BAYC Marks Matter: Court ruling clarifies legal protection for NFT creators and collectors | NFT CULTURE | NFT News | Web3 culture

On April 21, 2023, the Central District of California issued a 22-page ruling in Yuga Labs, Inc. v. Ripps et al. The case centered around copyright and trademark infringement of Ryder Ripps’ RR/BAYC collection. The court granted Yuga Labs a motion for summary judgment on the false designation of origin and cybersquatting claims, according to Jessica Neer McDonald, a trademark and copyright attorney and founder of IP law firm NeerMcD PLLC.

In a case between Yuga Labs and Ryder Ripps and Jeremy Cahen, Yuga Labs won a motion for summary judgment on false designation of origin and web squatting claims. Yuga Labs, the creator of the Bored Ape Yacht Club (BAYC) NFT collection, alleged that the defendants created an infringing collection called Ryder Ripps Bored Ape Yacht Club (RR/BAYC). The court found that the defendants had misused Yuga Labs’ trademarks and ordered legal remedies and financial damages. The judgment creates a precedent for legal protection in connection with digital ownership and trademarks. It is important to note that members of nftculture own Yuga assets

What does this mean for the wider NFT and web3 ecosystem?

This ruling has far-reaching implications for the NFT industry and digital ownership as a whole. False designation of origin and cybersquatting are illegal practices that are no longer tolerated in the digital space. This court decision provides clarity on trademarks and sets a precedent for legal protection in the context of digital ownership.

The BAYC marks are used in commerce, as required under the Trademark Act, and the court rejected the claim that Yuga Labs had transferred or abandoned its trademark rights through bare licensing and failure to report. The defendants’ defense that their RR/BAYC project was “art” commenting on Yuga’ Labs’ allegedly racist messages and images was also rejected by the court.

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Yuga Labs v. Ryder Ripps et al – Yuga Labs’ prevails on summary judgment on false designation of origin + cybersquatting claims.

Yuga is entitled to monetary compensation + injunction w/amount and exceptional case decision (for extended damages + legal fees) tbd. /1

— NeerMcD.eth 🚀 (@NeerMcD) 22 April 2023

Furthermore, the court ruled that NFTs are indeed goods under the Lanham Act, which requires goods to be tangible for liability to apply. This decision was based on the precedent set in Hermes International v. Rothschild, which concluded that the Lanham Act does not require goods to be tangible for liability to apply. This means that NFTs are more than just ownership receipts and have specific uses and values ​​that depend on the consumer.

The importance of this ruling cannot be overstated. Yuga Labs’ Bored Ape Yacht Club is one of the premier collections in the NFT space, and this decision provides legal protection for creators and collectors alike. It sets a precedent for future litigation and clarifies the legal status of NFTs and digital ownership.

Link to the case report

Overall, this ruling underscores the importance of trademark and copyright protection in the digital space. It also highlights the need for clear legal frameworks to govern the rapidly developing NFT industry. As more and more companies and individuals explore the world of NFTs, legal protection will be necessary to ensure the continued growth and success of this emerging industry.