Artists Ryder Ripps and Jeremy Cahen have faced a setback in their legal battle with Yuga Labs, creators of the Bored Ape Yacht Club (BAYC).
The court recently dismissed a counterclaim in an ongoing copyright lawsuit.
The Feb. 2 decision requires Ripps and Cahen to pay nearly $9 million in damages, including legal and expert witness fees, along with restitution.
The controversy began in May 2022 when Ripps and Cahen released an unauthorized collection called Ryder Ripps BAYC (RR/BAYC). This is a clear exploitation of the notoriety of the original BAYC NFT (Non-fungible Token). The move sparked a legal battle with Yuga Labs, which accused the pair of copyright infringement.
The judge’s ruling in April ruled in favor of Yuga Labs, awarding the company $1.57 million in damages for Ripps and Cahen’s alleged infringements. This ruling was believed to have concluded the legal dispute.
However, a recent court order not only dismissed the two men’s counterclaims, but also significantly increased their financial penalties.
The court order details that RR/BAYC NFTs owned by Ripps and Cahen must also be destroyed or turned over to Yuga Labs for destruction.
This order extends to the removal of all relevant infringing material, including articles, software, promotional items and advertisements containing BAYC trademarks.
Artists must also transfer all social media accounts and smart contracts associated with RR/BAYC NFTs to Yuga Labs, effectively halting their participation in unauthorized collections.
Following the court’s decision, Cahen, known online as Pauly0x — express The two intend to appeal the ruling in California’s 9th Circuit Court. Their counterclaims, which included claims of intentional and negligent infliction of emotional distress and defenses of declaratory judgment not for defamation, were all dismissed in recent court filings.
The case highlighted the legal issues and ramifications associated with the creation and distribution of NFTs, particularly those that infringe on existing copyrights.
The results serve as a warning to artists and developers in the digital art space, emphasizing the importance of respecting intellectual property rights.