Hermès International et al v. Rothschild

Luxury fashion brand Hermès International SA has emerged victorious in a lawsuit against digital artist Mason Rothschild over his creation and sale of non-fungible tokens (NFTs) featuring digital images of the company's iconic Birkin luxury handbag covered in cartoonish fur.

Hermès argued that Rothschild's sale of the NFTs violated their rights to the "Birkin" trademark, a claim that a Manhattan federal jury agreed with, awarding the company $133,000 in damages.

The case examined how NFTs, which have surged in popularity over the past two years, should be viewed through the lens of intellectual property law. The ruling could set a precedent for future cases that test the line between art and consumer products. Rothschild had created and sold 100 MetaBirkin NFTs in late 2021, priced at around $450 each, with resale values skyrocketing to tens of thousands of dollars.

During the trial, Rothschild argued that his NFTs were works of art protected by the First Amendment, similar to Andy Warhol's silk-screen prints of Campbell's soup cans. However, Hermès argued that the MetaBirkins were more like consumer products subject to strict trademark laws that protect brands from copycats and those looking to capitalize on their goodwill. Hermès filed the suit after observing that some media outlets had incorrectly identified the MetaBirkins as being a project endorsed by the company.

The jury ultimately sided with Hermès, determining that the NFTs were more like consumer products than works of art, and Rothschild's use of the Birkin trademark was likely to cause consumer confusion and constitute trademark infringement.

The verdict may have implications for NFT artists who want to use trademarks in their projects, and could set a precedent for future cases. However, the legal landscape around NFTs and intellectual property law is still evolving, and it remains to be seen how courts will interpret these issues in the future.

Send us an e-mail for your legal inquiries:

ip@suniplaw.com

Copyright © 2023, Sun & IP Law Office, PLLC for firm website

All rights reserved. Any reproduction of any content of this site is prohibited.

Disclaimers: This content is provided for informational purposes only; it is not legal advice and may not be relied upon as such. We make no representations as to the accuracy, completeness, suitability, or validity of any information on our website and will not be liable for any errors or omissions in them for delays in publication of information, or for any losses, injuries, or damages arising from the display or use for any other reason whatsoever. No endorsement of any product or service mentioned on our website is expressed or implied. All information is provided on an as-is basis. Linked resources are beyond the control of us, and we shall have no responsibility whatsoever for the acts or omissions of such third parties. Comments are solely the work of their authors and as such do not necessarily reflect the views of us or our employees. Neither the use of content provided on our website nor the submission of any information through our website creates an attorney-client relationship between you and us. Please be aware that any information that you provide through this website is not secure and it is not privileged or confidential. In fact, by posting you intend that your comment be displayed so that others can read it and comment on it. We reserves the right to edit submissions for any reason in its sole discretion.