Sharon Urias, Reuters ; Trademark and copyright considerations for NFTs
"NFTs are mostly used to verify ownership of digital goods. An easy way to understand NFTs is to think of them as unalterable certificates of authenticity for digital goods. For example, if someone purchases a piece of digital art, the NFT acts to validate and verify ownership and authenticity of the artwork. In the "real world," the closest analogy is an autographed original painting that is authenticated by the artist's signature or a certificate of authenticity issued by a reputable source...
One common question asked by clients is whether, when they purchase NFTs, they also obtain the copyright associated with it. The answer is: Not necessarily. It is important to understand what is included in the smart contract that confers the purchaser's rights to the digital asset. Similar to the purchase of a physical painting in our analogy above, although the purchaser has acquired the right to display the work, and to resell it, ownership of the copyright is not automatically conveyed.
The artist owns the copyright unless the author assigns it to the purchaser...
NFTs present interesting and novel questions for trademarks as well...
One of the questions to be resolved is whether traditional trademark legal doctrines, such as the first-sale doctrine, protects a seller, such as StockX, or whether the NFTs are new, distinct products that seek to capitalize on the trademark owners' marks...
It is always challenging for the law to keep pace with the expansion and development of new technologies and innovations. It is no different with NFTs. With the increased growth of NFTs, the need for protection also grows. Although NFTs present many opportunities for businesses, it is essential that NFT sellers clearly delineate in the smart contract what is and is not permitted with respect to intellectual property rights. In that way, both NFT sellers and buyers will be able to protect themselves and best monetize these assets."
