Yuga Labs revealed it has won in the trademark infringement case involving its Bored Apes Yacht Club (BAYC) NFTs. The blockchain technology company that makes NFTs and digital collectibles is home to popular non-fungible tokens, including, BAYC, CryptoPunks, OtherSide, MAYC, Mee Bits, and BAKC.

Yuga Labs shared that two artists - Ryder Ripps, a conceptual artist, and Jeremy Cahen - have been ordered by a U.S. District Judge to pay them $1.5 Million for infringing the company’s BAYC brand. Aside from the damages, the mentioned individuals were also asked to stop their activities, such as NFT sales. Ripps and Cahen were also asked to give up their blockchain-based assets.

What Led to the Court’s Decision

According to Reuters, U.S. District Judge John Walter of California explained he ordered Ripps and Cahen to pay Yuga Labs. They must give all of their earnings obtained from the sale of BAYC copies.

The federal judge further said that the two, who are business partners, copied Yuga Labs’ Bored Apes NFT digital art and sold them in the market. The partners tried to defend their action and avoid the hefty penalty by saying that their art project was meant to criticize racist "dog whistles" in the blockchain firm’s digital works.

Judge Walter reaffirmed on Thursday, Oct. 26, that Yuga Labs is entitled to the entire $1.3 million that Ripps and Cahen earned from the NFT copies because “they were fully aware of the confusion they would cause.” Moreover, he said the two also refused to stop selling the items even after being sued by Yuga Labs.

Defendants’ Response to the Ruling

Crypto Slate reported that Ripps and Cahen will have to pay over $1.5 million to Yuga, and they are also required to transfer a smart contract controlling unminted NFTs valued at $106,055 to the original home of the BAYC.

The lawyer of the duo, Louis Tompros of Wilmer Cutler Pickering Hale and Dorr law firm, said they do not agree with some areas of the decision. He said they will file an appeal.

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