Yuga Labs wins big in NFT lawsuit against Ryder Ripps and the RR/BAYC project

Bored Ape Yacht Club (BAYC) creators Yuga Labs have won a significant victory in their lawsuit against NFT artist Ryder Ripps and the RR/BAYC project. The lawsuit alleges that Ripps and his collaborators stole Yuga’s intellectual property without permission and used it to create their own NFT project, RR/BAYC. The case has been ongoing for several months, and Yuga Labs is seeking compensation for trademark infringement and other lawsuits.

Yuga Labs NFT vs RR/BAYC: Key Takeaways

In the recent ruling, Judge Walter grants Yuga’s motion for summary judgment on several causes of action in the case against Ryder Ripps and the RR/BAYC project. Although damages will be determined at trial, the ruling is a significant victory for Yuga Labs. The 22-page ruling dictates the actions of BAYC and how RR/BAYC infringes Yuga’s copyright. The following are some key takeaways from the judge’s ruling:

– 1) False designation of origin:

Judge Walter found that Yuga Labs owns the BAYC marks, even though they did not register them. Moreover, they suggest that the marks are valid and protectable. Yuga Labs uses the Marks in commerce and has not transferred or abandoned any trademark rights. The judge concluded that the majority of the Sleekcraft factors weigh in favor of Yuga Labs and that Yuga Labs is entitled to monetary damages and injunctive relief. However, the judge rejected the part of Yuga’s motion that seeks to determine whether this is an exceptional case. If so, it entitles them to increased damages or attorneys’ fees.

– 2) Cybersquatting:

The court found that the domains registered and used by Ryder Ripps and his associates (rrbayc.com and apemarket.com) are likely to cause confusion. Furthermore, the defendants operate in bad faith in order to make money. Yuga Labs claims it is entitled to $200,000 in statutory damages. But the court denied this and stated that compensation would be determined at trial.

– 3) First Amendment/Rogers Defense:

Ryder Ripps and his collaborators argue that the Rogers test applies. This refers to a test that protects some use of trademarks used in artistic works. However, the court found that the Rogers test does not apply in this case. The judge concludes that the collection uses the same images as BAYC and that they “do not express an idea or a point of view”.

The market listings and the Ape Market website do not add any comments. Moreover, these are all commercial activities designed to sell infringing products, not expressive artistic speech protected by the First Amendment.

The judge also adds that even if the Rogers test was applied, the use of the BAYC marks “is not artistically relevant to the defendant’s ‘art’.”

– 4) Fair Use:

Ryder Ripps and his collaborators claim that nominative fair use applies. However, the court found that the defendants’ use of the trademarks is not nominative fair use. This is because it only applies in cases where the person uses the trademarks to sell the original product.

– 5) Unclean hands:

Ryder Ripps and his associates claimed that Yuga Labs has “unclean hands” because they paid celebrities to support BAYC without disclosing that they were compensated. However, the judge found that these claims do not apply to the trademark issue.

– 6) The DMCA Takedown Problem:

Ryder Ripps and his associates claimed that DMCA takedown notices sent by Yuga Labs violated the DMCA. The court found that most of the DMCA notices are unenforceable because no takedown took place.

Of the four that did, the court found that Yuga Labs had a good faith belief that the use of the BAYC Marks was infringing and that Yuga Labs had the right to send the takedown notices.

In conclusion, Yuga Labs has won a significant victory in the lawsuit against Ryder Ripps. This ensures more security and regulation in the room. This significant win for the BAYC community sets the tone and protects it from bad actors.