The Ninth Circuit Court of Appeals has ruled that non-fungible tokens (NFTs) qualify as ‘goods’ under the Lanham Act, entitling them to trademark protection. The decision in Yuga Labs v. Ryder Ripps establishes that brand owners can sue NFT copycats with the same legal tools used against counterfeit sneakers or handbags.
This landmark ruling came in response to a case involving Yuga Labs, the company behind the popular Bored Ape Yacht Club NFT collection, and Ryder Ripps, a digital artist who created a similar NFT collection that mimicked Yuga’s work. The court’s decision highlights the growing intersection between digital assets and traditional legal frameworks, opening new avenues for intellectual property enforcement in the blockchain space.
The ruling could have wide-reaching implications for the NFT market, as it provides legal recourse for companies whose digital assets are being copied. This legal precedent may also encourage more businesses to invest in NFT-related ventures, knowing that their intellectual property is now protected under existing trademark laws. Legal experts suggest that the decision could set a standard for how digital goods are regulated in the future.
As the NFT market continues to evolve, this ruling represents a significant step in the recognition of digital assets as legitimate property. The case underscores the importance of trademark law in preserving brand identity and preventing unauthorized use, even in the decentralized and borderless realm of blockchain technology.
Industry observers are closely watching the outcome of this case, as it may influence how other jurisdictions approach the legal status of NFTs. The decision is expected to impact not only NFT creators and collectors but also the broader digital economy, which increasingly relies on blockchain-based assets for commerce and identity verification.