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Ninth Circuit NFT Ruling: Trademark Rights and Consumer Confusion

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Summary

The document reviews a Ninth Circuit ruling involving Yuga Labs, Bored Ape Yacht Club NFTs, and the project by Ryder Ripps and Jeremy Cahen. It describes the court's treatment of NFTs as goods under the Lanham Act and its recognition of Yuga Labs' enforceable trademark rights. At the same time, the court reversed summary judgment on infringement and cybersquatting because consumer confusion was not conclusively established, sending those issues toward trial.

The article also discusses the rejection of First Amendment and fair-use defenses, the court's handling of a naked-licensing argument, and the document's claim that the NFTs were not securities under the Howey test. It presents these points as guidance for brands on intellectual property, marketing, and purchaser expectations. The case remains unresolved on consumer confusion, and the article offers a broad legal overview rather than a detailed account of the evidence or a trading analysis.

Key ideas

  • The ruling treated NFTs as goods eligible for trademark protection under the Lanham Act.
  • Yuga Labs' trademark rights were upheld, but consumer confusion remains to be decided at trial.
  • The court rejected the defendants' First Amendment and fair-use defenses as described in the document.
  • Clear NFT terms and marketing may affect how rights and consumer expectations are assessed.
  • The article presents the NFTs as outside securities regulation under the Howey test, while broader legal questions remain.

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Crypto

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.