A US court has ruled that NFT artists Ryder Ripps and Jeremy Cahen must pay $9 million to Yuga Labs, the creators of Bored Apes Yacht Club (BAYC) NFTs, following a legal dispute that began in May 2022. Yuga Labs accused Ripps and Cahen of copying BAYC NFT designs for their own digital collectibles line called Ryder Ripps BAYC (RR/BAYC).
In addition to an initial payment of $1.57 million plus legal expenses previously mandated by the court, a recent filing has increased the penalty amount to cover disgorgement, legal fees, and expert witness fees, to be paid within thirty days. Cahen, known as @Pauly0x on X, expressed strong opposition to the updated court order, stating intentions to appeal the decision in the Ninth Circuit Court of California.
The legal battle initiated when Yuga Labs filed a lawsuit against Ripps and Cahen for copyright infringement, alleging that their RR/BAYC pieces flooded the NFT market with unauthorized replicas, consequently devaluing the original BAYC collection. Reports suggest Ripps and Cahen aimed for a payout of $100 billion, although the outcome of the case remains pending.
Given the investment nature of NFTs, the community is vigilant against scams and imposters to protect buyers. Despite a peak in NFT sales reaching around $881 million in September 2021, the sector saw a decline, with sales reported at only $10.85 million as of November 2023, amid concerns over scams and market volatility.
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