The legal representative advocating for Ryder Ripps and Jeremy Cahen faced an uphill battle persuading a panel of judges that Yuga Labs’ case against his clients warranted dismissal under California’s anti-SLAPP statute. The recent endeavor by NFT artist Ryder Ripps to dismiss the lawsuit linked to the Bored Ape Yacht Club seems to have met skepticism.
In an October 17th hearing, three judges from the United States Court of Appeals for the Ninth District displayed hesitancy toward the arguments presented by Ripps and Cahen’s attorney, WilmerHale partner Thomas Sprankling. The attorney contended that the case should have been dismissed on the grounds of free speech. Sprankling positioned Ripps and Cahen as selling knock-off Bored Ape NFTs in a manner that protested the alleged anti-Semitic imagery within the Yuga Labs-created collection.
He consistently portrayed their NFT sales as an avant-garde exercise, pushing the boundaries of speech, and argued that Yuga’s lawsuit should be dismissed under a California law targeting intimidatory lawsuits, known as strategic lawsuits against public participation or SLAPP. Sprankling conveyed to the judges that the anti-SLAPP statute serves as a “prophylactic,” extending slightly beyond the bounds of the First Amendment to prevent the intimidation of speech in litigation, as witnessed in this case.
In their anti-SLAPP motion, Ripps and Cahen asserted that Yuga Labs initiated the lawsuit to stifle their “protest” art and burden them with legal costs. However, the judges seemed focused on the secondary sales of the NFTs, dismissing arguments reliant on artistic criticism. “He was selling the same images, on the same marketplaces, on virtually indistinguishable NFT identifiers,” remarked Judge Anthony Johnstone in response to Sprankling’s argument. “I’m still not seeing it,” added Judge Morgan Christen.
Yuga Labs initially filed a complaint against Ripps and Cahen in July 2022, alleging they made millions through trademark infringement, false advertising, and unfair competition following the release of the RR/BAYC NFT collection. On April 21, a California District Court determined that Ripps and Cahen had infringed Yuga Lab’s trademarks with their RR/BAYC NFT collection. While Judge John Walter has conducted a bench trial to assess damages owed to Yuga Labs, the case’s conclusion remains pending.
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