Write About Everything

Why Hermès Winning The Landmark MetaBirkins NFT Trademark Trial Is A Gamechanger.

A nine-person federal jury in Manhattan ruled on 8 February that MetaBirkins, interest NFT projects a collection of non-fungible tokens (NFTs) created by artist Mason Rothschild, violated the trademark rights of luxury French fashion house Hermès. The jury also concluded that NFTs are not covered under the First Amendment to the US Constitution, which means that they are not protected speech.

The jury awarded Hermès USD 133,000 in damages for trademark infringement, dilution, and cybersquatting.

The case in the US District Court for the Southern District of New York was being closely watched as it was the first ever to explore how trademark laws apply to NFTs, whose ownership is verified on blockchains.

What was the MetaBirkins NFT case all about?

A screenshot showing MetaBirkins on the NFT project’s official site. (Image credit: Screenshot/MetaBirkins)

Hermès sued Rothschild for trademark infringement in January 2022. The company accused the artist of misleading consumers into believing that the MetaBirkins NFT project was associated with Hermès.

According to Reuters , NFT Hermès called Rothschild a “digital speculator” and the NFTs a “get rich quick” scheme in its lawsuit.

Rothschild’s project started in 2021 with an aim to create 1000 MetaBirkins, interest NFT projects which are NFTs that present Hermès’ iconic Birkin luxury handbag in colourful, cartoonish fur instead of leather.

According to The New York Times , only 100 have been released so far. The artist estimated that the NFTs brought him USD 125,000, NFT including sales and royalties.

On the other hand, Hermès said that Rothschild started offering the NFTs at Art Basel in Miami in December 2021 and over USD 1 million had been traded by early January 2022. Hermès’ lawyers told the jury that the reason for the sales was the Birkin name.

As per Bloomberg Law , while physical Birkin bags can range from USD 12,000 to around USD 200,000, Rothschild’s NFTs were offered for around USD 450 each. The resale value of the NFTs, however, shot up to tens of thousands of dollars.