{"id":40677,"date":"2023-03-14T12:00:00","date_gmt":"2023-03-14T16:00:00","guid":{"rendered":"https:\/\/www.iposgoode.ca\/?p=40677"},"modified":"2023-03-14T12:00:00","modified_gmt":"2023-03-14T16:00:00","slug":"bad-day-for-artists-updates-to-the-hermes-v-rothschild-dispute","status":"publish","type":"post","link":"https:\/\/www.yorku.ca\/osgoode\/iposgoode\/2023\/03\/14\/bad-day-for-artists-updates-to-the-hermes-v-rothschild-dispute\/","title":{"rendered":"Bad Day For Artists! Updates To The Herm\u00e8s v Rothschild Dispute"},"content":{"rendered":"\n<hr \/>\n<p><em><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-39558 alignleft\" src=\"https:\/\/www.iposgoode.ca\/wp-content\/uploads\/2022\/05\/Anita-Gogia.jpeg\" alt=\"\" width=\"75\" height=\"56\" \/>Anita Gogia is a IPilogue Writer and a 2L JD Candidate at Osgoode Hall Law School.<\/em><\/p>\n<hr \/>\n<p>On <a href=\"https:\/\/www.shutts.com\/assets\/htmldocuments\/Hermes%20Verdict.pdf\">February 8 2023, a nine-person jury delivered a verdict<\/a> <a href=\"https:\/\/www.jdsupra.com\/legalnews\/jury-finds-that-metabirkin-nfts-4328250\/\">after three days of deliberation<\/a> on the intriguing <a href=\"https:\/\/fingfx.thomsonreuters.com\/gfx\/legaldocs\/zjvqkmgnxvx\/IP%20HERMES%20TRADEMARKS%20complaint.pdf\"><em>Herm\u00e8s v Rothschild<\/em><\/a> case. <a href=\"https:\/\/fingfx.thomsonreuters.com\/gfx\/legaldocs\/zjvqkmgnxvx\/IP%20HERMES%20TRADEMARKS%20complaint.pdf\"><em>Rothschild<\/em><\/a> engages novel issues of trademark infringement, trademark dilution, and cybersquatting (MetaBirkin.com domain name in this case) by artists in the metaverse.<\/p>\n<p>Rothschild <a href=\"https:\/\/www.whitecase.com\/insight-our-thinking\/infringement-still-infringement-even-metaverse-new-york-jury-finds-metabirkin\">created 100 \u201cMetaBirkin\u201d NFTs in 2021<\/a> that depicted the Herm\u00e8s Birkin bag in digital fur instead of leather, seemingly <a href=\"https:\/\/www.whitecase.com\/insight-our-thinking\/infringement-still-infringement-even-metaverse-new-york-jury-finds-metabirkin\">commenting on the animal cruelty<\/a> present in luxury handbags. The NFTs were <a href=\"https:\/\/www.whitecase.com\/insight-our-thinking\/infringement-still-infringement-even-metaverse-new-york-jury-finds-metabirkin\">sold at a price of $450 each and recurring royalties<\/a> on every further sale. After Herm\u00e8s took down the NFTs from OpenSea, Rothschild moved to a different marketplace and <a href=\"https:\/\/www.whitecase.com\/insight-our-thinking\/infringement-still-infringement-even-metaverse-new-york-jury-finds-metabirkin\">continued to promote<\/a> \u201cMetaBirkin\u201d on Discord. Rothschild argued that \u201c<a href=\"https:\/\/www.jdsupra.com\/legalnews\/jury-finds-that-metabirkin-nfts-4328250\/\">art is art<\/a>\u201d and that the NFTs were a \u201c<a href=\"https:\/\/www.jdsupra.com\/legalnews\/jury-finds-that-metabirkin-nfts-4328250\/\">playful abstraction of an existing fashion-culture landmark<\/a>\u201d under First Amendment protection. Essentially, he argued that \u201cMetaBirkins\u201d were <a href=\"https:\/\/www.jdsupra.com\/legalnews\/jury-finds-that-metabirkin-nfts-4328250\/\">akin to selling physical art prints<\/a>.<\/p>\n<p>The jury found that Rothschild\u2019s \u201cMetaBirkin\u201d NFTs <a href=\"https:\/\/www.whitecase.com\/insight-our-thinking\/infringement-still-infringement-even-metaverse-new-york-jury-finds-metabirkin\">violate Herm\u00e8s\u2019 Trademark rights, was not shielded by the First Amendment, and awarded Herm\u00e8s $133,000 in damages<\/a>. The key issue was whether the \u201cMetaBirkin\u201d was artistic expression under First Amendment protection, or a commercial product that causes consumer confusion. The jury concluded that while artistic expression was present, Rothschild intended to confuse consumers.