Yuga Labs, the company behind the popular Bored Ape Yacht Club NFTs, has settled a trademark dispute with artist Ryder Ripps and his partner Jeremy Cahen. The lawsuit, originally filed in July 2022, resulted in two important court decisions about protecting digital collectibles (NFTs) as intellectual property, but the two sides ultimately reached an agreement before going to trial.
A court document shows that Ripps is no longer allowed to use any images or trademarks belonging to Yuga Labs. The details of the financial agreement resolving the case haven’t been made public.
šØ YUGA LABS SETTLES ITS LAWSUIT AGAINST RYDER RIPPS AND JEREMY CAHEN
This deal ends the high-profile case over alleged Bored Ape copycat nfts
This agreement keeps the details private and legally prevents Ripps and Cahen from ever using Yugaās images or brand names.
Huge W for Yuga š„
ā BlockNews (@blocknewsdotcom) April 8, 2026
As an analyst following the NFT space, I see this resolution as a landmark moment. It effectively wraps up a really important legal battle ā one that resulted in a key ruling from the Ninth Circuit Court of Appeals. That ruling established that NFTs *are* considered ‘goods’ under trademark law, meaning they’re protected by federal trademark regulations. This is huge for brand owners in the NFT space and sets a significant precedent.
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RR/BAYC and the Underlying Yuga Labs Legal Claims: How the Dispute Progressed Through Federal Court
Here’s how the situation unfolded: On July 25, 2022, Yuga Labs sued Ripps and Cahen in California federal court (Case No. 2:22-cv-04355). The lawsuit claimed violations of trademark law, specifically false advertising and illegal domain name registration, because Ripps and Cahen created a project called RR/BAYC. This project copied the images from the original BAYC collection, and Ripps and Cahen argued their work was protected as artistic expression under the First Amendment.
Starting in June 2022, Ripps publicly claimed the Bored Ape Yacht Club (BAYC) artwork contained hidden racist and antisemitic imagery. Yuga Labs, the company behind BAYC, called these claims a ācampaign of harassmentā but chose not to take legal action against Ripps for defamation.
Source: thomsonreuters
On March 2, 2023, Judge John F. Walter ruled in favor of Yuga Labs, stating that their BAYC trademarks are valid and well-recognized. He found that the trademarks are unique and strong, and that the defendantsā actions were likely to confuse consumers in the NFT space. The judge dismissed the defendantsā arguments for defenses like fair use, freedom of speech, and other legal claims.
After a trial, the court issued a final judgment on August 4, 2023, awarding Yuga over $8 million. This included about $7 million for legal fees, plus additional funds representing profits Ripps and Cahen made from the infringement, statutory damages, and court costs. The court also ordered Ripps and Cahen to hand over the NFTs they illegally copied and any related intellectual property within 14 days.
The Ninth Circuit Court of Appeals overturned the previous decision regarding whether consumers were confused, sending the case back to trial to determine that. However, the court confirmed that NFTs are considered āgoodsā under the law, which canceled the $9 million fine and means the case will now proceed to a full trial.
The Ninth Circuit Court also dismissed Ripps and Cahenās claims that Yuga Labs didnāt rightfully own the copyright to the Bored Ape Yacht Club artwork. Because the court hadnāt yet decided key issues and a new trial was needed, this situation likely led both sides to reach a settlement.
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2026-04-09 14:57