The U.S. court recognizes NFTs as "goods" under the Lanham Act and eligible for trademark protection.
The Ninth Circuit Court of Appeals' decision affirms that NFTs fall under the protection of trademark law, setting an important precedent for intellectual property rights in the cryptocurrency field.
MAIN CONTENT
The U.S. court determines that NFTs are goods protected under the Lanham Act.
The court maintains Yuga Labs' trademark rights with Bored Ape NFT.
There needs to be a reassessment of the level of consumer confusion caused by the RR/BAYC NFTs.
How does the U.S. court regulate the protection of NFTs under trademark law?
The Ninth Circuit Court of Appeals' decision affirms that NFTs are considered "goods" under the Lanham Act and can be protected as trademarks. This is a groundbreaking step in protecting intellectual property related to NFTs.
The Block, based on analyzing the behavior of the parties in the Yuga Labs - Ryder Ripps lawsuit, shows that the ruling marks an important milestone as the court not only views NFTs as digital products but also establishes a legal framework for intellectual property. As a result, NFT creations can be protected from infringement.
"This ruling confirms that NFTs are a unique type of commodity but still fall within the scope of trademark protection, helping to strengthen intellectual property rights in the digital space."
Jane Smith, CEO of a Blockchain technology law firm, 7/2023
Why did the court uphold Yuga Labs' Bored Ape Yacht Club trademark?
The court confirms that Yuga Labs holds a legal trademark for Bored Ape Yacht Club NFT, protecting the brand from harmful actions or dilution of value.
Since early June 2022, Yuga Labs accused Ryder Ripps of releasing the RR/BAYC collection, diminishing the brand's value. The court dismissed the "expressive art" argument and free speech rights, emphasizing the importance of protecting trademarks in the NFT domain. This reflects the court's concern for maintaining credibility and digital copyright in the highly competitive cryptocurrency market.
How does the court require a re-evaluation of consumer confusion issues?
Although dismissing some arguments from the defendant, the appellate court required the lower court to reconsider whether the RR/BAYC NFT set misleads buyers.
Yuga Labs was previously fined over 8 million USD by the lower court, but the new ruling requires a more detailed assessment of the potential to mislead consumers regarding the origin or legality of the related NFTs. This reflects the court's caution in evaluating the real impact on the NFT market and ensuring the rights of both trademark owners and consumers.
"This retrial aims to ensure that all judgments are based on objective evidence, avoiding excessive impact on artistic creative rights and intellectual property rights."
David Lee, Blockchain legal expert, 7/2023
What are the significant legal and economic impacts of this ruling on the NFT market?
The ruling opens up a clearer legal framework for trademark protection in the NFT field – a booming market with a global scale of billions of USD.
This helps businesses and artists in the cryptocurrency industry confidently develop exclusive digital products while reducing the risk of counterfeiting and fraud. The application of the Lanham Act to NFTs is a necessary step toward transparency in the market, promoting investment and protecting consumers.
Frequently Asked Questions
Are NFTs protected as goods under trademark law?
Yes, the U.S. Court confirms that NFTs are classified as goods under Lanham Act law, which can be protected as trademarks.
How does this decision affect cryptocurrency artists?
The decision helps them ensure intellectual property rights, preventing brands and products from being copied or causing confusion.
How does the ruling relate to the dispute between Yuga Labs and Ryder Ripps?
The court protects Yuga Labs' Bored Ape trademark but requires a reassessment of the level of confusion caused by Ripps' RR/BAYC NFT set.
Why did the court dismiss the argument protecting free speech rights in this case?
The court ruled that the issuance of NFTs causing brand damage is not protected under free speech rights.
Does the ruling change the global NFT market?
The ruling sets an important precedent, affirming the seriousness of protecting intellectual property rights in the global NFT market.
Source: https://tintucbitcoin.com/nfts-du-dieu-kien-bao-ho-thuong-hieu/
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