Ryder Ripps and Jeremy Cahen, artists involved in a legal dispute with Bored Ape Yacht Club (BAYC) founder Yuga Labs, faced a setback as their counterclaims were dismissed, and adverse orders were issued against them. The lawsuit, centered on allegations of copyright infringement related to unauthorized versions of BAYC non-fungible tokens (NFTs), resulted in the artists being directed to pay $9 million in ill-gotten gains and other statutory damages.
Initially, in April 2023, Yuga Labs emerged victorious in the legal battle against Ripps and Cahen over their creation of the Ryder Ripps BAYC (RR/BAYC) collection, which utilized the BAYC brand's slogan. The court ordered the artists to compensate Yuga Labs with $1.57 million in damages along with legal fees, signaling a resolution to the dispute. However, a recent court filing on February 2 revealed that the artists' counterclaim was dismissed, leading to a more substantial financial penalty.
This time, Ripps and Cahen were directed to pay close to $9 million, inclusive of attorney fees, expert witness fees, and disgorgement. Additionally, they were instructed to dispose of any RR/BAYC NFTs in their possession, either by destroying them or surrendering them to Yuga Labs for burning, as outlined in the court order.
The legal proceedings saw Ripps and Cahen filing a counterclaim against Yuga Labs, alleging intentional infliction of emotional distress, negligent infliction of emotional distress, and a declaration of nondefamation. However, the judge invalidated Yuga's initial and third causes of action, which accused Ripps and Cahen of false origin and cybersquatting, respectively, while imposing a multimillion-dollar fine.
Furthermore, the court mandated the turnover of all social media accounts and smart contracts associated with the RR/BAYC NFTs. The filing emphasized the requirement for the destruction of any infringing materials under the defendants' possession or control, including NFTs, articles, documents, software, promotional items, or advertising, bearing any BAYC Marks.
