- U.S. court orders Ryder Ripps and Jeremy Cahen to pay Yuga Labs $1.57 million in BAYC NFT lawsuit.
- Yuga Labs awarded $1.37 million for disgorgement and $200,000 in statutory damages.
- Judge rejects “satire” defense, ruling that the defendants infringed BAYC trademarks intentionally.
U.S. District Court of Califonia has issued an order that compels nonfungible token (NFT) artists Ryder Ripps and Jeremy Cahen to pay Bored Ape Yacht Club (BAYC) creator Yuga Labs a substantial sum of $1.57 million.
According to the October 25 court ruling, the payment is in disgorgement and damages. Notably, this ruling ends the protracted legal battle characterized by allegations of “copycat” NFT creation.
The order follows a partial judgment granted in favor of Yuga Labs early this year. Yuga Labs had alleged that the defendants, Ripps and Cahen, violated copyright laws by creating copycat versions of its BAYC collectibles. The U.S. court awarded Yuga Labs $1.37 million, justifying that the NFT firm was rightfully entitled to the disgorgement of the defendants’ profits. Moreover, an extra $200,000 was granted in statutory damages for cybersquatting violations.
Trademark and copyright attorney Neer McD commented on the development In a recent post on the X platform.
Notably, the presiding judge, John Walter, ruled that Yuga Labs would recover legal fees from the NFT artists, deeming the trademark infringement an exceptional case. He explained that a trademark case is generally regarded as “exceptional” to award attorney fees when a party’s actions can be categorized as “malicious, fraudulent, deliberate, or willful.”
Furthermore, the judge rejected the defendants’ claim that their copycat BAYC versions were forms of “satire” and “parody.” Walter ruled that the defendants deliberately infringed upon Yuga’s BAYC trademarks with the clear intention of profiting from them. Also, he pointed out that the defendants continued to promote their counterfeit BAYC versions even after a partial summary judgment was issued against them in April.
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