Appeals Court Overturns $9M Yuga Labs Victory Against Ryder Ripps in BAYC Case
Main Idea
The Ninth Circuit Court of Appeals overturned Yuga Labs' $9M victory against Ryder Ripps, ordering a jury trial on trademark confusion claims, while affirming that NFTs can be trademarked under federal law.
Key Points
1. The appeals court ruled that critical questions about trademark confusion in the Yuga Labs vs. Ryder Ripps case should be decided by a jury, not summary judgment.
2. The court affirmed that NFTs qualify as 'goods' under the Lanham Act, establishing a precedent for digital asset trademark protection.
3. Ryder Ripps' 'RR/BAYC' collection used identical images to Yuga's BAYC NFTs but was differentiated by the 'RR/' prefix and sold at lower prices.
4. The court noted that NFT purchasers are 'inherently sophisticated' consumers, which factored into the decision.
5. Yuga Labs retained trademark priority as the first commercial user of BAYC, but the case highlighted challenges in enforcing trademark rights in the NFT space.
Description
The United States Court of Appeals for the Ninth Circuit has largely overturned a district court’s $9 million judgment in favor of Bored Ape Yacht Club creator Yuga Labs, dealing a significant blow to the NFT company’s landmark trademark victory against artist Ryder Ripps and associate Jeremy Cahen. The appeals court ruled on July 23, 2025, that critical questions about consumer confusion in trademark infringement and cybersquatting claims must be decided by a jury rather than through summary ju...
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