Ninth Circuit Rules NFTs Can Be Protected by Trademark Law

What's Happening?

The Ninth Circuit Court has ruled that non-fungible tokens (NFTs) can be considered 'goods' under the Lanham Act, allowing them to be protected by trademark law. This decision came from the case Yuga Labs, Inc. v. Ryder Ripps, where Yuga Labs sued Ripps for trademark infringement related to the Bored Ape Yacht Club NFTs. The court emphasized that NFTs are commercial products with tangible value, reinforcing their status as protectable assets under trademark law. This ruling aligns with the U.S. Patent and Trademark Office's stance on trademark protection for digital assets.

Why It's Important?

The court's decision marks a significant development in intellectual property law, extending traditional trademark protections to digital assets like NFTs. This ruling provides clarity for brands and creators operating in the digital space, ensuring their virtual products can be safeguarded against infringement. As NFTs continue to gain popularity, the decision may encourage more brands to explore digital offerings, knowing they have legal recourse to protect their trademarks. The ruling also sets a precedent for future cases involving digital assets, influencing how courts interpret trademark law in the context of emerging technologies.