Yuga Labs’ Landmark Victory: Bored Ape Copyright Lawsuit Settled for $9 Million
With significant legal victories, Yuga LabsThe creative force behind the Bored Ape Yacht Club (BAYC) NFT collection has won a landmark victory in a copyright infringement lawsuit against artists Ryder Ripps and Jeremy Cohen. The court ordered Ripps and Cahen to pay nearly $9 million in damages and fines to Yuga Labs, highlighting the seriousness of their copyright violations.
Maintaining legal precedent: copyright protection in the NFT space
This landmark ruling not only highlights the enforceability of copyright protection for NFTs, but also serves as an important precedent confirming the applicability of standard intellectual property laws to the burgeoning digital asset sector. This decision highlights the seriousness with which such laws must be followed and establishes a strong foundation for the protection of intellectual property rights in the digital age.
The heart of the legal dispute revolves around Ripps and Cahen’s ‘RR/BAYC’ NFT collection. This collection is strikingly similar to the esteemed Bored Ape Yacht Club collection, which leverages brand equity for personal gain. However, their project violated trademark and intellectual property rights exclusively owned by Yuga Labs, leading to legal action.
In May 2022, Yuga Labs filed a legal lawsuit against the artist for false indication of origin, cyber dumping, and copyright infringement under the U.S. Federal Trademark Act. After months of legal deliberations, the court clearly ruled in favor of Yuga Labs and ordered it to pay substantial damages and legal fees to Ripps and Cahen.
Destruction
On Saturday, a federal court issued a final ruling against me in my lawsuit against YugaLabs.
Total Judgment: $9,112,496.50
(Note: My name was misspelled on the order.)
We appeal this finding to the Ninth Circuit Court of California.
The case is ongoing. ✊ pic.twitter.com/fHcEsbBL6a
– Pauly (@Pauly0x) February 3, 2024
Appeal Is Coming: Legal Battle Continues Amid NFT Price Volatility
Despite the court’s decisive ruling, Cahen’s legal troubles are not over yet, as he plans to appeal the hefty $9 million fine in California’s 9th Circuit Court. As the legal battle continues, the economic climate surrounding the Bored Ape Yacht Club NFT reflects a stark irony. While Yuga Labs celebrates protecting its brand integrity, the floor price of NFTs has plummeted to near all-time lows.
The current market value of BAYC NFTs, which once reached all-time highs amid feverish speculation, remains at around 25 ETH, signaling broader challenges within the NFT market after the start of cryptocurrency winter in 2022. Claiming intellectual property rights represents a pivotal development, but the economic viability of digital collectibles is facing scrutiny amid market volatility.
While Yuga Labs essentially guarantees legal retaliation, the economic realities of the NFT landscape cast a shadow of uncertainty over the long-term sustainability of the most iconic collections. As Cahen’s appeal approaches, the legal wrangling between the artist and Yuga Labs shows no signs of abating, prolonging the saga of this high-stakes copyright dispute.
Also Read: PFP NFT: What is PFP NFT?