Yuga Labs settles lawsuit with artists over NFT copies

Yuga Labs reached a settlement with several artists in a lawsuit over alleged copies of its nonfungible token designs. The parties did not publicize the settlement terms.

The company had sued creators who it said produced and sold images substantially similar to its trademarked and copyrighted works, including designs tied to the Bored Ape Yacht Club. Yuga sought to halt the sale and distribution of the disputed pieces and requested damages for alleged intellectual property infringement.

Court records show the case was active for several months. During that time both sides exchanged legal filings and prepared for further proceedings. The settlement closed those filings and the pending claims were removed from the court docket.

Yuga Labs owns the Bored Ape Yacht Club collection and acquired the CryptoPunks and Meebits intellectual property in 2022. In recent years Yuga has filed multiple actions to enforce its copyrights and trademarks.

Court documents state Yuga alleged the contested works could cause consumer confusion and dilute its intellectual property. The artists disputed parts of those claims and at least some indicated they were prepared to contest the allegations in court before the settlement.

No financial terms were disclosed. Filings indicate the settlement includes at least an agreement to halt the disputed sales, but the parties did not describe any specific remedies or licensing arrangements.

The settlement resolves the litigation without a court ruling on the underlying claims. Legal questions about when referencing or reworking existing digital art crosses into infringement remain unresolved, and outcomes in similar NFT cases have varied.