- February 6, 2024
- Posted by: [email protected]
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In a groundbreaking legal development, NFT artist Ryder Ripps and his associate Jeremy Cahen are grappling with a significant setback as they are compelled to pay almost $9 million in profit disgorgement to Yuga Labs, the developer behind the Bored Ape Yacht Club (BAYC). The final court judgment, delivered by US District Judge John Walter on Friday, not only mandates the substantial financial penalty but also imposes a permanent ban on the duo’s use of the BAYC identifier in any logos or trademarks.
Beyond the monetary consequences, the court ruling compels Ripps and Cahen to promptly transfer any infringing intellectual property, encompassing codes, passwords, and credentials, to Yuga Labs within a tight two-week timeframe. Furthermore, the court instructs the disposal of any remaining Ryder Ripps/BAYC NFTs held by the artists, offering them the option to surrender these assets to Yuga Labs for burning.
The financial burden on Ripps and Cahen extends to approximately $7 million in legal fees incurred during the protracted legal battle. While Yuga Labs emerges victorious in what is now considered a landmark NFT case, Jeremy Cahen, using the moniker “Pauly0x” on X, reveals that the legal saga is far from over, with an appeal in progress at the Ninth Circuit Court of California.
The Ryder Ripps/Yuga Labs case holds monumental importance as it sets a precedent for protecting intellectual property and trademarks within the rapidly evolving NFT and cryptocurrency markets. This groundbreaking ruling underscores the legal avenues available for creators and companies to safeguard their intellectual property and trademarks, even within the decentralized and dynamic technological landscape.
Yuga Labs’ successful action against unauthorized NFT use serves as a crucial reminder of the imperative to respect intellectual property rights in the burgeoning NFT market. The legal dispute originated when Ripps and Cahen introduced the Ryder Ripps Bored Ape Yacht Club NFT collection in May 2022, closely resembling the popular Bored Ape series. Yuga Labs accused the duo of perpetuating Nazi symbolism, leading to a lawsuit filed in June.
The legal battle intensified as Yuga Labs alleged that Ripps and Cahen were responsible for the creation and promotion of “copycat NFTs,” thereby devaluing the authentic BAYC offerings. The court, in its findings, asserted that Ripps deliberately utilized identical trademarks to undermine the credibility of BAYC’s actual creator, fostering uncertainty among consumers regarding the association between RR/BAYC NFTs and the genuine BAYC.
Ripps attempted to counter the lawsuit in August by asserting that his NFTs constituted a form of appropriation art, intended as a form of artistic criticism. However, Judge Walter, in October, issued a decisive order, compelling Ripps and Cahen to pay Yuga Labs over $1.5 million in damages. This ruling followed an earlier judgment that found the duo guilty of trademark infringement, solidifying Yuga Labs’ position in the precedent-setting NFT case. The ongoing legal proceedings and the appeal underscore the complex and evolving nature of legal challenges within the rapidly growing NFT space.
