20.04.2024

Is it worth investing in NFT tokens? Legal aspects of copyright law

We often see the phrase that blockchain-based NFTs provide 100% ownership. However, there are certain problems behind this phrase, so let’s list some of them.

The main intellectual property issues with NFT are related to copyright law. The fact is that its application in the world of software and cryptocurrency is rather ambiguous.

Who actually owns the copyright of a work – creator, NFT buyer, after-resale buyer, platform, platforms, smart contracts?

Of course, one could say that ownership is determined and regulated by a smart contract, but will it be recognized in all jurisdictions in which blockchain exists? Have the requirements of various copyright treaties been taken into account?

What about situations with multiple creators, especially if they disagree on how the work should be used?

What about «moral rights»? Is this question on the agenda of the NFT community, do they know about these rights, which are so important in Europe?

What should you do if things don’t go according to plan? Usually, in various disputes, people go to court, but in this case it is difficult to determine who will be the defendant – the platform, artists or buyers.

Let’s not forget that in the case of copyright, a third-party copyright holder can designate their claims, so I wonder if the platforms themselves have foreseen this issue?

Copyright is not the only issue for NFT, there is also a trademark issue.

Trademarks are believed to be for consumer protection. If you have an NFT that uses a brand / slogan, then what are the risks and who should be ultimately responsible?

Unfortunately, NFT is such a new phenomenon that there are simply no answers to these questions, but it is important to ask yourself before making an expensive newfangled acquisition associated with legal risks.

Leave a Reply

Your email address will not be published. Required fields are marked *