A US appeals court has overturned a lower court's decision, requiring Yuga Labs to provide stronger evidence that a 'satirical' version of its Bored Ape Yacht Club NFTs was intended to deceive potential buyers. The Ninth Circuit Court of Appeals ruled that the lower court's finding of trademark infringement by Ryder Ripps' NFT collection must be re-examined. Ripps and his partner, Jeremy Cahen, had argued that their NFTs were a satirical response to the original BAYC.
Yuga Labs had sued in 2022, alleging trademark infringement and cybersquatting. Although the court acknowledged Yuga Labs' priority on the trademark, it stated that the company had not sufficiently proven that Ripps' NFTs caused confusion among consumers. As a result, Yuga Labs will need to retry the case and convince a factfinder of its claims.