Key Takeaways
- A two-year legal dispute between Yuga Labs and artist Ryder Ripps over unauthorized Bored Ape NFTs has reached a settlement
- Ripps and partner Jeremy Cahen created the RR/BAYC collection using Bored Ape Yacht Club visuals, defending it as satirical commentary
- Yuga Labs was initially awarded nearly $9 million by a district court, but the Ninth Circuit reversed the decision
- Under the settlement agreement, Ripps and Cahen are permanently prohibited from utilizing Yuga’s intellectual property
- Financial details of the settlement remain confidential
The protracted legal confrontation between Yuga Labs and digital artist Ryder Ripps, along with his collaborator Jeremy Cahen, has concluded with a settlement agreement. The dispute revolved around an NFT series that replicated visual elements from the renowned Bored Ape Yacht Club.
🚨UPDATE: @yugalabs has settled the Bored Ape NFT lawsuit over RR/BAYC copycat claims, avoiding trial and ending the dispute over alleged parody tokens of Bored Ape Yacht Club. pic.twitter.com/rr6AD7yNJB
— SolanaFloor (@SolanaFloor) April 8, 2026
Initiated in 2022, the litigation alleged that Ripps and Cahen marketed imitation digital tokens branded as RR/BAYC, generating substantial profits by misleading consumers into believing these assets were affiliated with the authentic collection.
Ripps contested these allegations vigorously. He characterized his work as “expressive appropriation art” and maintained it constituted satirical commentary entitled to First Amendment protection. Additionally, he leveled serious accusations against the original Bored Ape Yacht Club, claiming the artwork contained concealed racist and antisemitic symbols—allegations Yuga Labs dismissed as part of a coordinated harassment effort.
During 2023, U.S. District Judge John Walter delivered a verdict favoring Yuga Labs. His determination concluded that the imitation tokens created marketplace confusion and constituted infringement of Yuga’s trademark protections.
Judge Walter mandated that Ripps and Cahen remit approximately $9 million encompassing profit disgorgement, statutory damages, and attorney fees.
Appellate Court Intervention
Subsequently, the U.S. Court of Appeals for the Ninth Circuit reversed Judge Walter’s decision. Although the appellate panel rejected significant portions of Ripps’ fair use defense, it nullified the $9 million monetary judgment and mandated a jury trial to determine whether actual consumer confusion occurred.
Legal experts widely recognize this Ninth Circuit decision as establishing important precedent regarding trademark protection for non-fungible tokens.
The newly reached settlement eliminates the necessity for that jury trial. Documentation submitted to California federal court includes proposed permanent injunctions prohibiting Ripps and Cahen from any future use of Yuga’s trademarked materials or visual assets.
The monetary components of the settlement agreement were not made public.
Context About the Participants
Ripps had previously generated controversy by asserting he destroyed the cryptographic private keys controlling the RR/BAYC collection. This claim prompted Yuga to petition the court for sanctions against him.
Cahen, who operates under the pseudonym Pauly0x, had previously launched an NFT trading platform called Not Larva Labs. This naming choice directly referenced Larva Labs, the original developers of CryptoPunks. Yuga Labs previously acquired the intellectual property rights to CryptoPunks.
Bored Ape Yacht Club emerged as among the most prominent NFT properties during the digital collectibles boom. The collection attracted high-profile celebrity purchasers and commanded some of the highest transaction values in the NFT marketplace.
The extensive legal confrontation has officially concluded with the settlement filing dated April 8, 2026.
