Bored Ape NFT trademark lawsuit judge threatens attorney sanctions
Attorneys for an artist alleged to have sold counterfeit Bored Ape Yatch Club non-fungible tokens could face a $1,500 penalty for “repeat violations” by a Los Angeles federal court, U.S. District Judge John F. Walter said Thursday.
While citing these violations, Walter also added concept artist Ryder Ripp’s anti-strategic public participation lawsuit and motion to dismiss Yuga Labs Inc.’s trademark infringement lawsuit.
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The judge’s ruling said the defendants will have until September 6 to explain in writing why “the lead lawyer should not be punished”. Louis W. Tompros of Wilmer Cutler Pickering Hale & Dorr LLP, who represents Ripps, said in a statement to Bloomberg Law that he will respond to the order by the court’s deadline.
Ripps’ motion, filed Aug. 31, violated Section 3(b) of the court’s standing order, which governs the time and format for filing motions, according to Walter, in the US District Court for the Central District of California.
Ripps previously filed the motions on Aug. 15, but the judge struck them four days later, citing violations of Section 5(b) of the standing order, which requires a joint statement to be filed after both parties meet for a pre-filing conference . .
The anti-SLAPP motions argued that Yuga Labs, which created the highly successful Bored Ape NFTs, brought the suit to “tam an artist who used his craft” to criticize the NFT makers. Ripps claimed that his version of the NFTs has revealed “neo-Nazi culture” and “coded dog whistles” embedded in Bored Apes.
The proposals also said that Ripps was shielded from breach liability by Rogers v. Grimaldi trademark test, which may allow artists to use external trademarks in their work without permission.
The Bored Ape NFTs, which feature digital profile pictures of monkeys, have generated more than $2.4 billion in total sales, according to blockchain data tracker Crytoslam.
Yuga Labs’ lawsuit, filed in late June, alleged that Ripps and Jeremy Cahen defrauded consumers into buying fake Bored Ape NFTs “by misusing Yuga Labs’ trademarks.” The two allegedly created an “Ape Market” NFT marketplace requiring members to purchase the counterfeit Bored Ape NFTs for access.
Fenwick & West LLP represents Yuga Labs. Wilmer Cutler Pickering Hale & Dorr LLP represents Ripps and Cahen.
The case is Yuga Labs Inc. v. Ripps, CD Cal., No. 2:22-cv-04355, 9/1/22.
