Appeals Court Overturns $9M Yuga Labs Victory Against Ryder Ripps in BAYC Case

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.