Yuga Labs Secures Permanent Control Over Bored Ape Assets After Long Legal Fight With Copycat NFT Project

Yuga Labs Secures Permanent Ban On Artists Using Bored Ape Imagery

After nearly four years of legal conflict, Yuga Labs has officially settled its lawsuit against conceptual artist Ryder Ripps and his collaborator Jeremy Cahen over the RR/BAYC NFT collection.

The dispute centred on allegations that the duo copied imagery and branding from Yuga’s Bored Ape Yacht Club (BAYC) series, generating revenue while creating confusion in the NFT market.

Settlement Brings End To Long-Running NFT Dispute

Court filings in the District Court for the Central District of California show that Ripps and Cahen have agreed to a permanent injunction barring them from using any Yuga Labs trademarks or imagery across NFTs, websites, social media, or other products.

They are also required to transfer control of all smart contracts, domains, and remaining RR/BAYC NFTs to Yuga Labs within 10 days.

The agreement prohibits the defendants from “transfer, assign, conceal, or otherwise dispose of any NFTs, domains, accounts, or other assets referenced in this Injunction, or cause any of the foregoing, for the purpose of avoiding or frustrating compliance,” effectively dismantling the RR/BAYC ecosystem.

How The Legal Battle Played Out

Yuga Labs filed its lawsuit in June 2022, accusing Ripps and Cahen of trademark infringement and profiting from lookalike NFTs that mimicked the Bored Ape designs.

Ripps and Cahen defended their project as satire, claiming it was expressive appropriation art protected under the First Amendment.

In April 2023, U.S. District Judge John Walter ruled in favour of Yuga Labs, stating that the RR/BAYC tokens could cause market confusion and violated trademark protections.

He ordered the artists to pay nearly $9 million in disgorged profits, penalties, and attorneys’ fees.

However, the Ninth Circuit Court of Appeals later overturned part of the ruling, rejecting Yuga’s summary judgment while dismissing much of Ripps’ fair use arguments, and sent the case back for a jury trial.

This appellate decision reinforced the principle that NFTs can fall under trademark protection while leaving unresolved questions about parody and expressive works.

Broad Restrictions Shut Down RR/BAYC Project

Under the settlement, any further minting, marketing, promotion, or royalty collection from the RR/BAYC NFTs is prohibited.

Yuga Labs gains control of all associated infrastructure, including websites, smart contracts, and social media accounts.

Defendants must also remove existing content referencing BAYC branding and certify their compliance.

The measures effectively end the RR/BAYC project and prevent any future activity that could infringe on Yuga’s intellectual property.

Implications For NFT Ownership And Trademark Law

While the settlement avoids a final jury ruling, it signals strong enforcement of IP rights in the NFT space.

Collections are treated as commercial products, and courts are willing to extend control over related digital infrastructure, including smart contracts and online accounts.

The case illustrates the limits of using satire or artistic commentary when leveraging well-known NFT branding that may mislead consumers.

It also emphasises the need for NFT creators to secure clear rights to the imagery and names they employ, as strong IP protections can shield collections from copycat projects and potential legal disputes.

Jury Trial Avoided But Questions Remain

By settling, both sides avoid the uncertainty of a jury trial that could have set broader precedent for the intersection of parody and trademark law in NFTs.

The financial terms remain undisclosed, but the injunction cements Yuga Labs’ control over one of the most recognizable brands in the digital asset market.

The resolution is likely to influence how NFT creators approach branding, licensing, and derivative works in the years to come, while reinforcing that even digital art and decentralised projects are subject to traditional intellectual property frameworks.