Key Takeaways
- A two-year legal battle between Yuga Labs and artist Ryder Ripps over derivative Bored Ape NFTs has reached a settlement
- Ripps’ RR/BAYC project utilized Bored Ape Yacht Club graphics, which he defended as satirical commentary and artistic expression
- While a district court previously granted Yuga close to $9 million in compensation, an appellate panel reversed that decision
- Under the settlement agreement, Ripps and partner Jeremy Cahen face a permanent injunction against utilizing Yuga’s intellectual property
- Financial details of the settlement arrangement remain confidential
The legal dispute between Yuga Labs and conceptual artist Ryder Ripps, along with his collaborator Jeremy Cahen, has concluded with a settlement agreement. The controversy revolved around a derivative NFT project that appropriated visuals from the Bored Ape Yacht Club franchise.
🚨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
The litigation commenced in 2022 when Yuga alleged that Ripps and Cahen marketed similar digital tokens branded as RR/BAYC, generating substantial revenue by misleading purchasers into believing these assets were affiliated with the authentic collection.
Ripps contested these allegations vigorously. He characterized his endeavor as “expressive appropriation art” and maintained it represented satirical commentary safeguarded by First Amendment protections. Additionally, he leveled accusations that the authentic Bored Ape Yacht Club contained concealed racist and antisemitic symbolism within its designs—claims Yuga dismissed as components of a targeted harassment effort.
During 2023, U.S. District Judge John Walter rendered a verdict favoring Yuga. His decision concluded that the imitation tokens risked creating marketplace confusion and infringed upon Yuga’s trademark protections.
Walter mandated that Ripps and Cahen remit approximately $9 million encompassing profit disgorgement, damages, and attorney costs.
Appellate Intervention Reshapes Case
The U.S. Court of Appeals for the Ninth Circuit subsequently reversed that judgment. Though the appellate panel rejected most of Ripps’ fair use defense, it nullified the $9 million award and mandated jury trial proceedings to determine whether actual consumer confusion occurred.
Legal experts consider that Ninth Circuit determination as establishing important precedent regarding trademark protection applicability to NFTs.
The newly-reached settlement eliminates the necessity for trial proceedings. Court documentation submitted in California federal court includes proposed injunctive orders permanently prohibiting Ripps and Cahen from utilizing Yuga’s trademarks or visual assets moving forward.
Monetary aspects of the settlement remain undisclosed to the public.
Additional Context on the Defendants
Ripps had previously generated controversy by asserting he eliminated the private cryptographic keys controlling the RR/BAYC collection. Yuga subsequently petitioned the court to impose sanctions regarding that assertion.
Cahen, who operates under the pseudonym Pauly0x online, had established an NFT trading platform titled Not Larva Labs. This designation alluded to Larva Labs, the original developers of CryptoPunks. Yuga Labs previously acquired the CryptoPunks intellectual property rights.
Bored Ape Yacht Club emerged as among the most prominent NFT franchises during the digital collectibles boom. The series attracted high-profile celebrity collectors and commanded premium valuations throughout the NFT marketplace.
The protracted legal confrontation officially concluded with the settlement filing on April 8, 2026.
