In major legal news, today a federal court in Manhattan determined that the NFT artist Mason Rothschild is liable for trademark infringement after using the famed Birkin handbag name and physical attributes (owned by luxury powerhouse Hermès) in his non-fungible tokens (NFTs).

The jury deliberated over three days, but eventually settled on a verdict of liability for trademark infringement, trademark dilution, and unlawful cybersquatting on the MetaBirkins.com domain name. They awarded Hermès the $110,000 of profits from Rothschild's sale of the NFTs and $23,000 in damages for cybersquatting. 

This is a major win for Hermès and for trademark owners. While this case is only one data point on the ever-evolving Web3 landscape, it certainly provides brand owners a sigh of relief, while hopefully giving artists pause as they consider their work in the metaverse. 

We'll be keeping eye on whether this case is appealed and whether more litigation ensues as brand owners seek to enforce their rights in a similar fashion.