Judge Rejects Counterclaims, Orders $9M Payout in Ryder Ripps vs Yuga Labs Case

In a recent update to the ongoing lawsuit between artists Ryder Ripps and Jeremy Cahen and Bored Ape Yacht Club (BAYC) creator Yuga Labs, the court has dismissed the counterclaims put forth by Ripps and Cahen. The court has ordered them to pay a hefty sum of $9 million, which includes lawyer fees, expert witness fees, and disgorgement. In the original ruling, Ripps and Cahen were already required to pay $1.57 million in damages to Yuga Labs.

The lawsuit stems from Ripps and Cahen’s creation of unauthorized versions of Bored Ape Yacht Club non-fungible tokens (NFTs), under the name Ryder Ripps BAYC (RR/BAYC) collection. They used the similarity in the names to leverage their own brand and gain attention. Yuga Labs successfully sued them for copyright infringement, and the judge ruled in favor of Yuga Labs back in April 2023.

The recent court filing dismisses Ripps and Cahen’s counterclaims against the charges. It also instructs them to dispose of any RR/BAYC NFTs they possess by either destroying them or handing them over to Yuga Labs for destruction. This is a blow to the artists, as they now face significant financial penalties.

Cahen, also known as Pauly0x, has announced their intention to appeal the decision to the Ninth Circuit Court of California. They believe that the ruling was unjust and plan to fight for a different outcome. Despite this, for now, they are required to comply with the court’s order.

Ripps and Cahen had put forth claims against Yuga Labs, alleging intentional infliction of emotional distress, negligent infliction of emotional distress, and a declaratory judgment of no defamation. The judge dismissed Yuga Labs’ first and third cause of action against them, which accused them of false destination of origin and cybersquatting.

In addition to the financial penalties, Ripps and Cahen are also required to hand over all the social media accounts associated with RR/BAYC NFTs, as well as the smart contract. The court’s filing stated that they must destroy any other infringing materials related to BAYC, including NFTs, articles, documents, software, promotional items, or advertisements that they possess or control.

This recent development highlights the seriousness of copyright infringement in the world of NFTs. It serves as a reminder to artists and creators to respect intellectual property rights and avoid unauthorized use of established brands or copyrighted content.