Appeals Court Revokes $9M, Affirms NFT Trademark Precedent
The U.S. Ninth Circuit Court of Appeals has vacated a $9 million award in Yuga Labs’ long‐running NFT trademark dispute with artist Ryder Ripps and Jeremy Cahen. The panel ruled that trademark infringement and the likelihood of consumer confusion must be decided by a jury at trial.
The court also confirmed that NFTs qualify as “goods” under U.S. trademark law, setting a novel legal precedent for the NFT trademark landscape. Yuga Labs originally won $1.6 million in 2023, later raised to $9 million after Ripps’ failed counterclaim. The case now returns to a California district court for a jury trial.
For crypto traders, this ruling underscores growing legal risks around major NFT brands like Bored Ape Yacht Club. Short‐term market reaction may be muted as participants await further proceedings. In the long run, clearer trademark rules could support more stable valuations for high-profile NFT collections.
Neutral
The Ninth Circuit’s decision to vacate the $9M judgment and remand the case introduces legal uncertainty, suggesting short-term volatility. However, confirming that NFTs are “goods” under trademark law establishes a stronger long-term framework for projects like Yuga Labs and the wider NFT market. Overall, the immediate price impact is likely muted as traders await district court proceedings, but the legal clarity may support stable or modestly positive sentiment in the long run.