Yuga Labs, creator of the popular Bored Ape Yacht Club (BAYC) NFT collection, has emerged victorious in its trademark infringement lawsuit against Ryder Ripps and Jeremy Cahen. In a pre-trial summary judgment, a federal judge ruled that Yuga Labs is entitled to an injunction and damages from the duo.
Yuga Labs referred to the judgment as not just a win for them, but “a win for the entire Web3 industry”. The RR/BAYC NFT collection was a creation that contained identical copies of Bored Apes and used marketing material similar to that of the Bored Ape Yacht Club.
According to Ripps and Cahen, the RR/BAYC NFT collection was a satirical and critical response to Yuga Labs. The duo claims that the Bored Ape NFTs depict racist and subtle Nazi references.
However, the U.S. District Court in California found on April 21 that Yuga Labs is the rightful owner of the BAYC trademarks, which are legitimate and enforceable.
Moreover, it was determined that Ryder Ripps and Jeremy Cahen utilized these trademarks without the consent of Yuga Labs, potentially causing confusion amongst potential buyers looking to purchase an authentic Bored Ape NFT.
Ryder Ripps and Jeremy Cahen had previously argued that the RR/BAYC collection was only a parody and thus protected under the first amendment as a form of expression.
However, Judge F. Walter, who presided over the case, ruled that their use of the BAYC trademarks did not fall under the category of fair use or artistic expression.
Although the court made it clear that “Yuga Labs is entitled to monetary damages and injunctive relief”, it denied the BAYC creators’ motion with respect to the determination of damages in their case.
According to the court’s ruling, the issue of damages will be determined during a trial. Yuga Labs had initially asked for a $200,000 statutory damage, but this claim was dismissed by the presiding judge.
