In a groundbreaking court decision, NFT artist Ryder Ripps and Jeremy Cahen face a nearly $9 million judgment for profit disgorgement in the Bored Ape Yacht Club (BAYC) lawsuit against Yuga Labs. The court’s final verdict, issued on Friday, not only imposes the financial penalty but permanently bars Ripps and Cahen from using the BAYC identifier in any logos or trademarks. US District Judge John Walter, overseeing the case, has mandated the duo to transfer any infringing intellectual property, encompassing codes, passwords, and credentials, to Yuga Labs within a two-week timeframe. Simultaneously, they are directed to dispose of any remaining Ryder Ripps/BAYC NFTs or surrender them to Yuga Labs for proper disposal.

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• NFT artists Ryder Ripps and Jeremy Cahen ordered to pay $9M in Bored Ape Yacht Club lawsuit
• A permanent ban was imposed on using the BAYC identifier in logos or trademarks
• Legal battle underscores the importance of intellectual property protection in the NFT market

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NFT Artist Ryder Ripps Ordered to Pay $9M in Landmark Bored Ape Yacht Club Lawsuit

The current court judgment also lies upon Ripps and Cahen to cover the costs of almost $7 million incurred for legal help throughout the restrained lawsuit, which leads people to discuss probably more NFT-related lawsuits.

Despite Yuga Labs securing a decisive victory in this precedent-setting NFT case, Cahen, known as “Pauly0x” on X, asserts that they are appealing the decision in the Ninth Circuit Court of California. “Case is ongoing,” he confirmed.

The Ryder Ripps/Yuga Labs case plays a major role in setting an example to protect intellectual property and trademarks as far NFTs are concerned. This choice also stresses the legal protection given to creators and companies even in an age of emerging decentralized technologies.

​ The actions of Yuga Labs to prevent NFTs misuse is applied as an additional convincing factor that helps identify the significance of IP protection especially in the context of a fragile and unreliable market known for potential scams.

The legal saga dates back to May 2022 when Ripps and Cahen launched the Ryder Ripps Bored Ape Yacht Club NFT collection, closely resembling Bored Apes. Yuga Labs filed a lawsuit in June, alleging the creation and promotion of “copycat NFTs” that devalued authentic ones.

Yuga Labs argued that Ripps deliberately used identical trademarks to those of BAYC, aiming to undermine Yuga by creating uncertainty among consumers about the association between RR/BAYC NFTs and the genuine BAYC. In August, Ripps tried to overturn the lawsuit by stating that his NFTs were a kind of appropriation art aimed at artistic criticism.

By October, Judge Walter ordered Ripps and Cahen to pay Yuga Labs over $1.5 million in damages after finding them guilty of trademark infringement.

Therefore, in light of this legal soap opera newsletter subscription is recommended for readers to get a clear view about NFTs while being updated with its constantly changing world.