Have you heard about the big legal battle between luxury retailer Hermès and NFT designer Mason Rothschild? It’s been making waves in the fashion and tech world as the first big test of how trademark law applies to digital designs and NFTs.
So, here’s the scoop: Hermès is accusing Rothschild of infringing on its trademark by creating 100 digital “MetaBirkin” NFTs, which are furry versions of their iconic Birkin bag. But Rothschild is fighting back, saying that his MetaBirkens are a lawful and artistic interpretation of the brand’s product. Sound familiar? It’s kind of like when Andy Warhol made prints of Campbell’s soup cans.
And here’s the thing, NFTs have been a huge money maker for luxury brands. Dolce & Gabbana sold 9 NFTs for around $6 million in September 2021, and Gucci sold one short-film NFT for $25,000 two months prior. Although it’s not clear how much Rothschild made from his MetaBirkins, they were a hit at Art Basel in December 2021 and were sold for tens of thousands of dollars.
Now, even though the crypto market has cooled down a bit, Hermès is claiming that Rothschild took advantage of the NFT craze to make money off their brand. They say that consumers might mistakenly believe that the MetaBirkens are connected to their brand and they’re not cool with that. So, they asked the platform, OpenSea, to remove the collection, but copies continued to sell elsewhere.
This case could set a major precedent in this new area of digital designs and NFTs, but no matter who wins, the lawsuit itself may discourage other digital artists from featuring branded products in their designs. It’s a fascinating case and we’ll just have to wait and see how it all pans out. But we think it just goes to show how NFTs are changing the game and blurring the lines between art, fashion, and technology.
