The Ninth Circuit Court of Appeals has decided to reinstate the trial in the case between Yuga Labs and the creators of the parody NFT collection RR/BAYC — artist Ryder Ripps and developer Jeremy Cahen. The RR/BAYC collection, created in 2022, mimics the well-known Bored Ape Yacht Club series, which has led to allegations of intellectual property infringement.
This is reported by Business • Media
Key Decisions of the Appeals Court
The court overturned the previous ruling ordering Yuga Labs to pay over $9 million, as the conclusions of the trial judge were made without the involvement of a jury. Now, the jury will determine whether the parody collection misled buyers, which is crucial for establishing trademark infringement.
“Some factors indicated a likelihood of confusion, some did not, and some were neutral,” the court’s ruling stated.
The court also affirmed that NFTs can be recognized as trademarks eligible for protection under the US Trademark Act (Lanham Act). Thus, the defense’s arguments that digital tokens are “too intangible” for legal protection were rejected.
Implications for the NFT Market
The court upheld the dismissal of counterclaims by Ripps and Cahen, including their complaints about Yuga Labs’ alleged false representation of intellectual property rights during content removal. At the same time, the judges emphasized the importance of the ruling for the entire NFT industry, noting that Yuga Labs’ products are not just “monkey business,” but also objects that deserve protection under trademark law.
Yuga Labs co-founder Greg Solano commented on the ruling:
“The Ninth Circuit confirmed: BAYC NFTs are trademarks eligible for protection. This is an important victory for every NFT owner,” wrote Yuga Labs co-founder Greg Solano on X (formerly Twitter).
It is worth noting that in April 2025, Yuga Labs initiated another lawsuit against Jeremy Cahen for the forced collection of cryptocurrency amounting to nearly $400,000 due to non-compliance with a court ruling.
The RR/BAYC collection was created as a parody of the Bored Ape Yacht Club and, according to its creators, contained elements of criticism regarding ties to hate symbolism — allegations that Yuga Labs categorically denies. The initial court ruling required the defendants to transfer all NFTs and intellectual property rights, as well as pay millions in legal fees; however, this ruling has now been overturned.
The court’s decision came amid a resurgence of activity in the NFT market, where trading volumes for leading collections such as CryptoPunks, Bored Apes, and Pudgy Penguins have significantly increased over the past month, and the total market capitalization of NFTs has exceeded $6 billion.