Are brands protected in the metaverse? Hermès and NFT artist spar in US court

Luxury retailer and creator of Birkin bag says Mason Rothschild’s MetaBirkin project has simply ripped it off and reaped the profits

Pictures of 100 Birkin bags covered in shaggy, multi-colored fur have become the focus of a court dispute that will decide how digital artists can depict commercial activities in their art and cast new light on whether brands are protected in the metaverse.

In the case, being heard this week in a New York federal courtroom, the luxury handbag maker Hermès is challenging an artist who sells the futuristic digital works known as NFTs or non-fungible tokens.

Artist and entrepreneur Mason Rothschild created images of the astonishingly expensive Hermès handbag, the Birkin, digitally covered the bags in fur and turned the pictures into an “art project”, which he called MetaBirkin. Then he sold editions of the images online for total earnings of more than $1m, according to court records.

Hermès promptly sued, claiming the artist was simply “a digital speculator who is seeking to get rich quick by appropriating” the Hermès brand.

The “Metabirkins brand simply rips off Hermès’s famous Birkin trademark by adding the generic prefix “meta”, read the original complaint filed by Hermès in January last year, noting that the “meta” in the name refers to the digital metaverse now being pumped by technology innovators as the next big thing in tech profit-making.

Rothschild, whose real name is Sonny Estival, countered that he has a first amendment right to depict the hard-to-buy, French handbags in his artwork, just as Andy Warhol portrayed a giant Campbell’s soup cans in his famous pop culture silk screens.

“I’m not creating or selling fake Birkin bags. I’m creating art works that depict imaginary, fur-covered Birkin bags,” said Rothschild in a letter to the community after the case was filed. “The fact that I sell the art using NFTs doesn’t change the fact that it’s art.”

Many in the fashion industry have expressed interest in getting into the metaverse, where brands might make money selling digital clothing and accessories that can be worn and traded by electronic avatars.

“It will be a very meaningful case for the fashion industry,” said Michelle Cooke, a partner at the law firm Arentfox Schiff LLP, who advises brands on these types of trademark issues, but was not involved in this case.

“Their ability to control their brands in these digital spaces as much as they do in the real world will have significant implications about how much money they put into these new environments and how they enforce and protect their rights,” she said.

But, Cooke said, the case will, conversely, have big implications for a new generation of digital artists, in deciding how they can depict commercial activities in their art.

“We have a new wave of digital artists coming into existence and the benefit of an NFT is that it allows them to track and monetize their art in ways that they weren’t able to do before,” said Cooke, adding there may need to be new lines drawn as to how artists can pull from the commercial world to make an artistic statement. “So there’s tension.”

One hurdle that Hermès will have to overcome in the case is the fact that US trademark law requires brands to register their trademarks for each specific type of use, so digital sales might require a separate registration.

In the end, Cooke said the decision might come down to whether the jury believes Rothschild did the MetaBirkin project as an artistic project “or was it a money-making venture that he cast as an artistic project when he got into trouble”.

But she said, no matter the conclusion, the case was of such importance that it was likely to be a subject of argument for years to come.

“I will be shocked and amazed if it isn’t appealed,” she said.

Contributor

Erin McCormick

The GuardianTramp

Related Content

Article image
Jury rules artist’s NFTs of ‘MetaBirkins’ violate Hermès’ trademark rights
New York jury rules against Mason Rothschild for selling digital copycat versions of the fashion house’s famous bags

Erin McCormick

09, Feb, 2023 @12:18 AM

Article image
Hermès and LVMH 'handbag war' escalates
Luxury brands come before French stock-market regulator in dispute over Bernard Arnault's stake in Hermès

Angelique Chrisafis in Paris

31, May, 2013 @4:52 PM

Article image
LVMH bags 17% stake in Hermès
Luxury goods empire insists £1.29bn purchase is not a prelude to a takeover bid

Andrew Clark

24, Oct, 2010 @9:17 AM

Article image
Hermès: rise of the quiet designer
You probably haven't heard of Nadège Vanhee-Cybulski, but the new artistic director of Hermès has an impressive CV, having worked at The Row and Céline. Lauren Cochrane explains why hiring a less-than-household name is a good thing

Lauren Cochrane

25, Jul, 2014 @1:08 PM

Article image
Hermès' artistic director leaves after four years
Lauren Cochrane: Christophe Lemaire, the artistic director of Hermes, has left the French fashion house after four years. Now, all eyes are on who will take over next

Lauren Cochrane

21, Jul, 2014 @11:33 AM

Article image
Hermès and Jane Birkin resolve spat over crocodile handbags
Actor withdrew name from product after Peta video showed cruelty at slaughter farm, which French luxury fashion house says was isolated incident

Angelique Chrisafis in Paris

11, Sep, 2015 @5:49 PM

Article image
LVMH's Bernard Arnault persists in his pursuit of Hermès
LVMH has built a 20.2% stake since October – but Hermès is unimpressed and has rebuffed Arnault's overtures

Tom Bawden

08, Mar, 2011 @9:03 PM

Article image
‘Paisley from Paisley’ enjoys resurgence with help from Hermès
Fashion partnership aims to reinvent the famous pattern and the town at the same time

Libby Brooks Scotland correspondent

15, Mar, 2019 @2:28 PM

Article image
Hermès promises improvement to goods after slow sales
French luxury brand blames distribution issues and depressed customer spending for slowest sales growth in recent years

Simon Neville

22, Apr, 2013 @7:03 PM

Article image
Topless dead ostrich protest at flagship store ruffles Hermès feathers
Half-naked activist with mock dead bird demonstrates against fashion brand’s use of ostrich leather after Peta exposé

Damien Gayle

31, Mar, 2016 @3:53 PM