The US Appeals Court has undid the $8.8 million copyright case previously won by Yuga Labs against a digital artist.
Yuga Labs is the company behind the Bored Ape Yacht Club (BAYC) NFTs, perhaps the most popular NFTs in the world. The series consists of logos featuring a bored-looking ape in various forms and attire. In June 2022, Yuga Labs filed a lawsuit against digital artist Ryder Ripps for false advertising, copyright infringement, and other charges. The lawsuit was brought forward primarily because Ripps had also created a series of digital artworks similar to the BAYC NFTs. The suit also named Jeremy Cahen, the owner of the NFT marketplace that sold Ripps’s works.
Ryder Ripps contended that his artworks were “satirical works of appropriation art”, while also accusing the BAYC artworks of ‘racist imagery’ and ‘ties to online alt-right. ’ In October 2023, the US District Court of Central California ruled in favor of Yuga Labs and ordered Ripps and Cahen to pay $1.8 million. With attorney fees and an additional $200,000 in statutory damages, they owed the company a total of $8.8 million.
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However, now the US Circuit Court of Appeals has overturned the previous decision, which means that the case will go back to the federal court in California, where it will be decided if the charges against Ripps and Cahen hold any merit. The appeals court also outlined that appropriation works like satire are not automatically exempt from copyright infringement.