Yuga LabBored Ape Yacht Club (BAYC) is the outfit behind the NFT collection.
In their defense, Ripps and Cahen argued that their project, which introduces an ape that closely resembles BAYC, was developed as a satirical critique of Yuga Labs. The duo have gone on record, accusing the BAYC collection of incorporating racist nuances, 4chan memes, and cover-up Nazi iconography, which Yuga Labs has strongly countered.
In response, Yuga Labs filed a lawsuit in June 2022, claiming that Ripps and his collaborators intentionally caused confusion under the guise of satire. They claim that this is making his RR/BAYC creator millions in unfair profits while hurting his BAYC brand with their claims.
A United States District Court in California determined that the BAYC trademark owned by Yuga Labs is legal and enforceable. Defendant found that he used the BAYC mark without permission from Yuga Labs, which could lead to confusion. The court also ruled that given the strength of Yuga’s BAYC position in the market and the deceptive intent of his RR/BAYC project, the defendant’s use of her BAYC images was deemed fair use, according to Rogers’ test. Or we have determined that it does not fall under the category of artistic expression. .
Defendants have attempted to argue that intangible NFTs are not subject to the Lanham Act, which regulates trademarks, service marks and unfair competition. However, the judge refuted this argument, arguing that NFTs still constitute commodities due to their distinct, traceable and brand-linked characteristics.
Reply to Yuga Labs from Ripps and Cahen
Yuga Labs’ victory has broad implications for the Web3 industry, setting a precedent for holding counterfeiters accountable for their actions. The amount of damages Ripps should pay will be determined at a later trial, with estimates suggesting that the NFT sold for about $1.6 million to $2 million.
Ripps and Cahen’s attorney, Louis Tompros, shared the client’s position via email. He said, “Mr. Ripps and Cahen allege that RR/BAYC’s artistic projects are under First Amendment protection and that Yuga does not have a valid and enforceable trademark for NFT. They plan to appeal.” .”
Despite legal wins, the popularity of BAYC NFTs appears to be waning. coin gecko Data showing a steady decline in boring monkey prices since April 2022. Dune analysis Data reveals a significant drop in NFT trading volume on popular platforms in recent weeks.
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