Appeals Court Overturns $9M Yuga Labs Victory in BAYC Trademark Case

The Ninth Circuit Court of Appeals has overturned a $9 million judgment favoring Yuga Labs in its trademark dispute against artist Ryder Ripps, marking a pivotal moment for NFT legal precedent. The court ruled that questions of consumer confusion must be decided by a jury, though it affirmed NFTs as trademark-protected goods under federal law.

Yuga Labs co-founder Greg Solano celebrated the trademark recognition as a win for NFT holders, vowing to continue the fight in district court. The case stems from Ripps' 2022 satirical collection replicating Bored APE imagery, which he claimed exposed controversial subtext in the original works.

The decision reshapes the landscape for digital asset intellectual property while leaving open critical questions about parody and consumer protection in Web3 commerce.