Yuga Labs has reached a settlement in its two-year legal battle against artist Ryder Ripps and Jeremy Cahen, bringing an end to a closely watched dispute in the NFT space. The case centered on the RR/BAYC collection, which reproduced imagery associated with Yuga’s flagship Bored Ape Yacht Club brand. Under the terms of the settlement, Ripps and Cahen are barred from using Yuga’s trademarks going forward. No trial will take place as a result of the agreement.
The core of the dispute was whether the RR/BAYC project constituted satire or amounted to trademark infringement. Ripps and Cahen argued their collection was a form of artistic commentary, while Yuga Labs maintained that it misled consumers and unlawfully exploited its intellectual property. The question of intent and consumer confusion became central to the legal proceedings as the case progressed through the courts.
A judge initially ruled in Yuga Labs’ favor, awarding the company nearly $9 million in damages. However, that decision did not stand on appeal. An appeals court overturned the ruling and determined that a jury should decide whether buyers had actually been misled by the RR/BAYC collection, sending the case toward a potential trial.
The settlement resolves the matter before it could reach a jury, sparing both sides the uncertainty and expense of further litigation. By agreeing to terms out of court, Yuga Labs secures a binding restriction on the defendants’ use of its trademarks without the risk of an unfavorable jury verdict. For Ripps and Cahen, the settlement avoids the possibility of a damages award being reinstated or increased.
The Bored Ape Yacht Club remains one of the most recognized brands in the NFT market, and the case drew significant attention from the broader digital art and blockchain communities. The outcome is likely to be noted by creators and platforms navigating the boundaries between artistic appropriation and trademark law in the NFT space. The settlement does not establish a court precedent but does signal the lengths to which NFT brand holders may go to protect their intellectual property.
Originally reported by CoinDesk.
