Yuga Labs’ $9M NFT Copyright Ruling Overturned, Setting Trademark Precedent

A U.S. appeals court has vacated a $9 million judgment against the creators of a Bored APE Yacht Club-inspired NFT collection, ordering a new trial to determine potential trademark infringement. The Ninth Circuit ruled Yuga Labs failed to prove consumer confusion—a pivotal requirement in the case.

The decision establishes NFTs as qualifying 'goods' under U.S. trademark law, creating a landmark precedent for digital asset litigation. Defendants Ryder Ripps and Jeremy Cahen had positioned their 'RR/BAYC' collection as protest art, alleging Yuga's original works contained racist undertones.

Legal analysts note the reversal underscores the challenges of applying traditional IP frameworks to decentralized assets. The case now returns to district court, where a jury will assess whether the parody project crossed into unlawful appropriation.