Can I Copyright an NFT?

NFTs, short for non-fungible tokens, are the latest craze in the world of digital assets and cryptocurrencies. NFTs are unique digital certificates of ownership that represent a digital asset, such as art, music, or memes. NFTs are created and stored on a blockchain, a distributed ledger that records transactions and ensures their security and authenticity. But what are the legal implications of NFTs, especially when it comes to intellectual property rights? Do NFTs grant any copyright protection to the creators or buyers of the digital assets? Read on and reach out to a seasoned New Orleans, Louisiana copyright lawyer to learn more about whether NFTs are copyrightable and how an attorney can help protect your intellectual property.

How do I know if I can copyright an NFT?

One of the primary sources of perplexity around NFTs is the differentiation between possessing an NFT and possessing the underlying work. Possessing an NFT does not automatically confer the copyright of the original work. To utilize the work for commercial purposes, the purchaser of the NFT needs to get permission from the creator or the owner of the work.

Some NFT platforms enable creators to transfer copyright permissions in the NFT metadata. However, this may not be legally binding or enforceable in all jurisdictions. Moreover, some platforms may not display or preserve the metadata properly, resulting in potential disputes.

Therefore, although you can copyright an NFT, it is imperative for both purchasers and sellers of NFTs to understand what rights they are acquiring or transferring when they engage in an NFT transaction. They should also meticulously read and comply with the terms and conditions of the platform they are using.

How can NFTs infringe on existing intellectual property rights?

One issue commonly associated with NFT IP is the potential for infringing on the existing IP rights of third parties. For example, if you create an NFT of a work that you don’t own or have explicit permission to use, such as a photograph or a painting, you may face an infringement lawsuit from the property’s original creator. Similarly, if you buy an NFT of a work that you didn’t create and then use or display the work without the original creator’s permission, the original creator may also sue you for infringement. This can happen even if you didn’t realize you were infringing on their IP or were simply relying on the platform’s verification process.

Therefore, it is prudent for both creators and buyers of NFTs to conduct due diligence before creating or purchasing an NFT. They should also contemplate obtaining IP insurance or indemnification clauses to safeguard themselves from potential claims.

Why do I need an IP lawyer to protect my NFT?

The NFT landscape isn’t as straightforward as it may appear, and navigating intellectual property issues dealing with NFTs requires professional guidance and advice. An IP lawyer can help you:

• Understand your rights and obligations when creating or buying an NFT
• Draft and negotiate contracts and licenses for your NFT transactions
• Register and enforce your IP rights in your NFTs

Although NFTs are a new and exciting way to create and collect digital assets, they also come with legal implications that you should not ignore. Contact Lemler IP today to learn more about how you can secure your NFT intellectual property.