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Yuga Labs’ $9 Million Win Reversed as Court Sends NFT Battle Back to Trial

Key Takeaways

  • ​A US appeals court overturned Yuga Labs’ $9 million win, which sent the NFT dispute to trial;
  • Judges ruled NFTs can be "goods" under trademark law, a key point for future NFT cases;
  • Yuga Labs keeps trademark priority, but must prove confusion and cybersquatting claims

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Yuga Labs’ $9 Million Win Reversed as Court Sends NFT Battle Back to Trial

Yuga Labs’ $9 million legal victory against artist Ryder Ripps and his business partner Jeremy Cahen has been reversed by the US Ninth Circuit Court of Appeals.

On July 23, the court decided that Yuga Labs had not yet proven that the non-fungible token (NFT) project launched by Ripps and Cahen was likely to mislead buyers. As a result, the case will return to a California district court for a full trial.

Yuga Labs co-founder Greg Solano posted on X that they "will now finish the fight in the district court".

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Despite losing the financial award, the court confirmed that NFTs can be considered "goods" under US trademark law. That could make it easier for NFT creators to sue over copycat projects in the future.

The judges also agreed that Yuga Labs was the first to use the Bored Ape Yacht Club name in a commercial context. Solano stated that it showed Bored Ape Yacht Club NFTs are valid trademarks and called it "an important win for every NFT holder".

The legal fight began in 2022 when Yuga Labs sued Ripps and Cahen over their NFT collection called "Ryder Ripps Bored Ape Yacht Club". Yuga argued that the collection copied their original Bored Ape Yacht Club NFTs.

The next phase of the legal process will involve a closer look at Yuga Labs’ claims of trademark misuse and cybersquatting.

Meanwhile, a legal case targeting Dolce & Gabbana’s US division over a failed non-fungible token (NFT) venture has been dismissed. Why? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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