In early February, following a six-day trial, a jury in the U.S. District Court for the Southern District of New York found in favor of Hermès in its claims of trademark infringement, trademark dilution, and cybersquatting against artist Mason Rothschild, the creator of the “MetaBirkins” non-fungible tokens (NFTs). Even with the First Amendment-like deference afforded to artistic works under trademark law, the jury held Rothschild liable because his “MetaBirkins” NFTs were “intentionally designed to mislead potential consumers.” As a result, the jury awarded the luxury fashion brand a total of $133,000, consisting of $110,000 for Rothschild’s net profits and $23,000 in statutory damages for cybersquatting.

The fashion industry has closely watched this landmark case (see our previous Update), which has real-world implications for all brands seeking to protect their intellectual property (IP) against unauthorized use as NFTs or in the metaverse.

Read the full blog post here on the Age of Disruption.