Behind the popularity of cryptocurrency came growing talks of something known as a non-fungible token (NFT). Essentially, an NFT is a unique digital asset that represents ownership of a specific item recorded on a blockchain, such as digital art, music, collectibles, and other creative works. And so, while a cryptocurrency is interchangeable, an NFT is one-of-a-kind and has a digital certificate of authenticity and ownership. This has created an entirely new market in this space, yet buyers and creators remain unsure how copyright laws apply, if at all. With that being said, please follow along to find out whether NFTs are copyrightable and how a proficient New Jersey copyright lawyer at The Ingber Law Firm can help you navigate the intellectual property statutes surrounding this complex asset.
What is the difference between owning an NFT and owning a copyright?
To reiterate, an NFT is a unique digital asset or token that is stored on a blockchain. However, in and of itself, it is not the creative work, but rather represents the original image, artwork, or file it links to. This is to say that an NFT is not automatically copyrightable, but the underlying asset may be. This is, of course, unless the owner of the underlying asset intentionally transfers these ownership rights to you. But at the end of the day, federal copyright law protects creative expressions of art, not the codes that function as proof of ownership over them.
How can the underlying digital art or file in an NFT be copyrightable?
Digital works, including those linked with NFTs, can receive copyright protection under federal copyright law. This is so long as this work is original, creative, and fixed in a tangible medium, such as a digital file. Obtaining this protection is almost always recommended for owners before their work is associated with an NFT drop or collaboration, so as to avoid ownership disputes in the future, or to exercise dominance when need be, should such a legal issue arise anyway.
If you are on the other side of this as a seller, you cannot upload or mint an NFT from someone else’s underlying digital art or file without likely being accused of copyright infringement. Then, as a buyer, you will receive a license to view, display, or resell your purchased NFT. However, this does not mean you are licensed to reproduce or commercially exploit the underlying digital art or file, as again, this will likely be deemed an infringement offense. When in doubt, just tell yourself that NFT licensing contracts do not trump federal copyright laws.
If this is what you are currently up against, do not try to put up a fight without the legal assistance of a talented Essex County, New Jersey intellectual property owner from The Ingber Law Firm. We urge you to retain our services as soon as possible.