A US appeals court has overturned a $9 million ruling in favor of Yuga Labs in its lawsuit against artist Ryder Ripps and business partner Jeremy Cahen, opening new chapters in the high-profile trademark infringement case involving NFTs.
Overview of Yuga Labs Case
Yuga Labs initially sued Ripps and Cahen in 2022, arguing that their NFT collection was a direct imitation of the Bored Ape Yacht Club (BAYC) collection owned by Yuga. Ripps has maintained that his work was a form of satire intended to critique perceived racist imagery in Yuga's designs.
Appeals Court Ruling
The appeals court ruled that Yuga Labs had not sufficiently demonstrated that the "Ryder Ripps Bored Ape Yacht Club" collection was likely to confuse consumers. The court also confirmed that NFTs qualify as "goods" under US trademark law, which could impact future disputes.
Future Trial Prospects
The case will return to a California federal court, where Yuga Labs will need to substantiate its allegations of trademark infringement and cybersquatting. The court rejected Ripps and Cahen's arguments that their use of Yuga's trademarks constituted "nominative fair use" or was protected under the First Amendment.
Thus, despite the overturning of the previous ruling, Yuga Labs' case will continue to unfold in court, providing an opportunity for in-depth analysis of trademark issues and NFTs.
