NFT Artist Hit with $1.57M Fine in BAYC Battle
NFT artist Ryder Ripps and his associate Jeremy Cahen have been slapped with a substantial $1.57 million fine, the result of a legal battle with Yuga Labs, the creators of the Bored Ape Yacht Club NFT collection.
In a recent court decision on October 25, U.S. District Judge John Walter ruled that this financial penalty would effectively curtail the defendants’ ongoing encroachments on Yuga Labs’ trademarked intellectual property.
The contentious matter began in May 2022 when Ripps and Cahen launched their NFT collection, known as Ryder Ripps Bored Ape Yacht Club (RR/BAYC), which bore a striking resemblance to the Bored Ape NFTs. Ripps controversially claimed that his NFTs were a form of commentary on the presence of Nazi symbols within the Bored Ape Yacht Club collection.
As the conflict escalated, Yuga Labs took legal action against Ripps and Cahen in June of that year, alleging that they were producing and distributing counterfeit NFTs, thereby undermining the value of the genuine pieces. Ultimately, by April 2023, the court ruled in favor of Yuga Labs, granting them injunctive relief and monetary compensation.
Yuga Labs argued that Ripps and Cahen’s actions were a calculated attempt to sabotage their NFT project, sowing doubt among consumers about the authenticity of RR/BAYC NFTs in relation to the genuine BAYC.
In response, the defendants contended that their creations constituted a unique form of “appropriation art” aimed at shedding light on Yuga Labs’ alleged involvement in promoting “racist, neo-Nazi, and alt-right messages and symbols.” They pressed Yuga Labs to acknowledge their own conduct.
However, despite their claims in court that the RR/BAYC NFT collection was a satirical or critical commentary on Yuga’s BAYC series, the court found substantial evidence suggesting that they had essentially used the BAYC Marks to create an NFT collection featuring the same images as Yuga’s NFTs.
READ MORE: ECB Pauses Rate Hikes as Europe’s Economy Faces Challenges
Moreover, even after Yuga Labs initiated legal proceedings to assert its trademark rights, Ripps and Cahen persisted in marketing and promoting the RR/BAYC NFT series, as the court order attests.
In the final judgment, the court ordered the defendants to remit $1.37 million from their profits to Yuga Labs, in addition to $200,000 in statutory damages, with an undetermined sum allocated to cover legal fees. Yuga Labs is required to submit all billing records and documents supporting their claim for attorneys’ fees and costs by November 1.
Adding to Yuga Labs’ legal triumph, the presiding judge issued a permanent injunction against Ripps and Cahen, effectively prohibiting them from engaging in any future activities that infringe on Yuga Labs’ intellectual property. Furthermore, they are compelled to transfer control of two domain names and two X accounts.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
