Hermés International S.A. filed a lawsuit for intellectual property claims after artist Mason Rothschild created and sold the popular MetaBirkins non-fungible tokens or NFTs. The French luxury design house said the digital collectible confused customers thus it has violated its trademark rights.

The case is over and Hermés won the legal battle after the Manhattan federal jury determined that Mason Rothschild’s MetaBirkins NFT bags indeed violated the fashion house’s trademark. They said that the artist’s unauthorized digital collectible bags are likely to confuse customers.

As per CNN News, the jury at the US District Court for the Southern District of New York granted Hermés some $133,000 as damage compensation for the trademark infringement, cybersquatting, and dilution. The compensation was confirmed this week.

In response to the court decision, Rhett Millsaps, Rothschild's lawyer, commented that the result was a "terrible day for artists and the First Amendment." It was noted that this case is being watched closely as the outcome can potentially clear up how trademark law applies to NFTs which are digital assets set on blockchain networks.

The design involved in this case is Hermés’ famous leather Birkin handbags that cost a lot, usually tens of thousands of dollars each. In the United States alone, the luxury brand already sold more than $1 billion worth of the prized Birkins. Court documents also show that in the last 10 years, it has sold over $100 million worth of these handbags.

In any case, Rothschild was said to have sold 100 MetaBirkins NFTs associated with images showing the bags in colorful fur covers. Hermés said in its suit that the artist is a "digital speculator" and described his NFT project as a "get rich quick" scheme.

He started to offer his MetaBirkins NFT at the Art Basel art fair that was held in Miami in December 2021. Reportedly, he sold more than $1 million worth of the digital collectible.

Meanwhile, The New York Times reported that the result of the case goes beyond Hermès. This is because it examines the nature of digital assets sold on the blockchain and there is a discussion is NFTs are purely commodities or they are types of art protected by the First Amendment.

In the lawsuit, the jury said the MetaBirkins are more similar to commodities so they are also under the strict trademark laws that prevent copying of products. Then again, some think that Rothschild’s defeat was a big blow to the NFT market.

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