NFT Legal Drama: Artists Ordered to Pay $9M to Yuga Labs
NFT artist Ryder Ripps and his associate Jeremy Cahen have been hit with a final court judgment ordering them to pay nearly $9 million in profit disgorgement to Bored Ape Yacht Club (BAYC) developer Yuga Labs. The judgment also permanently bans them from using the BAYC identifier in any logos or trademarks.
In addition, the court has ordered Ripps and Cahen to transfer any infringing intellectual property, including codes, passwords, and credentials, to Yuga Labs within two weeks. They are also required to dispose of any remaining Ryder Ripps/BAYC NFTs or surrender them for burning.
The order also states that Ripps and Cahen must cover approximately $7 million in legal fees resulting from the lawsuit.
NFT Legal Drama to Persist?
Despite the court ruling, Cahen has stated that they are pursuing an appeal in the Ninth Circuit Court of California, indicating that the case is ongoing.
BREAKING
On a Saturday, The Federal Court has entered its final judgement against me in my case vs. YugaLabs.
Judgement Total: $9,112,496.50
(Note: My name is misspelled in the order)
We are appealing this outcome in the Ninth Circuit Court of California.
Case is ongoing.
pic.twitter.com/fHcEsbBL6a
— PAULY (@Pauly0x) February 3, 2024
So, why is the Ryder Ripps/Yuga Labs case significant? It sets a precedent for protecting intellectual property and trademarks in the NFT and crypto markets, highlighting that creators and companies can legally defend their rights even in decentralized environments.
Yuga Labs’ actions against unauthorized NFT use emphasize the importance of safeguarding intellectual property in the NFT market.
Timeline of Yuga Labs’ NFT Legal Battle
Ryder Ripps and Jeremy Cahen launched the Ryder Ripps Bored Ape Yacht Club NFT collection in May 2022, which closely resembled Bored Apes. Yuga Labs filed a lawsuit in June, accusing them of creating and promoting “copycat NFTs” that devalued the authentic ones.
According to Yuga Labs, Ripps marketed and sold the collection using identical trademarks to those used by BAYC’s creator, intentionally causing confusion among consumers. In August, Ripps argued that his NFTs were appropriation art meant as artistic criticism.
In October, Judge Walter ruled in favor of Yuga Labs, ordering Ripps and Cahen to pay over $1.5 million in damages for trademark infringement. This recent judgment adds to their financial obligations in the legal battle.
Hot Take: NFT Artists Face Consequences for Trademark Infringement
The court’s decision in the Ryder Ripps/Yuga Labs case sends a strong message to NFT artists and creators. It establishes that intellectual property and trademarks can be protected within the NFT and crypto markets, even in emerging and decentralized tech environments.
The case highlights the need for artists to respect existing trademarks and avoid infringing on others’ intellectual property. It also demonstrates that legal action can be taken against those who engage in trademark infringement, resulting in significant financial consequences.
As the NFT market continues to evolve, it is crucial for artists and creators to understand and abide by intellectual property laws to avoid legal disputes and protect their own work.
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