The NFT boom of 2021 and early 2022 pushed digital assets into the mainstream, with activity on Ethereum driving a surge in high-value collections and speculative trading. Collections such as Bored Ape Yacht Club and CryptoPunks gained wide attention as NFTs moved beyond niche communities into broader financial and cultural relevance.
During this period, artist Mason Rothschild launched MetaBirkins, a collection of 100 NFTs inspired by the Birkin handbag associated with Hermès. The collection featured stylised, fur-covered digital handbags inspired by the Birkin design, which reportedly generated over $900,000 in sales shortly after launch, reflecting the pace at which NFT projects were gaining traction.
The project quickly drew attention, not just for its commercial success but also for its use of a well-known luxury brand name in a rapidly evolving digital market.
It was against this backdrop that Hermès filed a lawsuit in January 2022 in the U.S. District Court for the Southern District of New York, alleging trademark infringement, trademark dilution, and cybersquatting under the Lanham Act. The company argued that the use of the “Birkin” name in connection with NFTs could create a likelihood of consumer confusion and imply an unauthorised association, particularly in a category where luxury brands were beginning to establish a digital presence.
In response, Rothschild defended the project as artistic expression, arguing that the work functioned as digital commentary protected under the First Amendment, drawing comparisons to established pop art practices that reinterpret commercial imagery.
The dispute proceeded to a jury trial, making it one of the first major NFT-related trademark cases to be decided in court.
In February 2023, the jury ruled in favour of Hermès and awarded $133,000 in damages, including amounts linked to trademark infringement and cybersquatting. In June 2023, the court granted a permanent injunction, restricting further sale and promotion of the MetaBirkins NFTs. The jury concluded that the use of the Hermès trademark was likely to mislead consumers and that the NFTs functioned as a commercial product rather than purely expressive work.
The MetaBirkins NFTs were minted on Ethereum, where blockchain infrastructure enables verifiable ownership, transaction history and royalty mechanisms. The tokens were traded on platforms such as OpenSea. However, the case highlighted a key limitation. Ownership of a token recorded on a blockchain does not extend to rights over the intellectual property it references, and the court applied existing trademark law without modification.
The ruling has influenced how creators approach NFT projects involving recognisable brands or protected intellectual property. Projects that closely reference established trademarks now face greater legal scrutiny, particularly where there is a commercial element or risk of consumer confusion. In response, creators have increasingly shifted toward building original intellectual property or ensuring that references are clearly transformative.
At the same time, companies including Nike, Louis Vuitton, and Gucci have expanded trademark filings for digital goods, reflecting a more structured approach to brand protection in virtual environments.
The case highlights a broader shift in how intellectual property applies to blockchain-based assets. While Ethereum enables verifiable ownership of digital tokens, it does not override trademark protections tied to brands and commercial use. As NFTs expand into areas such as digital fashion and virtual goods, the distinction between token ownership and intellectual property rights is likely to remain central to how the ecosystem evolves.
