The U.S. Ninth Circuit Court of Appeals overturned a $9 million judgment against Yuga Labs, the company behind the Bored Ape Yacht Club (BAYC) NFTs. The company had won in its legal struggle against artist Ryder Ripps and his collaborator Jeremy Cahen on July 23, 2025.
The decision marks a significant milestone in the evolving landscape of NFT intellectual property rights. It sends the case back to a federal court in California for a trial to determine if Ripps’ “Ryder Ripps Bored Ape Yacht Club” collection infringes on Yuga Labs’ trademarks.
In 2022, Yuga Labs sued Ripps and Cahen for stealing its BAYC collection with their funny “Ryder Ripps Bored Ape Yacht Club” NFTs. Yuga Labs stated that the other collection confused customers and infringed upon its trademarks.
Ripps said that his work was a criticism of what he thought were racist images in Yuga’s NFTs, and he said that it was legitimate artistic expression. At first, a district court decided in Yuga’s favour and awarded him $1.5 million in damages, which later increased to $9 million plus legal fees.
The Ninth Circuit rejected the district court’s summary judgment, saying that Yuga Labs didn’t show that Ripps’ NFTs were likely to confuse consumers. The court made it clear that a jury trial is necessary to figure out what consumers think and want.
The court overturned the money judgment and the injunction; however, it upheld one important point: NFTs are considered “goods” under U.S. trademark law, which sets a legal precedent that makes NFT inventors safer.
The decision sets a significant precedent for the digital asset market by stating that NFTs can be protected under trademark law. Greg Solano, one of the co-founders of Yuga Labs, was happy about this part and said it was important for NFT holders.
The reversal, on the other hand, shows how hard it is to strike a balance between artistic freedom and brand protection in the NFT space. The trial will focus on whether Ripps’ collection violates Yuga’s trademarks. This could have an impact on future NFT-related lawsuits.
Ripps said the verdict was a “huge victory for artists” and stressed how important appropriation is to creative expression. Yuga Labs, which aims to keep fighting, views the trademark precedent as a triumph for the industry.
The lawsuit is now back in a California district court, where a jury will look at charges of trademark infringement and cybersquatting, as well as examine issues such as brand confusion and the creative purpose.
The Ninth Circuit’s ruling shows the complex relationship between intellectual property and free speech in the NFT space. As the case goes to trial, it will probably affect how courts handle trademark disputes in the fast-changing world of digital assets, which will help both creators and collectors understand what’s going on.
