What happened?
The United States Court of Appeals for the Ninth Circuit overturned most of a previous $9 million judgment favoring Yuga Labs in its trademark case against artist Ryder Ripps and Jeremy Cahen. The court decided that key questions about trademark infringement and consumer confusion need to be resolved by a jury instead of through summary judgment. This ruling means that the case will return to the district court for further proceedings, which may lead to additional legal costs for both parties.
Who does this affect?
This decision primarily affects Yuga Labs and the creators of Bored Ape Yacht Club NFTs, as well as Ryder Ripps and Jeremy Cahen who were initially found liable for trademark infringement. The case also affects NFT holders and creators within the digital asset market, as it addresses whether NFTs can be trademarked under federal law. Additionally, the ruling has broader implications for artists and companies involved in creating and selling NFTs, as it outlines legal precedents related to trademark protection in the digital realm.
Why does this matter?
This matter impacts the NFT market significantly due to its implications on trademark protections for digital assets. The court’s affirmation that NFTs can be trademarked could influence future business practices and legal standards in the NFT and digital collectibles industry. Moreover, this legal battle comes at a time when the NFT market is experiencing a substantial decline, with trading volumes dropping by 80% and many platforms ceasing operations, highlighting the financial and legal challenges facing those involved in the market.