The legal battle between Hermès and Mason Rothschild over the “MetaBirkins” The NFT Project continues. Now, the U.S. Court of Appeals Second Circuit is hearing the case.
It follows the jury verdict of last year. ruled in favor of HermèsRothschild ordered to pay 133,000 dollars in damages. Rothschild is now appealing that decision.
Rothschild claims that the jury erred in concluding his use of Birkin’s name as misleading. He claims that his use was artistically relevant and did not confuse consumers into thinking Hermès was involved in the project.
Rothschild launched his “MetaBirkins” NFT 2021 collection, with 100 images digitally unique of Birkin-shaped handbags. This collection generated over 250 ETH worth of trading volume at that time, which was equivalent to $420,000. The starting price for each NFT was around 3.8ETH or approximately $6,200.
The jury, however, found that these NFTs were likely to confuse consumers, believing they were affiliated with Hermès when no such relationship existed. Rothschild contends that the court misinterpreted his intentions, focusing too much on the idea that he aimed to profit from Hermès’ reputation rather than recognizing his project as a form of artistic expression.
Rothschild raises in his appeal a wider issue. He argues that trademark laws should not be applied to NFTs which are digital assets. He claims that since NFTs exist in the digital realm, Hermès’ trademark infringement claims do not hold up legally.
The 2023 verdict was overturned by a U.S. federal district court judge in New York. “MetaBirkin” NFTs to be exhibited at the Spritmuseum in Stockholm earlier this year, with the condition that the museum must inform visitors that a jury had determined Rothschild intended to mislead the public about Hermès’ involvement.
The case in question is not unique to the NFT industry. There have been other legal disputes that involve digital assets or trademark violations. Yuga Labs – the company that created the Bored Ape Yacht Club Collection (BAYC), faced a legal battle when Ryder Ripps claimed to have copied the artworks from the BAYC collection. By October 2023. Yuga Labs won a copyright lawsuit against Ripps. In California, a federal court judge has awarded damages of $1.6m and fees.
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Source: blog.cryptoflies.com
