A U.S. District Judge in California has issued a judgment in favor of Yuga Labs, the creators of the popular Bored Ape Yacht Club (BAYC), against Ryder Ripps and Jeremy Cahen. The court has awarded Yuga Labs over $1.5 million in damages, which is said to be the amount that Ripps and Cahen made in profits from the sale of Ryder Ripps' Bored Ape Yacht Club, a project that the court determined infringed on Yuga Labs' trademark.
Defendants' Argument and Court Ruling
According to court documents shared with Decrypt by a spokesperson for Yuga Labs, the defendants argued that their use of Yuga's BAYC trademarks was not infringement but rather a form of satire and parody. However, the court ruling was against Ryder Ripps and Jeremy Cahen, finding them guilty of infringing Yuga Labs' intellectual property.
As a result of the court ruling, the defendants have been ordered to cease all sales and marketing of their counterfeit NFTs. They are also required to pay $1.575 million in damages, Yuga's attorneys' fees, transfer their fake apes' smart contract, and relinquish any related online assets.
Cybersquatting Violations and Permanent Injunction
In addition to the trademark infringement, the court also addressed the issue of cybersquatting violations. Judge John Walter granted Yuga Labs' request for the defendants to pay $200,000 in damages for the cybersquatting violations, specifically $100,000 per domain. The court also issued a permanent injunction against the defendants.
Bad Faith Intent to Profit
The court filing stated that, after weighing all the factors and considering the undisputed evidence, the court concluded that the defendants acted with a bad faith intent to profit. The defendants were found to have no trademark or other intellectual property rights in the domain names, and the domain names did not consist of their legal names.
First Amendment and Fair Use Arguments Denied
Ryder Ripps and Jeremy Cahen argued that the Bored Ape Yacht Club logos or marks were protected under the First Amendment and fair use. However, the court denied their motion to dismiss and granted Yuga Labs a summary judgment for trademark infringement and cybersquatting claims.
Conclusion
The judgment issued by the U.S. District Judge in favor of Yuga Labs against Ryder Ripps and Jeremy Cahen is a significant victory for Yuga Labs. The court's ruling highlights the importance of protecting intellectual property rights and serves as a reminder that unauthorized use of trademarks can lead to legal consequences. The case also sheds light on the issue of cybersquatting and the actions that can be taken to prevent such violations.
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