American NFT Artists Ordered to Pay Bored Ape Yacht Club Creator $1.57 Million
A US district court judge has ruled in favor of Bored Ape Yacht Club (BAYC) creator Yuga Labs in a long-standing lawsuit against NFT artists Ryder Ripps and Jeremy Cahen. The judge has ordered the defendants to pay a total of $1.57 million in disgorgement and damages, as well as legal fees.
Violation of Copyright Laws
The lawsuit was filed by Yuga Labs in June 2022, alleging that Ripps and Cahen created copycat versions of its BAYC collectibles, violating copyright laws. In April 2023, a partial summary judgement was granted in favor of Yuga Labs, leading to the recent ruling.
Damages and Trademark Infringement
District court Judge John Walter awarded Yuga Labs $1.37 million as disgorgement of the defendants’ profits and an additional $200,000 in statutory damages for cybersquatting violations. The judge also determined that the trademark infringement constituted an “exceptional case,” allowing Yuga Labs to recover attorney fees and costs.
No Satire or Parody
Judge Walter rejected the defendants’ argument that their copycat versions were “satire” or “parody.” He ruled that the defendants intentionally infringed on Yuga’s BAYC trademarks with a bad faith intent to profit from them. The defendants continued to market and promote their copycat versions even after the partial summary judgement was delivered.
Free Speech Argument Rejected
In October 2023, Ripps and Cahen’s lawyers attempted to argue in a US appeals court that the lawsuit should be dismissed based on free speech grounds. However, the three-judge panel did not find their arguments convincing.
Hot Take: BAYC’s Ongoing Success
Bored Ape Yacht Club remains one of the most valuable NFT collectibles on OpenSea. Since April 2021, it has generated a trading volume of 1.32 million Ether (ETH) or $2.38 billion, with an average floor price of 27.4 ETH ($49,200).
By
By
By
By
By