A US appeals court overturns a $9 million judgment in favor of Yuga Labs in a lawsuit against artist Ryder Ripps and Jeremy Cahen over NFT collections. The court found Yuga Labs had not proven consumer confusion. The case is sent back to a California federal court for a trial on trademark infringement and cybersquatting claims.

The three-judge panel set a legal precedent by ruling Yuga’s NFTs as “goods” under US trademark law, allowing NFT collections to potentially sue similar collections. Yuga was deemed to have trademark priority for using the Bored Ape Yacht Club marks first in commerce. Yuga co-founder Greg Solano praised the decision on X.

A federal court initially awarded Yuga $1.6 million in damages, later increased to $9 million, but the Ninth Circuit reversed the ruling due to lack of proof of consumer confusion. A federal court trial is now needed to determine if Ripps’ NFTs infringed on Yuga’s trademark. The judges also rejected claims of fair use and First Amendment protection for Ripps and Cahen.

Read more at Cointelegraph: US Appeals Court Reverses Yuga Labs’ $9M NFT Trademark Win