JAKARTA - Manhattan Federal Judge on Friday provided Hermes' request to permanently stop selling "MetaBirkin" non-fungible tokens (NFTs) by artist Mason Rothschild following a jury ruling that the sale violated French luxury fashion home brand Birkin's rights.
US District Judge Jed Rakoff said the permanent conjunction was justified because Rothschild's constant marketing of NFT is likely to confuse consumers and permanently harm the company.
Rakoff rejected Rothschild's request to cancel the jury's decision or hold a new trial.
"The overall scheme of the defendants here is to deceive consumers by making them believe, through their use of the Hermes brand variety, that Hermes supports NFT MetaBirkins which is beneficial for the defendant," said Rakoff. "No one is protected by the First Amendment to free him from responsibility for such schemes."
Representatives from Hermes and Rothschild did not immediately respond to requests for comment on this decision.
NFT is a unique token in blockchain networks that is often used to verify digital art ownership. Hermes sued Rothschild last year regarding its MetaBirkins, 100 NFTs associated with images depicting a high-value Birkin handbag covered in colorful fur.
Hermes calls Rothschild a "digital speculator" and its NFT a "rich fast" scheme that violates their "Birkin" trademark and creates the false impression that the fashion house supports the token.
Rothschild, whose real name is Sonny Estival, responded that the works were an absurd statement about luxury goods and were not hit by a lawsuit based on protection in the First Amendment to the United States Constitution for art that uses trademarks in a relevant artistic way without misleading consumers explicitly.
Juri memutuskan untuk kepentingan Hermes pada bulan Februari dan memberikan perusahaan tersebut santu rugi sebesar 133,000 dolar AS (Rp2 miliar).
Hermes said in a March filing that Rothschild continued marketing its NFT after the jury's ruling. The company asked the court to force Rothschild to stop the sale, hand over the tokens she still has, and disclose post-decision profits.
Rothschild told the court that Hermes' request exceeded the appropriate limits in cases like this involving artistic expressions.
Rakoff mostly granted Hermes' request, but decided not to order Rothschild to transfer the token as a "preventive measure" over First Amendment considerations.
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