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Judge grants Hermès request to halt all ‘MetaBirkin’ NFT sales

The MetaBirkin creator argued that his project was protected under the first amendment as artistic expression, however that defense ultimately fell short.

French luxury fashion house Hermès International has notched another win in its infringement case against artist Mason Rothschild, after a Manhattan judge ordered a permanent injunction on all "MetaBirkin" non-fungible token sales.

Hermès initially submitted the request to the Southern District of New York in March to block all sales of the MetaBirkin NFTs.

Manhattan-based U.S. District Judge Jed Rakoff officially granted the request on June 23, as he offered a skeptical take on Rothschild’s defense against Hermès’ suit, while questioning Rothchild’s continued marketing of the project.

"[The] defendant's entire scheme here was to defraud consumers into believing, by his use of variations on Hermes' trademarks, that Hermes was endorsing his lucrative MetaBirkins NFTs," Judge Rakoff said, adding that:

"Nothing in the First Amendment insulates him from liability for such a scheme."

The MetaBirkin collection consists of 100 NFT artworks depicting furry Birkin style handbags, with Rothschild reportedly generating more than $1 million worth of sales from the project.

The legal dispute began in January, after Hermès accused Rothschild’s NFT collection of improperly using its Birkin trademark and leading customers into believing the brand was supporting the project.

In February, the court ruled that Rothschild had violated Hermès trademark following a nine-member jury verdict, with the artist ordered to pay $133,000 in damages.

Rothschild had argued that his project was an artistic expression protected by the first amendment, in a similar vein that enabled Andy Warhol to legally make and sell art featuring Campbell’s soup cans.

Additionally, the artist asserted that he hadn’t explicitly misled consumers, as he had provided disclaimers explaining that Hermès had no affiliation.

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However, the judge and jury also refuted this, as the use of the word “Birkins” was brought into question.

“The jury found that his decision to use Hermès’ trademarks in the name and design of the MetaBirkins NFTs — and not just his marketing and sales techniques — was in itself explicitly misleading, and rejected his disclaimer defense,” the court doc reads.

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French Luxury Brand Hermes Wins NFT Trademark Infringement Lawsuit

French Luxury Brand Hermes Wins NFT Trademark Infringement LawsuitFrench luxury brand Hermes has won a lawsuit against an artist who depicted its famous Birkin bags in a non-fungible token (NFT) collection. The artist argued that NFTs should be covered under the U.S. Constitution’s First Amendment but the jury disagreed. Hermes Wins Lawsuit Against ‘Metabirkins’ NFT Creator French luxury design house Hermes has won […]

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Hermes v MetaBirkin: NFT trademark stoush heads to trial in Manhattan

Luxury brand Hermès filed a suit against digital artist Mason Rothschild after the artist released his Metabirkins NFT collection depicting the company's Birkin bag product without permission.

The trademark infringement trial between French luxury brand Hermès and digital artist Mason Rothschild is set to go ahead on Jan. 30 in a Manhattan federal court.

The luxury brand accused the nonfungible token (NFT) artist of trademark infringement for promoting and selling MetaBirkins, an NFT collection said to be inspired by the group's Birkin bags.

The trial and its related lawsuit in the United States District Court for the Southern District of New York can be first traced back to Jan. 14, 2022, when Hermès first filed a complaint against Mason Rothschild after the artist allegedly refused to stop selling his NFT collection.

MetaBirkins depict Birkin handbags covered in colorful fur instead of leather. Source: MetaBirkins Twitter

According to court documents filed on Jan. 23, Hermès argues the collection has improperly used the Birkin trademark and potentially confused customers into believing the luxury brand supports the project.

Meanwhile, the court docs also reveal Rothschild believes his work is protected under the First Amendment — which allows for no limits on free expression.

A number of intellectual property lawyers and legal experts have commented in the days coming up to the trial, noting the case could have implications for the NFT industry.

