A US district court in California recently ruled in favor of Yuga Labs in a non-fungible token (NFT) copyright infringement case against artists Ryder Ripps and Jeremy Cahen. The court ordered the artists to pay $9 million in damages, covering disgorgement and other statutory damages.
Cahen, known as “Pauly0x” on X (Twitter), announced the artists’ intention to appeal the verdict in the Ninth Circuit Court of California.
Origins of the Legal Battle: Yuga Labs vs. Ryder Ripps and Jeremy Cahen
The legal dispute began in July 2022 when Yuga Labs filed a complaint against Ripps and Cahen for releasing an NFT collection called Ryder Ripps Bored Ape Yacht Club (“RR/BAYC”). Yuga Labs claimed that the collection bore similarities to their original creation, potentially misleading the public. The artists were accused of false advertising, false designation of origin, and trademark infringement.
In October 2023, US District Court Judge John Walter ruled in favor of Yuga Labs, awarding the company approximately $1.6 million in damages, in addition to legal fees.
Growing Legal Landscape: NFTs and Intellectual Property Concerns
The case involving Yuga Labs against Ripps and Cahen is one of the earliest and most significant legal battles related to NFTs and copyright infringement, reflecting growing concerns as NFTs gain popularity.
In a similar instance in February 2023, Hermès won an intellectual property trial against Mason Rothschild’s NFT project “MetaBirkins,” which sold digital art representing the famous Hermès bag model, Birkin, resulting in $133,000 in damages.
As NFTs gain popularity, more and more concerns arise about copyright issues within the space. The unique digital nature of NFTs raises questions about the ownership and reproduction of copyrighted content. It’s essential for artists and buyers to exercise caution and ensure that they have the proper rights to the digital assets they’re trading. Navigating these legal complexities will be crucial to ensure a balance between innovation and protecting intellectual property rights.
