U.S. Appeals Court Overturns Yuga Labs’ $9M Award

The court’s decision highlights the necessity for concrete evidence of consumer confusion in NFT trademark disputes, likely influencing future cases. The market responded neutrally with no rapid changes reported in the NFT or DeFi sectors.

A U.S. Appeals Court recently overturned a $9 million award in a case involving Yuga Labs and artist Ryder Ripps, regarding NFT trademark infringement. This decision is part of legal proceedings challenging the intellectual property rights surrounding NFTs. Yuga Labs, known for its Bored Ape Yacht Club NFTs, faces a legal challenge from Ryder Ripps, who claims his NFT project was art. The case now requires further evidence of consumer confusion.

The panel held that an NFT can be trademarked because it is a ‘good’ under the Lanham Act, which protects marks used with ‘any goods or services’… – Ninth Circuit Opinion, July 23, 2025

The ruling has legal implications for intellectual property in the NFT industry, potentially changing how NFTs are viewed under U.S. trademark law. Immediate impacts on trading volumes or market prices are not observed. This legal change emphasizes the growing recognition of NFTs as “goods,” prompting a revision in existing legal frameworks. The emphasis on consumer confusion evidence may shape upcoming trademark disputes in the technology sector. The case mirrors historical precedents like “Hermès vs. MetaBirkins,” reinforcing the need for concrete evidence in legal judgments. The technological and financial implications of this decision signal evolving legal landscapes. Market participants should closely monitor further legal developments following the court’s decision, as the ongoing discourse could influence future digital asset regulations.