A New York federal court has ruled that NFT versions of French fashion house Hermès' famous Birkin handbag design violate US trademark law. Artist Mason Rothschild was ordered to pay $133,000 in damages for the unauthorized use of the design. Rothschild's lawyer called the outcome a "terrible day for artists and the First Amendment". Hermès had sued Rothschild last year over its "MetaBirkins," 100 NFTs featuring images of bags with colorful fur. According to the fashion house, Rothschild was a "digital speculator" and the NFTs a scheme to get rich quick. The case has far-reaching effects for trademarking NFTs, which are used on blockchain networks to verify ownership of digital art. Hermès also claims that Rothschild's NFTs interfered with its own plans for NFTs that the company wanted to implement. Rothschild argued that his work was an absurdist statement about luxury goods and was immune from suit because of the First Amendment's protection of art.