A Manhattan federal jury has ruled in favor of high-end designer Hermès in a case against artist Mason Rothschild, who created and sold ‘MetaBirkin’ NFTs, which were found to infringe on trademark laws. Rothschild, real name Sonny Estival, was also held liable for brand dilution and cybersquatting and was ordered to pay $133,000 in statutory damages to Hermès.

The French fashion house had sued Rothschild for creating and selling 100 ‘MetaBirkins’ – faux fur-covered Birkin bag-inspired NFTs – which they claimed diluted their brand and confused customers. The case has been closely watched for its implications regarding trademark law and tokens. Rothschild’s lawyers, however, denied the allegations, saying the NFTs were a form of artistic expression and protected by the First Amendment.

Hermès had claimed that Rothschild sold over $1 million worth of the tokens since December 2021.

The case was closely watched for its implications regarding trademark law and NFTs. The verdict has been seen as a victory for big luxury brands but a setback for artists and freedom of expression. Rothschild’s lawyers also criticized the judge’s decision not to allow an art expert to testify in the case. Hermès had claimed that Rothschild had created the NFTs as a ‘get rich quick’ scheme.