Yuga Labs Settles Bored Ape NFT Lawsuit Without Trial

Yuga Labs Settles Bored Ape NFT Lawsuit – Dispute Over Alleged Copycat Tokens Ends Without Trial

Key Takeaways

• Yuga Labs has settled its two year lawsuit against artist Ryder Ripps and Jeremy Cahen over the RR/BAYC NFT collection.
• The settlement permanently bars the defendants from using Yuga Labs trademarks and imagery, according to a court filing.
• A prior ruling that awarded Yuga nearly $9 million in damages was overturned on appeal.
• The agreement avoids a jury trial on whether buyers were misled by the alleged copycat NFTs.

Settlement Brings Two Year Legal Dispute to a Close

Yuga Labs has reached a settlement in its lawsuit against artist Ryder Ripps and Jeremy Cahen over the RR/BAYC NFT collection. The agreement ends a legal battle that began in 2022 and focused on whether the defendants unlawfully copied and profited from the Bored Ape Yacht Club brand.

According to a filing in California federal court, proposed court orders would permanently bar Ripps and Cahen from using Yuga Labs trademarks and imagery. The specific financial or contractual terms of the settlement were not disclosed.

By settling, both sides avoid a jury trial that would have examined whether the RR/BAYC NFTs misled buyers into believing they were associated with or endorsed by Yuga Labs. The resolution closes a high profile case involving one of the most recognizable NFT collections in the market.

Background: RR/BAYC and Claims of Trademark Infringement

Yuga Labs is the creator of the Bored Ape Yacht Club, a non fungible token collection that became one of the most recognizable NFT brands during the market’s peak. In 2022, the company sued Ripps and Cahen, alleging that their RR/BAYC NFT collection reused Bored Ape imagery and generated millions of dollars by confusing buyers.

Yuga Labs argued that the RR/BAYC project amounted to trademark infringement and unfair competition. The company claimed that the defendants sold lookalike tokens that capitalized on the brand recognition of Bored Ape Yacht Club.

Ripps and Cahen, in contrast, maintained that their project was a satirical response to the original Bored Ape Yacht Club collection. The central legal question became whether the RR/BAYC NFTs constituted protected artistic expression or whether they crossed the line into trademark infringement by creating consumer confusion.

For NFT market participants, the distinction between parody and infringement is significant. Trademark enforcement can affect how collections are marketed, how intellectual property is licensed, and how platforms assess potential legal risk when listing digital assets.

Initial $9 Million Award Overturned on Appeal

The case had already produced a major court decision before the settlement. A district judge initially sided with Yuga Labs and awarded the company nearly $9 million in damages and fees.

However, that ruling did not stand. An appeals court later overturned the decision, concluding that a jury should determine whether buyers were actually misled by the RR/BAYC NFTs. The appellate decision reopened the factual question of consumer confusion, which is central in trademark disputes.

This development significantly altered the legal trajectory of the case. Instead of a finalized damages award, the parties were headed toward a jury trial that would have examined evidence related to branding, marketing, and buyer perception.

The settlement eliminates the need for that trial. It also removes the uncertainty associated with a jury verdict, which could have clarified or reshaped how trademark law applies to NFT projects that reference or reuse existing imagery.

Implications for NFT Branding and Platform Risk Assessment

Although the settlement terms remain confidential, the permanent bar on using Yuga Labs trademarks and imagery sets a clear boundary in this specific dispute. For creators and platforms, the outcome underscores that trademark claims in the NFT space can lead to extended litigation and potential injunctive relief.

If you use NFT marketplaces or evaluate digital asset projects, trademark disputes can affect token availability, secondary market liquidity, and overall brand perception. Legal uncertainty may influence how platforms handle collections that resemble established brands, especially when parody or commentary is asserted as a defense.

The Bored Ape Yacht Club has been described as one of the most recognizable NFT brands. As a result, litigation involving that collection has attracted industry attention. Legal clarity around intellectual property rights remains a central issue for projects that rely on strong branding and community identity.

By ending the case through settlement, the parties avoid a precedential jury decision. At the same time, the dispute illustrates how traditional trademark law is being applied to blockchain based assets and digital collectibles.

Our Assessment

The settlement between Yuga Labs and the creators of the RR/BAYC collection concludes a two year legal battle over alleged copycat NFTs. The agreement permanently restricts the defendants from using Yuga trademarks and imagery and avoids a jury trial on whether buyers were misled. A prior $9 million damages award had been overturned on appeal, leaving the core issue of consumer confusion unresolved in court. For NFT market participants, the case highlights the legal risks associated with reusing recognizable branding in tokenized digital assets.