Yuga Labs Inc sues Ryder Ripps over selling counterfeit NFTs of Bored Ape Yacht Club
Yuga Labs Inc sues Ryder Ripps over selling counterfeit NFTs of Bored Ape Yacht Club.
Yuga Labs Inc, creator of the Bored Ape Yacht Club Non-Fungible Token (NFT) has filed a trademark infringement suit against an artist and the creator of gordongoner.net, Ryder Ripps for selling fake Bored Ape Yacht Club NFT to over 1000 customers.
It is claimed that Ripps has made over $5 million in a pump and dump scheme by selling counterfeit NFT under the name 'RR/BAYC'.
The suit filed in the LA district Court states that Ripps has been selling fake NFTs under the same logo as Yuga Labs Inc which has led to confusion amongst consumers. Additionally, Ripps is also promoting a new marketplace called "Ape Market" NFT marketplace wherein members are required to purchase fake NFTs for access.
It is claimed that Ripps has sold its fake NFTs in the OpenSea NFT marketplace where the original Bored Ape Yacht Club NFTs are sold. However, the same was eventually removed.
Ripps' attempts to promote its fake NFTs on social media using Yuga Labs' trademark have consumers believing that both entities are connected.
In response to this, Ripps has claimed his NFTs to be a 'satire' and has thereby alleged several racism claims against Yuga Labs on Twitter. It is said to be a part of the long-standing harassment campaign.
Bored Ape NFT gained immense popularity in the NFT art market for depicting digital profile images of apes, making more than $2.2 billion in sales since its release in 2021. According to the blockchain data tracker Crytoslam, "Owning a Bored Ape NFT comes with certain privileges, including a license to use the artwork behind the NFT and access to an exclusive virtual clubhouse."
Ripps identified himself as American conceptual artist, programmer, and, creative director and is a digital artist listed in Forbes 30 under 30 in 2016.
Ripps is sued for false designation of origin, false advertising, cybersquatting, common law trademark and unfair competition, unjust enrichment, conversion, and intentional and negligent interference with prospective economic advantage.
