KEY POINTS
A U.S. district judge in the Southern District of New York has ruled that the widely disputed MetaBirkin non-fungible tokens (NFTs) can be featured in an exhibition at the Spritmuseum in Stockholm this autumn.
The decision is somewhat surprising given the outcome of a previous intellectual property trial involving Hermès and Sonny Estival, also known as Mason Rothschild. Estival created the MetaBirkin project, comprising 100 unique NFTs depicting Birkin-shaped bags with faux fur, launched in 2021.
The collection garnered significant attention, amassing over 250 ETH in trading volume, equivalent to more than $420,000 at the time. Each NFT had a minimum price of 3.8 ETH, roughly $6,200.
However, a Manhattan federal jury determined that Estival’s NFT version of Hermès’ iconic Birkin bag infringed upon trademark rights. The jury found that the NFTs resembled the original bags too closely, causing confusion and misleading buyers. Estival was ordered to pay $133,000 in damages to Hermès.
In March, a U.S. District Court judge prohibited Estival from showcasing the digital tokens in an upcoming exhibition in Stockholm, citing concerns about potential confusion regarding sponsorship or approval by Hermès.
As reported by WWD, a judge has now allowed the MetaBirkins to be displayed in the exhibition under certain conditions. Estival and the museum must prominently disclose to visitors that a jury found Estival intentionally designed the NFTs to mislead the public into believing they were sponsored by Hermès.
This legal dispute is not the first involving NFTs and trademark violations. Yuga Labs, the company behind the Bored Ape Yacht Club (BAYC) collection, faced a similar situation. Ryder Ripps was accused of duplicating artworks from the BAYC collection, leading to confusion within the community.
In October 2023, Yuga Labs won in the copyright lawsuit against Ripps, with a California federal judge awarding the company $1.6 million in damages and legal fees. In February 2024, Ripps and Jeremy Cahen faced a $9 million penalty in another copyright lawsuit filed by Yuga Labs.