<\/p>\n<p>During the trial, Herm\u00e8s provided evidence of actual consumer confusion which included <a href=\"https:\/\/www.jdsupra.com\/legalnews\/jury-finds-that-metabirkin-nfts-4328250\/\">publications mistakenly linking \u201cMetaBirkins\u201d to Herm\u00e8s, and a study (commissioned by Herm\u00e8s) that found 18.7% of consumers were confused<\/a> about if \u201cMetaBirkins\u201d were connected to Herm\u00e8s. Rothschild rejected these claims by providing that he <a href=\"https:\/\/www.jdsupra.com\/legalnews\/jury-finds-that-metabirkin-nfts-4328250\/\">added a prominent disclaimer<\/a> to his website clarifying that the \u201cMetaBirkins\u201d were not connected with Herm\u00e8s in any way and that his <a href=\"https:\/\/www.jdsupra.com\/legalnews\/jury-finds-that-metabirkin-nfts-4328250\/\">publicist asked the publications to issue corrections<\/a>.<\/p>\n<p>The jury was also influenced by Judge Rakoff\u2019s reasons to deny the motion for summary judgment, and his exclusion of expert testimony. Judge Rakoff held that the <a href=\"https:\/\/law.justia.com\/cases\/federal\/district-courts\/FSupp\/695\/112\/2345732\/\"><em>Rogers v Grimaldi<\/em><\/a> test for artistic works applies where the key inquiry is <a href=\"https:\/\/www.whitecase.com\/insight-our-thinking\/infringement-still-infringement-even-metaverse-new-york-jury-finds-metabirkin\">whether the trademark was used to mislead the public.<\/a> This test was applied as opposed to the <a href=\"https:\/\/casetext.com\/case\/gruner-jahr-usa-pub-v-meredith-corp\"><em>Gruner + Jahr<\/em><\/a> test, <a href=\"https:\/\/www.jdsupra.com\/legalnews\/jury-finds-that-metabirkin-nfts-4328250\/\">which applies where no artistic work is involved<\/a>. Thus, Judge Rakoff held that the artistic relevance was present. Blake Gopnik provided expert testimony that Rothschild brought forth in this case. Had this been admitted, the jury <a href=\"https:\/\/www.whitecase.com\/insight-our-thinking\/infringement-still-infringement-even-metaverse-new-york-jury-finds-metabirkin\">would have heard that the \u201cMetaBirkin\u201d was akin to Andy Warhol\u2019s depictions of Campbell\u2019s Soup Cans<\/a>; thus aligning them in the artistic expression context.<\/p>\n<p>Following the decision, Rothschild\u2019s legal team <a href=\"https:\/\/www.jdsupra.com\/legalnews\/case-update-hermes-prevails-in-5333033\/\">claimed<\/a> that the dispute is \u201c<a href=\"https:\/\/www.jdsupra.com\/legalnews\/case-update-hermes-prevails-in-5333033\/\">far from over<\/a>.\u201d The team also pointed out Herm\u00e8s\u2019 hypocrisy as a luxury fashion brand who claim they care about artists but \u201c<a href=\"https:\/\/www.jdsupra.com\/legalnews\/case-update-hermes-prevails-in-5333033\/\">feel they have the right to choose what art is and who is an artist<\/a>.\u201d This case has been followed by many to observe how the court resolves the issue of NFTs using intellectual property for the purpose of artistic expression. It is unknown whether this decision stands as precedent since intellectual property right disputes are significantly context-based. After this decision, artists can only conclude for certain the importance of obtaining legal advice before using IP in their NFTs, even if it is in the name of artistic expression.<\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":2140,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","footnotes":""},"categories":[89,3,1047,60,62,75],"tags":[4500,2338,4562,51,52,4917,54,3730,4531,4851,56,4918],"class_list":["post-40677","post","type-post","status-publish","format-standard","hentry","category-arts","category-blogs","category-fashion-industry","category-ip","category-trademarks","category-trademarks-2","tag-anita-gogia","tag-artist","tag-expression","tag-fashion","tag-hermes-2","tag-metabirkin","tag-metaverse","tag-nft","tag-novelty","tag-rothschild","tag-trademarks","tag-update"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Bad Day For Artists! 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