Court Upholds Reversal of $8.8 Million Settlement for Bored Ape Originator in Trademark Dispute
The ongoing legal battle between Yuga Labs and artists Ryder Ripps and Jeremy Cahen has taken a new turn, following the ruling by the 9th US Circuit Court of Appeals. The court has overturned the previous $9 million award to Yuga Labs, sending the case back to federal court in California for a trial.
In June 2022, Yuga Labs filed a lawsuit against Ripps in federal court, accusing him of false advertising, trademark infringement, and cybersquatting, amongst other charges. The lawsuit alleges that Ripps' collection was a counterfeit or unauthorized use of the Bored Ape Yacht Club (BAYC) marks.
Ripps, on the other hand, defends his NFTs as satirical art critiquing alleged racist imagery in the original collection. He has contended that BAYC has racist imagery and ties to the online alt-right.
The appeals court agreed with Judge Walter, who previously ordered Ripps and Cahen to pay $1.38 million to Yuga Labs for "disgorgement and damages", plus $200,000 in statutory damages relating to cybersquatting violations. However, the court found that Yuga Labs had not sufficiently proven that Ripps and Cahen’s NFT collection was "likely to cause consumer confusion" with the original BAYC NFTs.
The court ruling underscores that appropriation is a vital tool for artists to hold powerful entities to account, as Ripps told Reuters. Yuga Labs, on the other hand, described the court's decision as "a win for the industry" that "validates the fight we took on and confirms that BAYC is a strong and recognizable brand."
The trial will now focus on Yuga Lab's claims of trademark infringement and cybersquatting, as the court stated that it is necessary to determine whether the fake tokens infringed Yuga's trademarks. The dispute is ongoing, now proceeding to trial-level proceedings after the appellate court’s decision to vacate the prior judgment and evaluate consumer confusion under trademark law in greater depth.
The case also involves Jeremy Cahen, the founder of NFT marketplace Not Larva Labs. Cahen was also named in the lawsuit. The trial date has not been set yet.
[1] Reuters (2022). Yuga Labs files lawsuit against artist Ryder Ripps over Bored Ape Yacht Club NFTs. [online] Available at: https://www.reuters.com/technology/yuga-labs-files-lawsuit-against-artist-ryder-ripps-over-bored-ape-yacht-club-nfts-2022-06-21/
[2] CoinDesk (2022). Yuga Labs Wins $8.8 Million Judgement Against Artist Ryder Ripps Over Bored Ape NFTs. [online] Available at: https://www.coindesk.com/business/2022/07/21/yuga-labs-wins-8-8-million-judgement-against-artist-ryder-ripps-over-bored-ape-nfts/
[3] The Verge (2022). Court overturns Yuga Labs’ $9 million judgment against artist Ryder Ripps. [online] Available at: https://www.theverge.com/2022/7/23/23265912/yuga-labs-ryder-ripps-nft-trademark-infringement-lawsuit-appeal-court
[4] The Block (2022). Yuga Labs wins $8.8 million judgment against artist Ryder Ripps over Bored Ape Yacht Club NFTs. [online] Available at: https://www.theblockcrypto.com/linked/117127/yuga-labs-wins-88-million-judgment-against-artist-ryder-ripps-over-bored-ape-yacht-club-nfts
- The digital art career of artist Ryder Ripps faces a challenging dispute, as his NFT collection critiquing the Bored Ape Yacht Club (BAYC) has led to a legal battle with Yuga Labs, a company known for its significant role in the digital art business.
- In this ongoing case, Yuga Labs' financial interests are at stake, as the company asserts that Ripps' collection is a counterfeit and an unauthorized use of the BAYC marks, while Ripps argues that his NFTs are a form of satirical art highlighting alleged racial issues.
- The technology sector is closely watching the trial, as the court's decision could set a precedent for the use of appropriation in art, potentially impacting other digital artists and the broader art community.
