Yuga Labs has settled its multi-year lawsuit with two artists over trademark infringement involving NFTs.
Summary
- Yuga Labs has settled its lawsuit with artists Ryder Ripps and Jeremy Cahen, bringing the dispute over lookalike BAYC NFTs to a close.
- Ripps and Cahen are permanently barred from using Yuga Labs imagery and must transfer control of related NFTs, domains, and smart contracts within 10 days.
Documents filed with the U.S. District Court for the Central District of California on April 8 confirm that defendants and artists Ryder Ripps and Jeremy Cahen have reached a final settlement agreement with Yuga Labs.
As a part of the settlement agreement, both artists have been permanently enjoined from further using Yuga Labs’ imagery and trademarks. They will also be required to transfer all smart contracts, domains, and any remaining NFTs associated with the RR/BAYC project to Yuga Labs within the next 10 days.
Ripps and Cahen have also been ordered not to transfer, hide, or otherwise dispose of the accounts, “or other assets referenced in this Injunction,” specifically “for the purpose of avoiding or frustrating compliance.”
As previously reported by crypto.news, the lawsuit was first filed with the court in June 2022 by Yuga Labs, where the Bored Ape Yacht Club creator accused Ripps and Cahen of using the Bored Ape Yacht Club cartoon ape images and profiting from the sale of “copycat” versions.
The defendants initially argued that their NFTs, which were first minted in early 2022, were meant to be satire and a parody of the real Bored Ape Yacht Club collection. Their defense was based on the First Amendment and free speech laws.
However, that argument did not hold up in court, and in April 2023, a judge ruled in favor of Yuga Labs and found that Ripps and Cahen had violated copyright laws by creating confusingly similar versions of the BAYC collection. The court ordered the duo to pay $1.37 million out of their profits, alongside an additional sum for legal fees.
In 2024, the judgment was increased to $9 million after Yuga Labs won a counterclaim; subsequently, an appeals court later tossed the judgment on certain counts, suggesting a trial was required to resolve remaining issues regarding damages and intent before this final settlement was reached.