Hermès Prevails Over ‘MetaBirkins’ As Landmark NFT Lawsuit Comes To A Close
Last month, Hermès prepared to take on artist Mason Rothschild and his MetaBirkins non-fungible tokens (NFTs) in court, alleging the 100-piece series inspired by the iconic luxury bag infringed on its trademarks.
Now, the landmark lawsuit has come to an end, and the jury’s decision to award the victory to the fashion label could set an important precedent in the first-ever trial to tackle how digital assets should be viewed under intellectual property law.
The jury determined that Rothschild had indeed infringed on Hermès’ trademarks, and that NFTs were not protected by free speech. Unlike artworks, where appropriation is allowed, virtual tokens were deemed similar to commodities, and subject to stricter trademark laws to avoid copycats.
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Hermès was awarded US$133,000 in damages, with Rothschild criticizing the case's outcome. He claimed that the artworks should be protected by the First Amendment, and were no different from Andy Warhol’s famed silk-screen prints featuring Campbell soup cans.
Megan Noh, an art lawyer unaffiliated with the suit, told the New York Times that this verdict could set a benchmark for brands and artists going forward, drawing a more precise line “between works of artistic expression and commercial goods.”
In total, court filings showed that MetaBirkins had sold US$1.1 million worth of tokens globally, though Rothschild said he made only US$125,000 in profit from the sales and royalties. Despite using the Birkin name, he felt that consumers would not be misled by his project.
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When speaking with Bloomberg Law, intellectual property attorney Alfred Steiner explained that Rothschild’s commentary in MetaBirkins might have been lost on jurors and the general public due to its subtlety.
Whereas, in a case where the artwork would’ve differed more from the source, there may still be “room for artwork to be protected by the First Amendment,” commented Emily Poler, a New York lawyer specializing in technology and intellectual property.
Going forward, trademark rights will soon take center stage in the court of law again, as Jack Daniels battles VIP Products over squeaky dog toys resembling its famed whiskey bottles. Will more companies begin taking action against similar products? We’ll have to wait and see.
[via New York Times and Bloomberg Law, cover image via Debu55y | Dreamstime.com]
