Bored Ape Maker’s $8.8 Million Win in NFT Trademark Case Overturned by US Appeals Court
A US appeals court confirmed that NFTs qualify as “goods” under trademark law — a key development for the NFT industry.
The 9th US Circuit Court of Appeals has overturned an $8.8 million judgment awarded to Yuga Labs, creator of the Bored Ape Yacht Club non-fungible tokens (NFTs), in its dispute with artist Ryder Ripps and business partner Jeremy Cahen over alleged copycat NFTs. The court held that there is a genuine factual dispute about whether Ripps and Cahen’s NFTs — described by them as satirical “appropriation art” — are likely to confuse buyers, requiring a trial in a California federal court on Yuga’s trademark infringement and cybersquatting claims.
Importantly, the appeals court also held that NFTs qualify as “goods” under US trademark law, affirming that they can be protected by trademark rights. A Yuga spokesperson reportedly said the ruling “validates the fight we took on and confirms that BAYC is a strong and recognizable brand.” Ripps countered that the decision “underscores that appropriation is a vital tool for artists to hold powerful entities to account.”