 2021, for Virtual Material Designer I & II to create complex, groundbreaking virtual material designs through Footwear Materials Design and Innovation. These roles are part of the “Digital Product Creation group, a team focusing on igniting the digital and virtual revolution at Nike.” Countless other companies are posting #metaverse job openings as the direction of technology within social interaction, entertainment, educational, and work environments move further and deeper into a 3D virtual world.
According to a trademark attorney, Josh Gerben, while trademarks offer added protection deterring use of the brand in unlicensed ways, the trademark filings increase the value of the brand portfolio as they serve as a form of property.
Gerben explains, “You can imagine the value that Nike’s name or logo holds if you were just selling, so the more protection you build into your trademarks, arguably the more value you’re adding to the book value of the company.”
Earlier Actions
While an obvious step in the direction of the metaverse world, it’s not Nike’s first. Whether in NFTs or virtual online gaming, Nike has already been playing ball. In April 2019, Nike filed a patent to tokenize its “Cryptokicks” shoe ownership as nonfungible tokens NFTs on the Ethereum blockchain. The digital asset is tied to the physical product serving as its unique identifier of that pair of “CryptoKicks.”
Inherent in this relationship, there is an element of scarcity of the digital assets as each is tied to each real-world pair of sneakers. Then in May 2019, Nike partnered with Fortnite to have characters wear Nike-branded sneakers. Nike also struck deals with the online video gaming platform Roblox.
Overcoming Challenges
In the physical world of Nike-branded apparel and sneakers, global supply chain issues, due to congestion, longer transit times, shipping container shortages, and lengthy production shutdowns due to labor shortages, are causing Nike to lower their revenue forecasts for 2022. Perhaps, the duality of their online and offline products will help offset the pains of the reduced revenue expectations affecting the physical products. Regardless, the ‘Just Do It’ brand knows it’s a step in the right direction.
