Yuga Labs Emerges Victorious in BAYC Lawsuit with $9 Million Damages Awarded
After a high-profile legal battle over the unauthorized use of the Bored Ape Yacht Club’s copyrighted non-fungible tokens (NFTs), artists Ryder Ripps and Jeremy Cahen have been ordered by a federal court to pay $9 million in damages to Yuga Labs.
Dismissal of Counterclaims Leads to Massive Penalty
Ripps and Cahen, who launched the Ryder Ripps BAYC (RR/BAYC) collection, were found to have infringed upon Yuga Labs’ copyrights. The court initially ordered them to pay $1.57 million in damages and legal expenses. However, a recent court filing revealed that the penalty has escalated to almost $9 million, reflecting the severity of the copyright infringement.
Artists Ordered to Destroy Infringing Materials
In addition to the monetary damages, the artists are required to destroy any RR/BAYC NFTs they own or hand them over to Yuga Labs for disposal. This directive also applies to any related infringing materials, including promotional items and advertisements bearing the BAYC mark. Furthermore, they must relinquish all social media accounts and the smart contract associated with the RR/BAYC collection.
Dismissal of Counterclaims and Precedent Set
The counterclaims filed by Ripps and Cahen, including allegations of emotional distress and a plea for declaratory judgment of no defamation, were dismissed by the judge. This decision reaffirms Yuga Labs’ claims of false designation of origin and cybersquatting, establishing a precedent for the protection of intellectual property rights in the NFT industry.
Appeal Plans Announced by Cahen
Jeremy Cahen, also known as Pauly, is planning to appeal the court’s decision in the Ninth Circuit Court of California, suggesting that this legal saga may continue.
Hot Take: Yuga Labs Secures a Landmark Victory in NFT Copyright Battle
Yuga Labs’ triumph in the lawsuit against Ryder Ripps and Jeremy Cahen marks a significant win for copyright protection in the NFT space. The court’s decision to award $9 million in damages and dismiss counterclaims sends a strong message about the importance of respecting intellectual property rights. This ruling has implications for artists and creators involved in the NFT industry and highlights the need for proper licensing and authorization when utilizing copyrighted materials. As the NFT space continues to evolve, legal battles over intellectual property are likely to become more common, and this case sets a precedent that will shape future disputes and reinforce the rights of copyright holders.
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