Yuga Labs prevailed in a recent legal dispute between the creators of the Bored Ape Yacht Club (BAYC) and two conceptual artists. When releasing their RR/BAYC NFT collection, Ryder Ripps and Jeremy Cahen violated Yuga Labs’ trademark, a magistrate ruled. The case was closely followed by the NFT community and could serve as a precedent for future disputes over NFT ownership and intellectual property rights.

The Bored Ape Yacht Club is a popular NFT collection of one-of-a-kind digital artworks depicting cartoon apes in various costumes and poses. The collection has attained cult status and has been praised for its creativity and originality. However, it has also been the target of copycats and imitators seeking to profit from its popularity.

In May of last year, Ryder Ripps and Jeremy Cahen released RR/BAYC, a set of non-fantasy trading cards featuring duplicate BAYC artwork that sold for less than the official BAYC NFTs. Shortly thereafter, Yuga Labs, the creator of BAYC, filed a lawsuit alleging that the pair had misappropriated the BAYC trademarks “in an attempt to deceive community members into purchasing their NFTs instead of the official BAYC NFTs.”

Yuga Labs argued that the RR/BAYC NFTs were confusingly similar to the official BAYC NFTs and that the RR/BAYC collection’s use of the BAYC trademarks constituted trademark infringement. In contrast, the defendants argued that the RR/BAYC collection was a parody and did not violate any trademarks.

Landmark ruling sets precedent for NFT ownership and IP rights

A judge ruled in favor of Yuga Labs in court, determining that the RR/BAYC collection did violate Yuga Labs’ trademark rights. The judge noted that even though the defendants attempted to argue that their collection was a parody, it did not meet the criteria for fair use and the use of the BAYC trademarks was likely to cause consumer confusion.

The decision is significant for the NFT community because it establishes a precedent for future legal conflicts over NFT ownership and intellectual property rights. It sends a clear message that NFT creators have the right to secure their intellectual property and that those who try to profit from imitating or copying NFT collections without permission may face legal repercussions.

Individual NFTs from The Bored Ape Yacht Club have sold for millions of dollars, making this collection one of the most lucrative to date. This ruling may help stem the deluge of copycats and imitators spawned by the collection’s success.

The NFT community has closely followed the legal dispute between Yuga Labs and Ryder Ripps and Jeremy Cahen over the RR/BAYC NFT collection. The ruling favoring Yuga Labs establishes a precedent for future legal disputes regarding NFT ownership and intellectual property rights and conveys a clear message that NFT creators have the right to protect their intellectual property.