The non-fungible token () bubble burst technology/2023/sep/22/nfts-worthless-price” rel=”nofollow noopener” target=”_blank” data-ylk=”slk:quite some time ago;cpos:2;pos:1;elm:context_link;itc:0;sec:content-canvas” class=”link “>but the United States Government has just examining the surrounding legal framework. The study, conducted jointly by the US Copyright Office (USCO) and the Patent and Trademark Office (USPTO) following a Senate request in 2022, determined that current intellectual property laws are the strong enough to address copyright or trademark infringement in NFTs. The agencies also determined that while tokens have some benefits, “trademark infringement and misuse are prevalent in nft markets.”
As a reminder, conferring ownership of a collectible, such as a work of art or a piece of music. It's effectively a verified link to a medium that may or may not live on the blockchain, but whoever owns the target URL of an nft can change the medium it points to at any time. Signal founder Moxie Marlinspike created an nft that he promised would look like a poop emoji when someone bought it.
The offices noted that NFTs and associated smart contracts can help brand owners manage, license and transfer intellectual property rights. Those who weighed in on the issue in public comments noted that NFTs can also help artists make money from future sales of their work. That is not inherently bad, even if a large part of nft art is butt-ugly;cpos:6;pos:1;elm:context_link;itc:0;sec:content-canvas” class=”link “>.
However, nft-study/Joint-USPTO-USCO-Report-on-NFTs-and-Intellectual-Property.pdf” rel=”nofollow noopener” target=”_blank” data-ylk=”slk:the study;cpos:7;pos:1;elm:context_link;itc:0;sec:content-canvas” class=”link “> noted “a widespread concern that nft buyers and sellers are unaware of what intellectual property rights are involved in the creation, marketing, and transfer of NFTs and that NFTs may be used to facilitate copyright or trademark infringement.”
The report notes that the decentralized nature of NFTs and blockchain networks complicates any attempt to enforce trademarks. “While some individual nft platforms have developed protocols to help brand owners enforce their rights, there is no centralized authority requiring all platforms to do so,” the report reads. “There are also no cross-platform mechanisms that allow brand owners to identify and remove infringing content, resolve trademark-related disputes involving blockchain-based domain names, or confirm that sellers own the trademark rights associated with the assets they offer.” .
With all that in mind, the offices said that educating the public about NFTs could help ensure better understanding and awareness of the tokens and how they work. Still, they recommended in their report to Congress that the current use of NFTs does not require changes to current intellectual property laws. They also noted that “incorporating NFTs into your registration and registration practices is neither necessary nor advisable at this time.” In other words, they don't think they should have to.
