Yuga Labs Granted $1.6M For Damages In Ryder Ripps NFT Copyright Lawsuit

Blockchain technology firm Yuga Labs develops non-fungible tokens (NFTs) and digital collectibles, with its flagship collection being Bored Ape Yacht Club which was launched in April 2021.

A judgment passed Thursday protected the company from infringement, a widely prevalent issue that NFT creators face.

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What Happened: NFT artist Ryder Ripps and his business associate Jeremy Cahen will pay $1.57 million to Yuga Labs for their satirical NFT collection as ordered by US District Judge John Walter, reported by Blockworks.

Also Read: Yuga Labs Shifts Focus To Metaverse, Axes Jobs

The total includes $1.37 million from the defendants’ profits and an additional $200,000 in statutory damages. It also includes an undetermined amount covering legal fees for which Yuga must submit all billing records and documents supporting its claim for attorneys’ fees and costs by Nov. 1.

The judge also issued a permanent injunction against Ripps and Cahen to stop the defendants from further infringing activities. Ripps and Cahen will also be handing over control of two domain names and two X accounts.

The judge said that if the defendants give up their profits it would stop them from continuing to step on the Yuga Labs’ trademarks.

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Why Did It Happen: In May 2022, Ripps and Cahen launched a set of NFTs, the Ryder Ripps Bored Ape Yacht Club (RR/ BAYC) collection — almost like Bored Apes. However, Ripps claims that it was promoting Nazi symbols.

In June 2022, the NFT company sued Ripps and Cahen for producing and selling imitation NFTs leading to the diminishing value of original pieces. The court granted injunctive relief and monetary damages for Yuga in April 2023.

Yuga blamed the creators, stating it was a planned move by Ripps and Cahen while the defendants claim the creations to be a form of “appropriation art.” It was directed to draw Yuga’s attention as it was spreading racist, neo-Nazi, and alt-right messages and symbols.

Despite legal proceedings by Yuga, Ripps and Cahen did not stop their marketing or promotion of their RR/BAYC NFT series.

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