Legal Blow for Artists in BAYC Copyright Battle
In a significant legal development, artists Ryder Ripps and Jeremy Cahen have been ordered to pay a staggering $9 million in penalties following a court ruling in favor of Yuga Labs, the creators of the famous Bored Ape Yacht Club (BAYC) NFTs. The decision, dated February 2, dismissed the artists’ counterclaims and imposed substantial damages, including legal costs and expert witness fees, as well as disgorgement of profits.
The Inception of the Controversy
The dispute traces back to May 2022 when Ripps and Cahen launched an unsanctioned collection named Ryder Ripps BAYC (RR/BAYC). This collection leveraged the popularity of the original BAYC NFTs, leading to a copyright infringement lawsuit by Yuga Labs. An initial ruling in April awarded Yuga Labs $1.57 million in damages for the infringement. However, the latest court order has significantly increased the financial repercussions for the artists involved.
Directive for Destruction and Transfer
The court has mandated Ripps and Cahen to either destroy any RR/BAYC NFTs in their possession or surrender them to Yuga Labs for destruction. This order extends to all related infringing materials, such as promotional content, software, articles, and advertisements that use the BAYC trademark. Additionally, the artists must transfer all related social media accounts and the smart contract linked to the RR/BAYC NFTs to Yuga Labs, marking a halt to their involvement with the unauthorized collection.
Artists’ Reaction and Intent to Appeal
Following the court’s ruling, artist Jeremy Cahen, also known online as Pauly0x, has made their intention to appeal the decision at the Ninth Circuit Court of California clear. Despite the setback, the artists’ counterclaims, which included allegations of emotional distress and a request for a declaratory judgment stating there was no defamation, were all dismissed in the recent court filing.
A Cautionary Tale in the NFT Realm
This legal case between Yuga Labs and the artists has underscored the significant challenges and potential consequences in the NFT domain, particularly concerning copyright infringement. The outcome of this case acts as a stark warning to artists and developers in the digital art space, emphasizing the critical need to respect intellectual property rights.
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