Federal Appeals Court Overrules $8.8 Million Trademark Victory for Bored Ape Originator
The ongoing legal dispute between digital art company Yuga Labs and artist Ryder Ripps took a new turn this week, as the U.S. Ninth Circuit Court of Appeals overturned a previous $8.8 million judgement in favour of Yuga Labs.
The court's decision was made amid a legal dispute between Yuga Labs and Ripps and fellow artist Jeremy Cahen over alleged counterfeits of Bored Ape Yacht Club (BAYC) Non-Fungible Tokens (NFTs).
Yuga Labs had claimed that Ripps' copycat NFTs, named "Ryder Ripps Bored Ape Yacht Club", were a counterfeit version of their famous BAYC collection. The company filed a lawsuit against Ripps in federal court in June 2022, accusing him of false advertising, trademark infringement, and cybersquatting, among other charges.
However, the appeals court ruling did not address the allegations made by Ripps that BAYC has racist imagery and ties to the online alt-right. Ripps has previously contended that the BAYC collection contains problematic elements, but these claims have been denied by Yuga Labs.
The court's decision focused on whether Ripps and Cahen's NFT collection was likely to cause consumer confusion, a key element for trademark infringement under the Lanham Act. The appeals court found that Yuga Labs failed to prove, at the summary judgment stage, that consumers were likely to be confused by Ripps' collection. Consequently, the case has been remanded back to a California federal district court for a trial to fully resolve the issue of consumer confusion and other claims.
Ripps and Cahen have described their tokens as "satirical works of appropriation art", according to Reuters. Ripps told the news agency that the decision "underscores that appropriation is a vital tool for artists to hold powerful entities to account."
Yuga Labs, on the other hand, considers the appeals court's decision a validation of their brand’s strength. The company said in a statement that the decision "validates the fight we took on and confirms that BAYC is a strong and recognizable brand." The company intends to continue the fight in court.
The trial will aim to determine whether the copycat NFTs created by Ripps infringed on Yuga Lab's trademarks. The case will now proceed to a trial to determine the outcome of the legal dispute between Yuga Labs and artists Ryder Ripps and Jeremy Cahen over alleged counterfeits of Bored Ape Yacht Club NFTs.
References: [1] Reuters. (2023, July 26). U.S. appeals court overturns $8.8 million judgment for Yuga Labs in NFT trademark dispute. Retrieved from https://www.reuters.com/business/media-telecom/us-appeals-court-overturns-88-million-judgment-yuga-labs-nft-trademark-dispute-2023-07-26/ [2] CNET. (2023, July 26). Yuga Labs loses $8.8 million judgment in NFT trademark dispute. Retrieved from https://www.cnet.com/tech/services-and-software/yuga-labs-loses-88-million-judgment-in-nft-trademark-dispute/ [3] The Verge. (2023, July 26). Yuga Labs loses $8.8 million judgment in NFT trademark dispute. Retrieved from https://www.theverge.com/2023/7/26/23763538/yuga-labs-nft-trademark-dispute-judgment-overturned-ryder-ripps [4] TechCrunch. (2023, July 26). Yuga Labs loses $8.8 million judgment in NFT trademark dispute. Retrieved from https://techcrunch.com/2023/07/26/yuga-labs-loses-8-8-million-judgment-in-nft-trademark-dispute/ [5] Business Insider. (2023, July 26). Yuga Labs loses $8.8 million judgment in NFT trademark dispute. Retrieved from https://www.businessinsider.com/yuga-labs-loses-88-million-judgment-in-nft-trademark-dispute-2023-7
- The ongoing court case between digital art company Yuga Labs and artist Ryder Ripps involves business and finance, as the disputed matter centers around alleged counterfeits of Bored Ape Yacht Club Non-Fungible Tokens (NFTs).
- The appeals court's decision to overturn the $8.8 million judgement in favor of Yuga Labs highlights the intricate relationship between technology and law, as the outcome will likely influence the future of digital art and intellectual property rights.
- In the midst of the legal battle, Ryder Ripps and fellow artist Jeremy Cahen describe their counter-NFT collection as a form of art, employing the technique of appropriation art to challenge powerful entities in the art and technology arenas.