Laura Lamansky, an associate with law firm Michael Best & Friedrich LLP, called the case a "momentous turning point for Web3 and digital goods," in a Jan. 18 post discussing the trial and its possible implications for the future of the NFT industry.

"The question remains: to what extent are real-world trademarks enforceable in the digital world? We'll be watching this case closely to determine how best to bolster rights in the digital sphere," she said.

"It will hopefully shed some light on how artwork and the First Amendment interact with consumer goods and NFTs and how far a brand's rights in its trademarks or products extend in the digital space," Lamansky added.

Related: ‘Wave of litigation’ to hit NFT space as copyright issues abound

Blockchain and tech lawyer Michael Kasdan has also been following the case, but he does not appear to think the result will be overly significant.

"In the end it's just going to be one district court case data point but definitely an interesting one," he said.

Brands and companies have begun to crack down against NFT projects which claim to violate copyright, intellectual property and trademarks.

On Feb. 4, 2022, Nike filed a lawsuit against StockX for trademark infringement as the online reseller allegedly created NFTs in the likeness of Nike’s sneakers.

In September 2022, film director Quentin Tarantino had to settle a Miramax lawsuit after base-layer blockchain provider Secret Network announced the auction of “uncut screenplay scenes” from Tarantino’s 1994 film Pulp Fiction as NFTs.

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Hermès reveals plans for Metaverse fashion shows, crypto, and NFTs

The trademark application comes months after filing a lawsuit against NFT project MetaBirkins for allegedly using its Birkin brand to sell digital collectibles.

Luxury brand Hermès is laying the groundwork for its entrance to Web3 after filing a trademark application covering NFTs, cryptocurrencies, and the Metaverse. 

According to an Aug. 26 filing to the United States Patent and Trademark Office (USPTO), the trademark covers downloadable software to view, store and manage virtual goods, digital collectibles, cryptocurrencies, and NFTs “for use in online worlds.”

It also filed trademarks for “retail store services featuring virtual goods” as well as fashion and trade shows in “online virtual, augmented or mixed reality environments” and for “providing an online marketplace for buyers and sellers of virtual goods.”

The new trademark application comes months after filing a lawsuit against Metabirkins founder, Mason Rothschild in January for allegedly using the brand's Birkin name to make money from sales and resales for his NFT Metabirkins collection.

In a 47-page legal complaint against Rothschild, Hermés alleged that the “MetaBirkins brand simply rips off Hermés’ famous Birkin trademark by adding the generic prefix ‘meta’ to the famous trademark Birkin”, thereby creating the illusion that the MetaBirkins brand was a part of the luxury Hermés’ Birkin brand.

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The lawsuit against Rothschild could be one of the reasons why the company has gone ahead to file its own protections that will cover the Metaverse, crypto, and NFT-related products and tokens.

The luxury brand is neither the first or the likely the last to make moves in the Metaverse.

Earlier this year, Decentraland’s Metaverse Fashion Week, a four-day digital fashion event featuring wearables on virtual runways saw the appearance of luxury brands including Dolce & Gabbana, Etro, Tommy Hilfiger, Estée Lauder and Elie Saab.

Last month, data from Dune Analytics revealed that leading brands including Nike, Gucci, Dolce & Gabbana, Adidas, and Tiffany had amassed a combined $260 million worth of sales from NFTs.

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Sneaker Giant Nike Sues Online Retailer for Selling Unauthorized Nike Shoe NFTs

Sneaker Giant Nike Sues Online Retailer for Selling Unauthorized Nike Shoe NFTsNike has filed a lawsuit against an online reseller using unauthorized Nike shoe images in non-fungible tokens (NFTs). “Those unsanctioned products are likely to confuse consumers, create a false association between those products and Nike, and dilute Nike’s famous trademarks,” Nike alleges. Nike Sues Online Retailer Over NFT Sales Sneaker giant Nike filed a lawsuit […]

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