{"id":296994,"date":"2023-02-08T21:11:27","date_gmt":"2023-02-08T21:11:27","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=296994"},"modified":"2023-02-08T21:11:27","modified_gmt":"2023-02-08T21:11:27","slug":"hermes-wins-case-over-artist-in-landmark-nft-trial","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/hermes-wins-case-over-artist-in-landmark-nft-trial\/","title":{"rendered":"Herm\u00e8s wins case over artist in landmark NFT trial"},"content":{"rendered":"

Luxury brand Herm\u00e8s secured a victory in the first of three landmark NFT trials slated to commence this year.\u00a0<\/span><\/p>\n

Herm\u00e8s convinced a Manhattan jury today that the digital artist behind the \u201cMetaBirkin\u201d non-fungible token collection, Mason Rothschild, violated Herm\u00e8s\u2019 rights to the \u201cBirkin\u201d trademark.<\/span><\/p>\n

The nine-member jury came to the verdict on Feb. 8, awarding Herm\u00e8s $133,000 in total damages, crushing Rothschild\u2019s hopes that his NFTs would be protected as free speech.\u00a0<\/span><\/p>\n

\"Mason
Mason Rothschild's MetaBirkin were promoted all over social media and on blogs, websites, in addition to OpenSea (Source: Instagram)<\/figcaption><\/figure>\n

Herm\u00e8s argued in their suit, filed last January, that Rothschild had unfairly sold the MetaBirkin bags as NFTs, netting him more than 55 Ethereum in profits. They argued that this caused irreparable harm to Hermes\u2019 brand after it had found numerous media outlets had incorrectly attributed the project to the official Birkin manufacturer.\u00a0<\/span><\/p>\n

\u201cIf we want to bring our bag into this virtual world, there will always be a reference to the MetaBirkins,\u201d Herm\u00e8s\u2019 general counsel Nicolas Martin told the jury during testimony.<\/span><\/p>\n

However, legal analysts say Rothschild\u2019s case was dealt a devastating blow when, on the opening day of the trial, US District Judge Jed S. Rakoff ruled that a key expert witness supporting Rothschild, a well-known New York art critic named Blake Gopnik, could not testify before the jury.<\/span><\/p>\n

Gopnik had previously written a biography about Andy Warhol, whose concept of \u201cbusiness art\u201d was used to describe how Warhol painted various everyday items, such as Campbell\u2019s soup cans, imbuing them with new meaning through the act of creation.\u00a0<\/span><\/p>\n

But it was never meant to be, with the judge ruling that Gopnik would not be permitted to testify, severely hampering Rothschild's defense.\u00a0<\/span><\/p>\n

During the trial, Rothschild's lawyers repeatedly clashed with one of Hermes' expert witnesses, who conducted a survey on behalf of Hermes to determine a \u201cnet confusion rate of 18.7%\u201d among potential MetaBirkin NFT buyers. It is unclear what methodology the expert used, but Rothschild\u2019s lawyers countered with a lower figure, tallying the net confusion rate as somewhere closer to 9.3%, per <\/span>Bloomberg Law<\/span><\/i><\/a>.\u00a0<\/span><\/p>\n

Nevertheless, it seemed Rothschild had an uphill battle throughout the trial, with several pieces of evidence entered into the trial by Hermes that proved damaging.\u00a0<\/span><\/p>\n

\u201cIt is perfectly legal for artists to make money from their art,\u201d Rothschild\u2019s attorney Rhett Millsaps said during opening arguments, but \u201cthe First Amendment limits trademark rights,\u201d he argued.\u00a0<\/span><\/p>\n

The jury did not agree.\u00a0<\/span><\/p>\n

Hermes\u2019 lawyers pointed to text messages Rothschild sent about the MetaBirkins, noting how he wanted to \u201ccreate the same exclusivity and demand for the famous handbag,\u201d using words like \u201cpump\u201d and \u201cshill\u201d to seek entry from \u201cwhales.\u201d<\/span><\/p>\n

\u201cWe\u2019re sitting on a goldmine,\u201d Rothschild said in one text promoting the project to a potential buyer.\u00a0<\/span><\/p>\n

Attorneys from Rothschild, represented by the intellectual property law experts at Lex Lumina PLLC, cited the well-established “Rogers” legal test. Originating from the 1989 ruling in Rogers v. Grimaldi,<\/em> the standard permits artists to utilize a trademark without consent as long as it satisfies a basic level of artistic significance and does not deceive consumers, a tactic that ultimately failed to convince the jury.\u00a0<\/span><\/p>\n

However, legal experts were quick to point out that the verdict does not establish a precedent for similar cases going forward, such as the <\/span>Ryder Ripps v. Yuga Labs<\/span><\/i><\/a> case.\u00a0<\/span><\/p>\n

According to University of Kentucky law professor Brian Frye, \u201cit's important to remember that this is just a jury verdict in a district court case, so it only decides this dispute and is not actually precedential for future disputes.\u201d <\/span><\/p>\n

Frye also noted that the US Supreme Court would hear a similar trademark issue this term, “I suspect SCOTUS will take a more First Amendment friendly position there,” he said.\u00a0\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Luxury brand Herm\u00e8s secured a victory in the first of three landmark NFT trials slated to commence this year.\u00a0 Herm\u00e8s convinced a Manhattan jury today that the digital artist behind the \u201cMetaBirkin\u201d non-fungible token collection, Mason Rothschild, violated Herm\u00e8s\u2019 rights to the \u201cBirkin\u201d trademark. The nine-member jury came to the verdict on Feb. 8, awarding […]<\/p>\n","protected":false},"author":1406,"featured_media":293112,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,60793,76232],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"\nHerm\u00e8s wins case over artist in landmark NFT trial<\/title>\n<meta name=\"description\" content=\"The verdict ends the year-long legal battle between the French luxury goods maker and Mason Rothschild.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/hermes-wins-case-over-artist-in-landmark-nft-trial\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Herm\u00e8s wins case over artist in landmark NFT trial\" \/>\n<meta property=\"og:description\" content=\"The verdict ends the year-long legal battle between the French luxury goods maker and Mason Rothschild.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/hermes-wins-case-over-artist-in-landmark-nft-trial\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2023-02-08T21:11:27+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/nft.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Dorian Batycka\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Dorian Batycka\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/hermes-wins-case-over-artist-in-landmark-nft-trial\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/hermes-wins-case-over-artist-in-landmark-nft-trial\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/dorian-batycka\/#person\",\"name\":\"Dorian Batycka\",\"url\":\"https:\/\/cryptoslate.com\/author\/dorian-batycka\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/dorian-batycka\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/dorian-batycka\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/dorian-author-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/01\/dorian-author-300x300.jpg\",\"caption\":\"Dorian Batycka\"},\"jobTitle\":\"Contributor\",\"description\":\"Dorian Batycka is a journalist interested in art and technology. 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