In a pivotal legal showdown in California, the U.S. District Judge ruled decisively in favor of Yuga Labs, the creative powerhouse behind the renowned Bored Ape Yacht Club. The judgment dealt a hefty blow to Ryder Ripps and Jeremy Cahen, who were ordered to pay a substantial $1.5 million for infringing on Yuga Labs’ trademark rights. This financial penalty was imposed in light of the substantial profits amassed by Ripps and Cahen through their imitation venture, the “Ryder Ripps Bored Ape Yacht Club.”
The legal verdict didn’t stop at financial restitution. The judge, in a bold move, imposed additional sanctions, requiring the two infringing parties to cease all sales of NFTs and surrender their online blockchain assets. It’s worth noting that Ripps and Cahen had previously tried to defend their position by claiming their version was a form of “satire” and “parody” of the original Bored Ape Yacht Club, rather than a direct infringement.
Furthermore, the court found merit in Yuga Labs’ arguments and awarded them an additional $200,000 in damages for cybersquatting violations. Cybersquatting involves registering domain names related to famous brands or companies with the intention of selling them later for a profit. In this case, domains like rrbayc.com and apemarket.com were identified as culprits, with the court determining that the defendants had registered these domains solely to divert potential customers from Yuga Labs to their own commercial website.
The court’s decisive stance also saw the rejection of the defendants’ counterclaim, in which they accused Yuga Labs of utilizing offensive imagery in their Bored Ape Yacht Club NFTs. The court’s ruling reaffirmed Yuga Labs’ rights to the unregistered BAYC Marks, establishing their validity and protectability.
Timing was another crucial factor in the courtroom battle, with the judge taking note of the fact that Ripps and Cahen registered their domains after the launch of Yuga Labs’ Bored Ape Yacht Club NFTs. This sequence of events further strengthened the infringement case against the defendants.
The Bored Ape Yacht Club, born in April 2021, is a collection of 10,000 unique NFTs residing on the Ethereum blockchain. These NFT holders not only gain entry into an exclusive community but also secure unlimited copyright privileges for media and design usage. The fervor surrounding these digital collectibles is so intense that even renowned figures like Seth Green, the beloved star of “Family Guy,” didn’t hesitate to spend a hefty $300,000 to regain his Bored Ape NFT following a phishing incident.