Bored Ape Yacht Club creator wins lawsuit over copycat NFT collection

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Bored Ape Yacht Club creator wins lawsuit over copycat NFT collection
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A judge ruled in favor of Yuga Labs.

introduced the collection, alleging the pair misused the BAYC trademarks “in an attempt to trick community members into buying their NFTs instead of the official BAYC NFTs.” It also accused the pair of engaging in false advertising that sowed “confusion” among users.

Despite Ripps and Cahen’s claim that the RR/BAYC project is a matter of artistic expression, the court states that the series isn’t protected by the First Amendment. It’s simply “a collection of NFTs that point to the same online digital images as the BAYC collection,” the ruling states, while noting that “defendants’ NFT marketplace sales and Ape Market website contain no artistic expression or critical commentary.

The court also pushes back on claims that Yuga Labs actually doesn’t own trademark rights because NFTs are intangible. To back up its ruling, the court cites a recent copyright case, an unauthorized NFT line that uses images of fake Birkin bags. In that case, a New York court ruled that goods don’t have to be tangible in order for trademark laws to take effect and ordered MetaBirkins creator Mason Rothschild to pay $133,000 to Hermès.

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