US Appeals Court Overturns $9M Judgment in Yuga Labs NFT Trademark Case

A federal appeals court has reversed a $9 million judgment favoring Yuga Labs in its trademark infringement case against Ryder Ripps and Jeremy Cahen. The Ninth Circuit panel found insufficient evidence that Ripps' 'RR/BAYC' NFT collection caused consumer confusion with Yuga's flagship Bored APE Yacht Club series.

The court remanded the case for trial, acknowledging Yuga's trademark priority but emphasizing unresolved questions about marketplace confusion. This decision underscores the evolving legal landscape for digital collectibles, where derivative works test the boundaries of intellectual property law.

NFT market participants are watching closely as the case returns to California federal court. The outcome could establish precedent for how trademark protections apply to blockchain-based assets, particularly in cases involving parody or commentary.