Yuga Labs Prevails Over Ryder Ripps and Jeremy Cahen, Resulting in a $9 Million Payout
In a recent legal battle, a judge ruled in favor of Yuga Labs over artists Ryder Ripps and Jeremy Cahen. The judge decided to dismiss the claims made by both artists and ordered them to pay nearly $9 million in compensation to the digital collectibles company.
The dispute arose after Ripps and Cahen created unauthorized versions of tokens from the Bored Ape Yacht Club (BAYC), a project by Yuga Labs. This unauthorized collection, known as Ryder Ripps BAYC (RR/BAYC), was introduced to the market in May 2022.
The outcome of this legal battle meant that Ripps and Cahen were required to pay Yuga Labs a total of $1.57 million in compensation and legal fees. The court thus closed this case.
However, a recent court decision rejected new claims filed by Ripps and Cahen against Yuga Labs. This time, they were ordered to pay nearly $9 million, which includes fees for lawyers, expert witnesses, and degorgement (the return of wrongfully obtained profits).
They were also instructed to relinquish all RR/BAYC NFTs they own. The court mandated, "If the defendants own any RR/BAYC NFTs, they must destroy (e.g., 'burn') the NFTs or provide them to Yuga for burning."
Jeremy Cahen, also known as Pauly, announced to his 174,100 followers on X that they intend to appeal this decision to the Ninth Circuit Court in California.
Ripps and Cahen also filed counterclaims against Yuga Labs, alleging that Yuga Labs intentionally caused emotional distress and negligently caused emotional distress, while also seeking a declaration of no defamation.
However, the judge dismissed Yuga Labs' first and third counterclaims against Ripps and Cahen, which pertained to false origin designation and kybersquatting, while simultaneously imposing a substantial fine. Additionally, Ripps and Cahen were required to surrender all social media accounts associated with RR/BAYC NFTs and the smart contract. The court filing stated, "The defendants shall destroy any and all other materials infringing copyrights, including NFTs, articles, documents, software, promotional items, or advertisements owned or controlled using any BAYC trademark."
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