The Ninth Circuit Court of Appeals has issued a split decision in the high-profile legal clash between Yuga Labs, creator of the Bored Ape Yacht Club NFTs, and artist Ryder Ripps, known for his controversial RR/BAYC project. At the heart of the dispute is Ripps’ use of NFT replicas, which he claimed were a form of "expressive appropriation art."
In its latest ruling, the court affirmed that NFTs can be considered "goods" under trademark law, dealing a blow to Ripps by rejecting several of his key legal arguments. However, the court also reversed the earlier $8 million judgment against him, sending the case back to a lower court for further review.
That court will now reconsider whether Ripps’ NFT series genuinely misled consumers or harmed Yuga Labs’ brand through confusion. The legal battle began in mid-2022, when Yuga Labs accused Ripps of intentionally undermining its brand equity. Although the appellate court dismissed claims based on artistic expression and First Amendment rights, it made clear that more factual analysis is needed before a final ruling can be made.
