Mason Rothschild‘s 100 ‘Metabirkins’ NFTs are not considered artistic commentary, and as such are not protected by the First Amendment of the US Constitution, according to a jury verdict in a case in the Southern District of New York today.
The conflict, which pitted Web3 experiments and digital products against traditional luxury fashion, began in August 2021, and the trial is the resolution of that conflict.
In 2021, Los Angeles-based Rothschild issued 100 digital ‘Metabirkin’ NFTs, turning the renowned leather handbag from Hermès into a virtual collectible.
In January 2022, the luxury brand filed a lawsuit, alleging that the Birkin-like images and related NFTs violate its trademark rights. It was revealed in testimony that the project also got in the way of its own plans to release NFTs.
According to Rothschild, the First Amendment of the US Constitution protects the works as artistic commentary.
The relationship between digital art, NFTs, and the physical fashion it imitates is being addressed for the first time in this ruling. Rothschild asserted that there is no such thing as a digital twin, while Hermès claimed that NFTs represent a brand-new product category.
Thus, this decision supports the value of digital goods and NFTs, indicating that even digital representations of luxury goods have value even if they don’t serve the original purpose of, for example, carrying one’s belongings or dressing one’s physical body.
In this instance, this conveys that a luxury handbag’s function, whether it be in the real world or in metaverse spaces, is just as much about cultural status. For Web3 brands and developers looking to charge premium prices for digital goods, this may be advantageous.
On February 8, the third day of deliberations, the nine-member jury found Rothschild responsible for trademark infringement, trademark dilution, and “cybersquatting” (the practise of using a name improperly with the intent to profit from it).
Hermès was awarded $133,000 in total damages (an estimate that at least includes the sum he is believed to have made from the works).
Judge Jed Rakoff chose not to respond to the decision right away in the media. Following the verdict, a spokesperson for Rothschild said he was drafting a statement.
A request for comment from Hermès was not answered. Experts anticipate that Rothschild will challenge the ruling, and some believe that if he does, the matter may ultimately end up before the Supreme Court.
Let’s have a look at Rothschild’s ‘Metabirkins’ below!
#Peace.Love.Metabirkins
