Conceptual artist Ryder Ripps has been officially prohibited from using the visual and branding elements of Yuga Labs, following a prolonged legal battle between the parties. This development signals that both sides have finally reached a settlement in a high-profile dispute that has drawn attention across the NFT and digital art communities.
Settlement negotiations near conclusion
Court documents filed on Tuesday revealed that Yuga Labs, creator of the Bored Ape Yacht Club NFT collection, and Ryder Ripps with his business partner Jeremy Cahen, are taking steps toward a resolution. Details of the settlement agreement have yet to be made public, but the filing marks significant progress after years of litigation.
The legal conflict began in 2022 when Yuga Labs sued Ripps and Cahen for launching a project titled “RR/BAYC,” which used icons and characters from the original NFT collection. Yuga Labs accused the pair of trademark infringement. Ripps, in turn, argued that his project constituted artistic expression protected under freedom of speech.
Ripps also asserted that the Bored Ape Yacht Club collection contained discriminatory imagery, a claim that sparked controversy in the digital art world. Despite these accusations, Yuga Labs chose not to file a separate defamation claim, though the company described Ripps’s actions as part of what it considered a sustained harassment campaign.
Key rulings in the lengthy legal process
In 2023, U.S. District Judge John Walter ruled that the lookalike NFTs created by Ripps and Cahen could potentially cause confusion in the marketplace and found them liable for trademark infringement. The court ordered the pair to pay Yuga Labs roughly $9 million—an amount covering profits, punitive damages, and legal fees.
However, the legal saga took a turn when the Ninth Circuit Court of Appeals partially reversed the earlier decision. While the court dismissed most of Ripps’s fair use claims, it vacated the summary judgment in favor of Yuga Labs, sending the case back for a jury trial. The $9 million penalty was effectively suspended, and the case became a landmark example for applying trademark protections to NFTs.
With prospects for settlement on the horizon, tensions remained when Yuga Labs accused Ripps of destroying private keys related to the RR/BAYC project. In response, the company sought additional sanctions through the court, raising the stakes as both sides moved closer to resolution.
Meanwhile, Jeremy Cahen, Ripps’s partner in the case, had previously drawn attention for creating the NFT marketplace Not Larva Labs, inspired by the original developers of CryptoPunks. Yuga Labs itself held the intellectual property rights to CryptoPunks at one point, underscoring the close connections and rivalries within the rapidly evolving NFT ecosystem.
“We have maintained throughout this process that our intellectual property rights must be protected for the integrity of the NFT market,” a Yuga Labs representative emphasized in court statements, reinforcing the company’s stance on safeguarding its brand against what it sees as misuse.
The settlement, which puts a formal end to Ripps’s ability to use Bored Ape Yacht Club’s images and branding, marks a notable closure in a case that had set precedents and fueled debate over the limits of artistic freedom in the world of blockchain-based art.
Although the agreement’s terms are still undisclosed, the outcome highlights ongoing uncertainties regarding copyright and trademark law in the rapidly growing NFT realm. Many observers see this case as a bellwether for future disputes involving digital collectibles, as courts continue to navigate the boundaries of digital ownership and creative expression.
For Yuga Labs, the legal journey underscores the challenges of enforcing brand protection in an industry characterized by both innovation and controversy. The company has repeatedly argued that strong legal standards are necessary to maintain community trust and uphold the value of NFT assets.
On the other hand, for artists like Ripps and platforms like Not Larva Labs, the episode prompted debates over how much leeway creators should have to reimagine or critique existing NFT projects. As the dust settles, the outcome may influence art-focused NFT projects and their approach to leveraging popular digital symbols.
Observers say the case is likely to remain influential, shaping guidelines for intellectual property rights in the digital space while also fueling discussion on freedom of artistic expression. Both artists and companies in the NFT ecosystem are watching closely as the implications of this settlement ripple outward.
Looking ahead, industry insiders expect the legal aftermath of this dispute to inform policymaking, contract design, and platform governance across the NFT landscape. While many wait to see whether details of the settlement will eventually be revealed, one thing is clear: the intersection of art, technology, and the law is more complex—and contested—than ever before.
