As blockchain technology evolves rapidly, a significant advancement named Non-fungible token (NFT) has been rising since 2021. In this world where we are experiencing digital shifts every year, tokenizing our assets has become the new trend nowadays.
Whenever we create, invent, or own any intellectual property, we try to protect them from infringement by others. However, about the NFTs and their ownership? Does intellectual property protection, such as copyrights, patents, and trademarks, apply to NFTs? Yes, they do. Let us look at how we can safeguard our NFTs using copyright protection and the confusion associated with it in this article.
Know about NFT and Copyrights
NFTs (Non-fungible tokens) are digital units that represent the metadata of anything. An NFT can depict digital goods such as images, memes, videos, animations, or even physical products such as clothes, footwear, etc. Any product you wish can be converted into an NFT and traded. These NFTs are stored in the blockchain like cryptocurrencies. The only difference is that cryptocurrencies are fungible, and NFTs are non-fungible, meaning unique and unchangeable. To tokenize (creating NFTs), you should digitally represent your products or creations.
Since NFTs are stored in the blockchain, they have little to do with copyrights. However, tokenized products or creations under NFTs can be copyrighted. One primary benefit of NFTs is that the information about the tokenized products and their owners is securely recorded under the blockchain. Copyrights protect one’s ownership and rights of his creation, but an NFT is not an actual product itself. It is a digital representation of the work. This is where the confusion arises.
Copyright Issues with the NFTs
An Author or Inventor of a creation is the one who owns it. The copyrights registered for that creation protect the owner’s exclusive rights and prevent others from infringing them. Some parties believe that only the owner of the creation can tokenize them, and anyone else trying to do the same will lead to copyright infringement.
However, some may consider that the NFTs only digitally represent the work. People other than the owners trying to tokenize them will not result in copyright infringement because NFTs are just the metadata of creation, not the creation itself. Since tokenizing the work does not intrude on exclusive rights such as publication, reproduction, authorization, etc., tokenization is believed to not cause copyright infringement.
In addition, NFTs are sold and bought using cryptocurrencies, and the person who buys an NFT is buying only the metadata of a work and not the actual work and its rights.
Get help from brealant professionals in creating the agreement!
Buying and selling NFTs refers only to the metadata in most cases. However, in some cases, the transfer of the copyrights takes place. In such circumstances, a separate agreement will be made between the buyer and seller listing all the copyright information. Our experts are always available for your help. You will get guidance in every step. Contact us and get things done correctly.
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