In January 2023, luxury fashion brand Hermès won a lawsuit against a group of individuals who had created and planned to auction off an NFT featuring an image of a handbag made by the brand. The NFT, which was titled “Birkins Bag,” was created without Hermès’ permission and included the brand’s trademarked logo.

The lawsuit, which was filed in a French court, highlighted the growing importance of protecting intellectual property in the NFT space. As the use of copyrighted or trademarked material in NFTs without permission becomes more common, it is increasingly important for rights holders to take action to protect their intellectual property rights.

The defendants in the lawsuit had planned to auction off the Birkins NFT on the OpenSea NFT marketplace. The NFT included an image of a Hermès handbag, along with the brand’s trademarked logo. The defendants claimed that the NFT was a work of art and was protected under the right to freedom of expression.

Hermès, however, argued that the NFT was an illegal reproduction of its intellectual property and a violation of its trademark rights. The brand claimed that the defendants had no right to use its copyrighted and trademarked material without permission, and that the NFT would harm the brand’s reputation and image.

The French court ultimately ruled in favor of Hermès, stating that the defendants had infringed on the brand’s intellectual property rights. The court ordered the defendants to pay €100,000 in damages to the company.

The ruling is significant as it sends a message to the NFT community that brands are willing to take legal action to protect their intellectual property rights. It also highlights the potential legal consequences for those who use copyrighted or trademarked material in NFTs without permission.

The NFT space has exploded in popularity in recent years, with millions of dollars being spent on unique digital assets. However, the use of copyrighted or trademarked material in NFTs without permission has become a growing concern for rights holders.

As NFTs become more mainstream, it is increasingly important for individuals and entities to understand the potential legal consequences of using copyrighted or trademarked material in their creations. Brands like Hermès are taking notice of this issue and are prepared to take legal action to protect their intellectual property rights.

The Hermès lawsuit is just one example of a growing trend of legal action being taken by rights holders in the NFT space. In 2022, musician Grimes was sued for selling NFTs that included copyrighted images of characters from the video game Warframe. The NFTs were removed from sale, and Grimes ultimately settled the lawsuit for an undisclosed amount.

Similarly, in 2021, artist Richard Prince was sued for creating and selling NFTs that included images of Instagram posts without permission from the original creators. The lawsuit is ongoing, and highlights the potential legal complexities of using social media content in NFTs.

The Hermès lawsuit also raises questions about the nature of NFTs as a form of art and whether they are protected under the right to freedom of expression. While NFTs are often created and sold as works of art, their legality is still being debated in courts around the world.

In the Hermès case, the court ruled that the Birkins NFT was not protected under the right to freedom of expression, as it was an unauthorized reproduction of the brand’s intellectual property. However, the question of whether NFTs are protected under the right to freedom of expression is still an open one.

The Hermès lawsuit is a reminder of the importance of respecting intellectual property rights in the NFT space.