Key Highlights
- Yuga Labs settled its lawsuit with Ryder Ripps and Jeremy Cahen over allegedly copying Bored Ape NFTs.
- Ripps and Cahen are permanently barred from using Yuga’s images and trademarks.
- The settlement avoids a trial that would have decided whether their NFTs infringed Yuga’s trademarks.
Yuga Labs, the company behind the Bored Ape Yacht Club (BAYC) non-fungible tokens (NFTs), has settled its lawsuit against artist Ryder Ripps and his partner Jeremy Cahen in California federal court on April 7. The case centered on allegations that Ripps and Cahen copied Yuga’s NFT images in their RR/BAYC project.
As part of the agreement, the court will issue an order to stop Ripps and Cahen from using Yuga’s images and trademarks. Meanwhile, the settlement amount has not been publicly disclosed.
How it started
The lawsuit started in 2022 when Yuga Labs claimed that Ripps and Cahen sold lookalike NFTs that allegedly confused buyers and earned millions of dollars in sales.
Yuga said the defendants’ project copied its stylized cartoon ape images, which are widely recognized as part of the BAYC collection. Ripps and Cahen argued that their NFTs were meant as satire, which means art that makes fun of or comments on something. They said they wanted to highlight alleged racist or anti-Semitic ideas in Yuga’s NFTs.
Previous court ruling
U.S. District Judge John Walter initially ruled in favor of Yuga in 2023, awarding the company $1.5 million in damages. The amount later increased to more than $8.8 million after attorney fees and other costs were added.Â
However, last year, the 9th U.S. Circuit Court of Appeals overturned that decision, saying that a trial was needed to see if the NFTs really broke Yuga’s trademarks. The settlement now ends the case without going to trial.
Following the agreement, the parties plan to file proposed injunctions to enforce permanent restrictions on Ripps and Cahen’s use of Yuga’s imagery.
Broader context
NFTs are digital assets stored on a blockchain that prove ownership of digital objects, such as artwork. Each NFT is unique, which is why it is used for digital art or collectibles. Yuga’s Bored Ape collection is among the most recognized NFT brands and became popular during the peak of the NFT market.
This case shows how digital art and law can clash. Yuga said Ripps and Cahen copied its art, breaking the rules of trademark law. Ripps and Cahen said their work was satire meant to make a point. But with this settlement, both sides avoided a trial that would have examined the issues in court.
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