In a landmark ruling, a federal judge has imposed a permanent ban on a non-fungible token (NFT) creator from selling digital art collectibles inspired by Hermes’ famous Birkin bags. This decision concludes a prolonged legal battle that has proven to be an eye-opening experience for NFT creators. Presiding over the case in the U.S. District Court for the Southern District of New York, Judge Jed Rakoff ordered Rothschild and his associates to refrain from minting or selling MetaBirkins NFTs or using associated online domains.
The verdict underscores a jury’s findings that collection creator Mason Rothschild attempted to dupe consumers with his digital art pieces, leaving them with the misconception that his artworks were connected to Hermes’ luxury bags. According to Judge Rakoff’s filing, the jury discovered that Rothschild, who self-professes as a marketing strategist, intentionally sought to bewilder consumers. He stated, “In effect, the jury found that Rothschild was simply a swindler.”
The issuance of this permanent injunction marks the final judgment in this contentious lawsuit. While Rothschild may yet appeal the ruling, his attorney declined to comment on the matter.
MetaBirkins raked in more than $1 million in sales from its collection of 100 digital art collectibles when it was first released in December 2021. However, in January 2022, French fashion giant Hermes International filed a lawsuit against the California-based NFT creator, alleging infringement on its intellectual property rights. Subsequently, a jury sided with Hermes in February, awarding the company $133,000 in damages.
This ruling against Rothschild is a cautionary tale for other creators in the underregulated NFT sphere, where infringement of intellectual property is not entirely unheard of. NFT analytics firm bitsCrunch recently highlighted a popular NFT collection, Coodles, for its usage of McDonald’s recognizable golden arches logo. Similarly, last year, Nike sued sneaker reseller StockX for selling unauthorized images of its sneakers as NFTs.
With the digital art sector flourishing and evolving rapidly, the MetaBirkins case illustrates the complexities surrounding NFTs, intellectual property rights, and the importance of enforcing such rights in the burgeoning digital market. This case has brought to light the gray areas in this emerging sector, consequently prompting important conversations surrounding regulations and ethical practices within the industry. As the NFT marketplace continues to mature, stronger regulatory frameworks will likely be necessary for maintaining trust and integrity, and to protect the interests of stakeholders on all sides.
Source: Coindesk
