Yuga Labs LLC, the company behind the Bored Ape Yacht Club (BAYC) NFT collection has settled its four-year legal battle with the artist Ryder Ripps and his business partner Jeremy Cahen. Yuga Labs’ claim related to the alleged copying and selling of counterfeit NFTs by Ripps and Cahen.
The case was initially brought when Ripps and Cahen launched a digital collection of NFTs called the RR/BAYC collection which was linked to Ripps’ campaign that Yuga Labs’ NFTs allegedly contained racist imagery. The RR/BAYC collection was a controversial alternative and made use of imagery used in the Bored Ape NFTs. The pair claimed their use of BAYC imagery in this way was a satirical work of conceptual art, therefore they were afforded protection under the US first amendment. Yuga Labs subsequently issued proceedings on the basis of trade mark infringement, false designation of origin, cybersquatting, and unjust enrichment.
In the initial claim, US District Judge John Walter summarily ruled in favour of Yuga Labs pre-trial, stating that Ripps and Cahen’s use of BAYC imagery would cause confusion amongst consumers in the digital marketplace and consequently awarding $1.5 million in damages to Yuga Labs – though the total award (legal fees and other costs) was over $8.8 million. Walter’s decision was then overturned in the 9th U.S. Circuit Court of Appeal, which decided that a trial was needed to determine whether Ripps and Cahen’s NFTs did infringe Yuga Labs’ BAYC trade marks.
Though the financial terms of the settlement are confidential, according to documents filed with the US District Court for the Central District of California, the agreement prohibits Ripps and Cahen from using any BAYC trade marks and/or imagery now or in future. Additionally, the Defendants must transfer any smart contracts, domains and remaining NFTs relating to the RR/BAYC project to Yuga Labs for destruction.
If you have any questions on the above, please do not hesitate to contact the team at McDaniels Law on 0191 281 4000 or legal@mcdanielslaw.com.
