Yuga Labs, the creator of the Bored Ape Yacht Club (BAYC), has reached a settlement in its long-running lawsuit against artists Ryder Ripps and Jeremy Cahen, who were accused of producing and selling copycat NFTs. The agreement brings an end to a legal battle that began in 2022 and has since become one of the most closely watched intellectual property cases in the NFT space.
Court filings in the U.S. District Court for the Central District of California confirmed that both parties agreed to resolve the dispute, avoiding a jury trial that had been scheduled following a series of appeals.
Terms of the Settlement Agreement
As part of the settlement, Ripps and Cahen are permanently prohibited from using Yuga Labs’ trademarks, imagery, or branding associated with BAYC. They are also required to transfer control of all related assets from their RR/BAYC project to Yuga Labs within 10 days.
These assets include smart contracts, domain names, and any remaining NFTs tied to the disputed collection. The court further ordered that the artists must not attempt to transfer, conceal, or dispose of any related assets in a way that would interfere with compliance.
The settlement effectively consolidates control of the disputed NFTs under Yuga Labs, reinforcing the company’s claims over its intellectual property and brand identity in the digital asset space.
Background of the Legal Battle
The case dates back to June 2022, when Yuga Labs filed a lawsuit alleging that Ripps and Cahen had copied the distinctive cartoon ape images from the Bored Ape Yacht Club collection and sold them as part of a separate NFT project. Yuga argued that the artists misled buyers and generated millions in revenue by capitalizing on confusion between the two collections.
In response, the artists claimed their RR/BAYC NFTs were intended as satire and artistic commentary, arguing that their work was protected under free speech laws. This defense became a central issue in the case, raising broader questions about parody and intellectual property rights in the context of NFTs.
In April 2023, a court ruled in favor of Yuga Labs, finding that the artists had violated copyright laws and awarding damages of $1.37 million, along with additional penalties. The total financial liability later increased to approximately $9 million after further legal developments, including the dismissal of counterclaims.
Appeals and Final Resolution
Despite the initial ruling, the legal battle continued. In 2025, an appeals court vacated the earlier judgment and called for a jury trial to determine whether trademark infringement had occurred. This decision prolonged the dispute and introduced further uncertainty over how courts would interpret NFT-related intellectual property claims.
The newly reached settlement avoids that trial and brings closure to the case without a final jury verdict. While specific financial terms of the settlement were not disclosed, the agreement’s conditions strongly favor Yuga Labs in terms of asset control and brand protection.
