Ninth Circuit Partially Overturns $9 Million Trademark Judgment in Bored Ape Yacht Club NFT Case
Federal Appeals Court Reverses Decision in Yuga Labs' $9 Million Trademark Dispute Legal Case
In a significant development, the U.S. Ninth Circuit Court of Appeals has partially overturned Yuga Labs' $9 million trademark infringement judgment against Ryder Ripps and Jeremy Cahen related to the Bored Ape Yacht Club (BAYC) NFTs. The appeals court ruled that Yuga Labs had not sufficiently proven the key claim that Ripps and Cahen’s "RR/BAYC" NFT collection was likely to cause consumer confusion or constituted cybersquatting.
The case, which began in 2022, revolves around the launch of Ripps and Cahen's "Ryder Ripps Bored Ape Yacht Club" (RR/BAYC), which used identical BAYC images and similar marketing tactics. Ripps and Cahen claimed their collection was satirical art criticizing alleged problematic themes in the original BAYC NFTs, which included accusations of racist imagery and neo-Nazi, alt-right references.
Yuga Labs, the creator of BAYC, sued for trademark infringement and deceit, arguing that Ripps and Cahen deceived buyers by presenting knockoff NFTs as genuine BAYC products. In 2023, the California District Court ruled in Yuga Labs' favor, awarding nearly $9 million and recognizing Yuga Labs' BAYC trademarks.
However, the Ninth Circuit found the summary judgment premature, stating that consumer confusion had not been adequately established and that factual disputes remained. The court emphasized the need for a trial to resolve these issues properly.
Ryder Ripps hailed the ruling as a victory for expressive artistic work, while Yuga Labs maintains confidence in the strength and recognition of its brand, viewing the appeals court decision as an opportunity to "finish the fight" at trial.
The case will proceed with a trial in the federal district court in California to evaluate Yuga Labs' claims of trademark infringement and cybersquatting further. This decision marks a significant moment in the evolving legal landscape around NFTs, trademarks, and artistic expression in the Web3 space.
Key Details:
- Background: In 2022, Ripps and Cahen launched "Ryder Ripps Bored Ape Yacht Club" (RR/BAYC), which used identical BAYC images and similar marketing, but they claimed it was satirical art criticizing alleged problematic themes in the original BAYC NFTs.
- Initial Lawsuit and Ruling: Yuga Labs sued for trademark infringement and deceit, arguing Ripps and Cahen deceived buyers by presenting knockoff NFTs as genuine BAYC products. The California District Court ruled in Yuga Labs' favor in 2023, awarding nearly $9 million and recognizing Yuga Labs' BAYC trademarks.
- Appeals Court Decision: The Ninth Circuit found the summary judgment premature, stating that consumer confusion had not been adequately established and that factual disputes remained. It emphasized the need for a trial to resolve these issues properly.
- Free Speech and Trademark Issues: Ripps and Cahen argued their NFTs are political satire protected under the First Amendment and contested the notion that NFTs qualify as "goods" eligible for trademark protection. They also argued that Yuga Labs does not own exclusive trademark rights since rights were granted to individual NFT owners.
- Current Status: The case will proceed with a trial in the federal district court in California to evaluate Yuga Labs' claims of trademark infringement and cybersquatting further.
Summary Table
| Aspect | Details | |-----------------------------|--------------------------------------------------------------| | Plaintiffs | Yuga Labs (Creator of BAYC) | | Defendants | Ryder Ripps and Jeremy Cahen | | Allegations | Trademark infringement, cybersquatting, consumer deception | | Defendants' defense | Satirical political art; First Amendment free speech; NFTs not trademark goods; ownership rights belong to NFT holders | | District Court ruling | In favor of Yuga Labs (2023), awarding $9M | | Appeals Court ruling | Overturned summary judgment; sent case back for trial (July 2025) | | Core legal issue | Whether Ripps/Cahen’s RR/BAYC NFTs cause consumer confusion | | Next step | Trial in California federal court |
In light of the Ninth Circuit's ruling, a trial will be held in the federal district court in California to determine whether Ryder Ripps and Jeremy Cahen's "RR/BAYC" NFT collection, aimed at critiquing issue-laden themes in the Bored Ape Yacht Club NFTs, constitutes infringement on Yuga Labs' trademarks. Additionally, the trial will also address the question of whether technology-based, digital art like NFTs can fall under trademark protection laws and be considered goods for trademark infringement claims.
