9th Circuit Reverses Yuga Labs’ $9M BAYC Trademark Verdict

On Wednesday, the 9th Circuit Court of Appeals reversed a $9 million trademark verdict in the Yuga Labs vs. Ryder Ripps and Jeremy Cahen case. The court ruled that Yuga Labs failed to prove as a matter of law that RR/BAYC NFTs would likely cause consumer confusion or amount to cybersquatting. It affirmed that NFTs qualify as trademarked goods under the Lanham Act and that Yuga Labs holds priority on BAYC marks. The court vacated the summary judgment on trademark infringement and remanded the case for further proceedings. The ruling highlights the burden of proof for a BAYC trademark holder in NFT cases. Crypto traders should watch the retrial closely, as final rulings on the BAYC trademark could affect NFT valuations and enforcement strategies.