Ninth Circuit Overturns BAYC NFT Trademark Judgment

The Ninth Circuit Court of Appeals overturned an $8.8–$9 million judgment awarded to Bored Ape Yacht Club (BAYC) creator Yuga Labs in its trademark lawsuit against artists Ryder Ripps and Jeremy Cahen, who sold similar NFTs as alleged satire. The court ruled that whether Ripps and Cahen’s NFTs caused consumer confusion must be determined at trial, not by summary judgment, and sent the case back to federal court. It affirmed that NFTs are eligible for trademark protection but found Yuga Labs had not conclusively shown likely consumer confusion. The appeals court also rejected Ripps’ First Amendment immunity arguments. This decision arrives amid a broader decline in the NFT market and is expected to set important precedents for digital art and intellectual property law. The case highlights the necessity for trial-level examination of artistic intent and consumer perception in NFT trademark disputes.