Court documents filed on April 9 revealed that Yuga Labs, creator of the Bored Ape Yacht Club NFT collection, and artist Ryder Ripps along with business partner Jeremy Cahen are nearing a settlement. The specifics remain undisclosed, but the filing marks significant progress after years of litigation.
The legal battle began in 2022 when Yuga Labs sued Ripps and Cahen for launching “RR/BAYC,” a project that reused icons from the original collection. Yuga Labs alleged trademark infringement; Ripps argued it was artistic expression protected under free speech.
2023 Key Ruling: $9 Million Judgment
In 2023, U.S. District Judge John Walter ruled that the lookalike NFTs could cause marketplace confusion, finding liability for trademark infringement. The court ordered the pair to pay roughly $9 million in profits, punitive damages, and legal fees. However, the Ninth Circuit partially reversed the decision, vacating summary judgment and sending the case back for a jury trial, suspending the penalty.
Settlement Terms: Permanent Ban on BAYC Visuals
During settlement talks, Yuga Labs accused Ripps of destroying private keys tied to the RR/BAYC project and sought additional sanctions. The final agreement formally bars Ripps from using Bored Ape Yacht Club images and branding. A Yuga Labs representative stated in court: “We have maintained throughout this process that our intellectual property rights must be protected for the integrity of the NFT market.”
The case has become a landmark for trademark protections applied to NFTs. Observers say the settlement will influence how NFT projects navigate intellectual property and artistic freedom. While terms remain sealed, the outcome is expected to shape policy, contract design, and platform governance across the digital collectible landscape.
For Yuga Labs, the lawsuit highlights the challenge of enforcing brand protection in a rapidly evolving industry. For artists like Ripps, it fuels debate over how much leeway creators should have to reinterpret existing NFT projects. The ripple effects continue as the dust settles.