New Decision from the Southern District of New York – Hermes International and Hermes of Paris, Inc. v. Mason Rothschild 1:22-cv-384-JSR
Hermes International and Hermes of Paris, Inc. v. Mason Rothschild was a lawsuit that was filed in the United States District Court for the Southern District of New York which many have been watching to confirm what everyone thought all along. Hiding your trademark infringement within an NFT may not offer any protection against infringement any more than any other medium used for commercial purposes. This case concerned the sale of NFTs (Non-Fungible Tokens) featuring images of Hermes products, which Hermes claimed was still an infringement of its trademarks and copyrights – even though there were no physical products involved.
The jury returned a verdict 2/2/23 in favor of the plaintiffs, Hermes International and Hermes of Paris, Inc. The jury found that the defendant, Mason Rothschild, was indeed infringing on the trademarks and copyrights of the luxury goods company by creating and distributing the NFTs featuring the Hermes name and designs.
The lawsuit is significant as it highlights the complex legal questions raised by the use of NFTs, particularly regarding ownership, licensing, and trademark rights. The case also serves as a reminder that companies must be vigilant in protecting their intellectual property, especially in the fast-evolving world of digital assets where the case law is still playing catch up. Just because there may not be case law or regulation directly on point, does not mean that its OK to do whatever you want. Existing law provides ample framework to interpret what the courts are likely to do.
The verdict in Hermes International and Hermes of Paris, Inc. v. Mason Rothschild, presuming it stands, highlights the ongoing legal challenges posed by the use of NFTs and serves as a warning to individuals and companies who may be engaging in infringement of intellectual property rights as they launch creative NFT content to meet growing NFT demand.
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