Bored Ape NFT producer Yuga Labs is suing the artist, claiming he copied tokens

A representation of the cryptocurrency Ethereum is seen next to non-fungible tokens (NFTs) of the Yuga Labs “Bored Ape Yacht Club” collection shown on the website, in this illustration taken March 24, 2022. REUTERS / Florence Lo / Illustration

(Reuters) – The creator of the popular Bored Ape Yacht Club non-fungible tokens has sued an artist in Los Angeles federal court, accusing him of selling copy products that confuse potential buyers.

Yuga Labs Inc said in the Friday lawsuit that Ryder Ripps intentionally causes consumer confusion under the guise of satire and reaps millions in “unfortunate profits” while “celebrating the damage he causes”.

A statement on the Ripps’ NFTs website said that the Bored Ape Yacht Club has “extensive links” to “subversive Nazi troll culture on the Internet”, and that his work “recontextualized” the pieces.

Ripps said in a Monday email that the lawsuit was part of an attempt by Yuga to silence his “research” and that people who reserved his NFT knew they were “a protest against and a parody of BAYC”.

Yuga said in the complaint that Ripps had targeted it in a “campaign of harassment based on false accusations of racism,” and the company’s founders said in an open letter on Friday that appeared on the website Medium that “trolls” “spread ridiculous conspiracy theories on online and use them to sell knockoff NFTs. “

The company said in a Friday Twitter post that it would combat Ripp’s “slanderous allegations” and “continuous violations.”

NFTs are digital tokens that use blockchain technology to verify the authenticity of an asset. Yuga’s Bored Ape Yacht Club are some of the most prominent NFT-based works of art. A set of Bored Apes was sold for $ 24.4 million at Sotheby’s last year, and Yuga was valued at $ 4 billion in March.

The lawsuit alleges that Ripps and other parties co-opted and sold identical copies of Bored Apes and used misleading labeling and tracking information to make them appear legitimate.

Yuga said that the applications for federal trademarks on the “Bored Ape Yacht Club” name are being processed and that they already have common rights in the name.

Yuga also said that Ripps made a copy version of the Bored Ape Yacht Club Twitter account, which caused further confusion.

Ripps’ website said his work “uses satire and appropriation to protest and educate people about The Bored Ape Yacht Club and the NFTs framework.”

“Copying is not satire, it is theft,” the lawsuit states. And lying to consumers is not conceptual art, it is deception. “

The lawsuit alleges trademark infringement, false advertising, unfair competition and cybersquatting (registration of well-known Internet domains, often in the hope of reselling at a profit).

Yuga asked the court for a ruling blocking Ripps from using their trademarks and an unspecified amount of compensation.

The case is Yuga Labs Inc v. Ripps, U.S. District Court of the Central District of California, No. 2: 22-cv-04355.

For Yuga Labs: Eric Ball, Kimberly Culp and Anthony Fares of Fenwick & West

For Ripps: not available

(NOTE: This story has been updated with comments from Ripps.)

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