Circuit Judge Expresses Doubt About RR/BAYC NFT Project’s Legality
On October 17, a panel of three judges heard a case involving Ryder Ripps and Jeremy Cahen, who were accused of infringing on the trademarks of Bored Ape Yacht Club (BAYC) with their derivative NFT collection, RR/BAYC. Ripps and Cahen’s attorney, Thomas Sprankling, argued that the case should be dismissed under California’s anti-SLAPP statute, which protects individuals from intimidating lawsuits that aim to stifle free speech.
Sprankling contended that RR/BAYC was a form of protest art, criticizing alleged anti-Semitic imagery in the original BAYC collection. However, the judges appeared skeptical of this argument, focusing instead on the secondary sales of the copycat NFTs. Circuit Judge Morgan Christen expressed doubt, saying, “I’m still not seeing it,” and suggested that they were looking for a clearer principle to determine whether this legal action is permissible.
The legal battle began in January 2022, when Ripps started posting on social media, claiming that BAYC NFT artwork contained racist caricatures of Black and Asian individuals and that the project’s logo and branding incorporated references to Nazi symbolism and language. Ryder Ripps introduced RR/BAYC in May, an NFT project that utilized imagery and names from BAYC as a form of protest art, challenging the original project’s use of controversial imagery.
Yuga Labs, the creator of BAYC, initiated legal proceedings against Ripps and Cahen in June 2022, accusing them of making millions of dollars through trademark infringement, false advertising, and cybersquatting, amongst other charges. Yuga Labs’ legal team contended that RR/BAYC was intentionally causing confusion among potential BAYC customers, leading them to believe that RR/BAYC had a legitimate association with Yuga Labs.
Ripps has argued that the RR/BAYC project serves as a form of satire and appropriation, with the intention of protesting and educating people about BAYC and the world of NFTs. In April, a United States District Court for the Central District of California found that Ripps and Cahen had infringed Yuga Lab’s trademarks with their NFT collection. The court ruled that Yuga Labs is entitled to an injunction and damages, which will be determined at a bench trial.
The case continues to underscore the legal intricacies entwined with the burgeoning NFT space. The outcome will likely have significant implications for the future of NFTs, artistic expression, and free speech. As the case unfolds, it remains to be seen how the court will balance the right to free speech with the need to protect intellectual property rights.
