The NFT trademark lawsuit between luxury brand Hermès International SA and artist Mason Rothschild over the MetaBirkin NFT project has been settled. This sets an important precedent for legal cases in the Web3 world. The ruling, which came after six days of proceedings in a Manhattan court, found that Rothschild’s sale of bag-inspired NFTs violated Hermès’ rights to the “Birkin” trademark. Therefore, the jury awarded Hermès $133,000 in damages. Furthermore, the lawsuit determined that Rothschild NFTs are not protected by the First Amendment.
Hermès vs MetaBirkin NFT trademark lawsuit sets precedent at Web3 World
This case highlights the need for regulation in the crypto and NFT space. It also serves as a warning to NFT creators that intellectual property law can be enforced on the blockchain. Hermès sued Rothschild in January 2022 for trademark infringement over the launch of the MetaBirkins. To clarify, MetaBirkins is a collection of 100 NFT wallets. These purses have a strong resemblance to Hermès Birkin bags. Therefore, following the release of the MetaBirkins, Hermès International sued Rothschild for trademark infringement.
The jury sided with Hermès, finding that Rothschild had infringed on the trademark and that NFTs should be subject to trademark laws.
What happens next?
The outcome of this case has implications for NFT creators in the Web3 world. For a long time, the creators of NFTs have operated under the assumption that the decentralized nature of the blockchain and First Amendment protections would keep them out of legal trouble. However, this judgment suggests that creators should consider Intellectual Property Law by founding NFT collections. This is especially important for those creations that are derivatives of or similar to notable brands.
In conclusion, the NFT trademark lawsuit has set an important precedent for legal cases in the Web3 world. Firstly, it highlights the need for regulation in the crypto and NFT space. Furthermore, this serves as a warning to NFT creators that intellectual property law can be enforced on the blockchain. As more brands enter the NFT market, it is important for creators to consider the potential for trademark infringement before launching derivative or knockoff NFT collections.
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