Hermes wins everlasting ban on ‘MetaBirkin’ NFT gross sales in US lawsuit

By Blake Brittain

(Reuters) – A Manhattan federal choose on Friday granted Hermes’ request to completely block artist Mason Rothschild’s gross sales of “MetaBirkin” non-fungible tokens following a jury’s verdict that they violated the French luxurious home’s trademark rights in its famed Birkin purses.

U.S. District Choose Jed Rakoff mentioned the everlasting injunction was justified as a result of Rothschild’s continued advertising and marketing of the NFTs would probably confuse shoppers and irreparably hurt the corporate.

Rakoff denied Rothschild’s requests to throw out the decision or maintain a brand new trial.

“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,” Rakoff mentioned. “Nothing in the First Amendment insulates him from liability for such a scheme.”

Representatives for Hermes and Rothschild didn’t instantly reply to requests for touch upon the choice.

NFTs are distinctive tokens on blockchain networks which are typically used to confirm possession of digital artwork. Hermes sued Rothschild final yr over his MetaBirkins, 100 NFTs related to photos depicting the luxurious home’s prized Birkin purses lined in colourful fur.

Hermes referred to as Rothschild a “digital speculator” and the NFTs a “get rich quick” scheme that infringed its “Birkin” trademark and created the misunderstanding that the style home endorsed the tokens.

Rothschild, whose authorized identify is Sonny Estival, countered that the works have been an absurdist assertion on luxurious items and immune from the lawsuit primarily based on protections within the 1st Modification of the U.S. Structure for artwork that makes use of emblems in an artistically related method with out explicitly deceptive shoppers.

A jury dominated for Hermes in February and awarded the corporate $133,000 in damages.

Hermes mentioned in a submitting in March that Rothschild continued to market his NFTs after the jury’s verdict. It requested the courtroom to drive him to cease and to show over his remaining tokens and post-trial earnings.

Rothschild advised the courtroom that Hermes’ request went “far beyond what is appropriate in a case, like this one, that involves artistic expression.”

Rakoff largely granted Hermes’ request, however determined to not order Rothschild to switch the tokens out of an “abundance of caution” for 1st Modification considerations.

The case is Hermes Worldwide v. Rothschild, U.S. District Court docket for the Southern District of New York, No. 1:22-cv-00384.

For Hermes: Gerald Ferguson, Deborah Wilcox and Oren Warshavsky of Baker & Hostetler

For Rothschild: Rhett Millsaps, Christopher Sprigman, Mark McKenna and Rebecca Tushnet of Lex Lumina; Jonathan Harris and Adam Oppenheim of Harris St. Laurent & Wechsler

Learn extra:

Hermes wins U.S. trademark trial over ‘MetaBirkin’ NFTs

Hermes asks courtroom to dam ‘MetaBirkin’ NFT gross sales after jury win

(Reporting by Blake Brittain in Washington)

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