Last Updated: January 7, 2022

Equa Global Defines NFTs and Intellectual Property Rights

Only Using Non-Copyright Infringement NFTs:

We have all heard of intellectual property rights infringements on knockoffs or logos. The same can be true for NFTs. An NFT you are seeing may have been created off a third party’s work and then sold by a separate creator.

With NFTs, it is usually uncertain of the originality for this reason. This can be an issue for people buying or selling NFTs because they are liable for the backlash or legal actions against copyright if they are in possession of the NFT. There is no current authorization process for NFTs and their original holder.

Ownership Rights of NFTs:

NFTs are one-of-a-kind digital documentation (art or others). Buying an NFT gives the buyer sole ownership of it. This makes it much like collecting art or other rare collectibles. Ownership rights are connected to all NFTs and are something buyers need to be aware of. This is to avoid breaking copyright or intellectual property infringements.

NFT ownership can be limited depending on the creator's rights. For example, you can own an NFT, and the unique one, but you may not have the right to reproduce or use it for certain opportunities such as a logo or advertising.

Shared Ownership and Ownership Usage Rights:

NFTs can be bought and sold many times once they leave the creator’s wallet. Creators can write statements into the copyright to ensure they profit from each time their NFT is sold. These are called royalties and should be clearly stated to both parties before transactions. T

There is a difference between an NFT owner (creator) and a copyrights owner. The NFT owner can dictate how the right of the NFT translate to the copyright owner. For example, the copyright holder can have the ability to hold the NFL but not produce, distribute, or share the original work.

 

For more information check out Equa's other blogs.