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Artists Ryder Ripps and Jeremy Cahen faced a setback in their legal battle against Yuga Labs, the creators of Bored Ape Yacht Club (BAYC).
A recent court filing dismissed his counterclaims in the ongoing copyright lawsuit.
On February 2 decision demands that Ripps and Cahen pay nearly $9 million in damages, including attorney and expert fees, in addition to disgorgement.
The controversy began in May 2022 when Ripps and Cahen launched an unauthorized collection called Ryder Ripps BAYC (RR/BAYC), clearly capitalizing on the notoriety of the original BAYC non-fungible tokens (NFTs). The move sparked a legal battle with Yuga Labs, which accused the pair of copyright infringement.
A judge's ruling last April favored Yuga Labs, awarding the company $1.57 million in damages from Ripps and Cahen for their infringing activities. The ruling was thought to have concluded the legal dispute.
However, the latest court order not only dismisses the duo's counterclaims but also significantly increases the financial penalties against them.
The court order details that Ripps and Cahen must also destroy any RR/BAYC NFTs in their possession or deliver them to Yuga Labs for destruction.
This directive extends to the removal of all related infringing materials, including articles, software, promotional items and advertisements bearing any BAYC trademark.
Additionally, artists must transfer all social media accounts and smart contract associated with the RR/BAYC NFTs to Yuga Labs, effectively ceasing their participation in the unauthorized collection.
Following the court's decision, Cahen, known online as Pauly0x, voiced The couple's intention is to appeal the ruling to the Ninth Circuit Court of California. His counterclaims, which included allegations of intentional and negligent infliction of emotional distress, as well as a request for declaratory judgment without defamation, were all dismissed in this recent court filing.
This case has highlighted the legal challenges and ramifications involved in the creation and distribution of NFTs, especially those that infringe existing copyrights.
The result serves as a warning to artists and developers in the digital art space, underscoring the importance of respecting intellectual property rights.
