The Metabirkin case has been to court
…and the New York City jury has found in favour of Hermès!
The jury awarded Hermès $133,000 in total damages for trademark infringement, dilution, and cybersquatting. Approximately £109.836,99 or approximately 929.102,76 DKK.
What a magnificent victory for Hermès.
This is a historical judgement because it touches upon the trademark protection in relation to NFTs.
There was no protection for the artist, Mason Rothschild, despite the First Amendment which normally grants free speech.
The decision may be appealed, however it provides guidance for those that are wanting to enter into the metaverse. This means that the real world intellectual property rights do apply and can be extended to virtual worlds.
The parties have higly disputed the NFTs. Hermès basically saying that the artist was looking to take advantage or their highly iconic bag. I think the expression is "digital speculator" Where as the artist was arguing that it was "a commentary on consumerism" and other issues, and therefor protected from liability by freedom of speech.
It wasn't seen to be in the artist's favour to see the NFTs as a "cash cow".
So while the final outcome of the case is yet to be seen, there's insight into how courts may look at the interplay of IP Rights and NFTs.
It will be very interesting to see how this case pans out. Some say that the legal system isn’t geared towards NFTs - which is true, because they are relatively new however at the moment the court system has to utilise the tools they have.
There can be no doubt that we do need an update of all our intellectual property legislations around the world.
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