Creators behind the well-known Bored Ape Yacht Club collection, Yuga Labs, have recently claimed a significant legal success over artists Ryder Ripps and Jeremy Cahen concerning copyright violations. In a landmark judgment Ripps and Cahen are ordered to compensate Yuga Labs with nearly $9 million due to the verdict of damages and associated penalties.
TLDR
- Yuga Labs secures a courtroom victory amounting to $8.9 million in a copyright dispute against artists Ripps and Cahen for allegedly copying their coveted NFT collection.
- The court confirmed that Ripps and Cahen unlawfully used Yuga Labs’ trademarked elements and intellectual property, ruling they must cover damages, legal costs, and transfer relevant domains and digital assets to Yuga Labs.
- This case underscores the importance of copyright protection for NFTs and digital assets, signaling that legal protections will be sincerely upheld in this developing field.
- Though Yuga Labs has won the courtroom battle, the market value of the Bored Ape Yacht Club NFTs has plunged significantly, dropping to below 25 ETH from a breathtaking peak of 128 ETH in 2021.
- Cahen intends to challenge the $9 million consequence in the Ninth Circuit Court in California, hinting the legal tussle may continue.
With the dismissal of counterclaims, the federal court decisively ruled in favor of Yuga Labs, the rightful owner of the Bored Ape Yacht Club’s intellectual property. This ruling lays crucial groundwork for enforcing copyright laws in the digital and NFT space.
The heart of this legal battle is Ripps and Cahen’s 'RR/BAYC' NFT line, which paralleled the immensely prized Bored Ape Yacht Club series, thus infringing Yuga Labs’ exclusive rights.
In May 2022, Yuga Labs initiated legal action against the duo for misrepresentation, cybersquatting, and copyright violation. Following extensive litigation, the court sided with Yuga, mandating Ripps and Cahen pay over $1.5 million in damages and related legal expenses.
BREAKING
On a fateful Saturday, the Federal Court finalized its sentence in the matter with Yuga Labs.
Judgement Total: $9,112,496.50
(Note: The court documentation contains an error in my name spelling.)
An appeal is on the cards as we aim to contest the outcome in California’s Ninth Circuit Court.
Case is ongoing. ✊ pic.twitter.com/fHcEsbBL6a
— PAULY (@Pauly0x) February 3, 2024
A February 2nd, 2023 court decree severely increased the artists’ penalty to nearly $9 million in cumulative damages for illicit profits, attorney fees, court costs, and additional damages due to irreparable harm inflicted upon Yuga’s brand.
Ripps and Cahen have also been commanded to permanently relinquish all associated websites, social media profiles, NFTs, and promotional content to Yuga Labs for suitable disposal or destruction, stripping them of any benefit from misuse of BAYC’s intellectual properties. The stringent verdict highlights the gravity of online copyright infringements.
For Yuga Labs, this court decision reinforces the enforceability of trademark rights within the evolving Web3 landscape, yet the flagship NFT collection also endures tumultuous times. Ironically, as Yuga rejoices in the legal upholding of brand value, the NFTs’ market price has plummeted near historical lows.
After unprecedented heights near 130 ETH during the speculative frenzy of 2021, the current valuation languishes near 25 ETH, reflecting the broader downturn in both trade volume and demand since the onset of 2022’s prolonged crypto market downturn.
Despite asserting intellectual property rights, the fundamental notions of value and ownership in digital collectibles face uncertainty with their declining financial worth. Though Yuga’s brand protection is affirmed, the economic viability of their iconic NFT series remains challenged.
As Cahen lays plans to appeal the oppressive $9 million judgment, this prolonged copyright confrontation seems destined to stretch further, potentially advancing to California’s Ninth Circuit Court, prolonging the legal back-and-forth between the artists and Yuga Labs.
