NFT’s are the non-fungible tokens that suddenly grabbed attention, attracted art lovers, and impacted traditional Intellectual Property Rights. The art piece is a valuable asset to any art lover but did we ever think that someday piece of art would go digital? Non-fungible tokens are digital assets that came into existence around 2012-2013, namely coloured coins. It is a digital asset that includes various artwork like Real estate, digital art etc.
Detail Description: Every NFT has a unique blockchain to avoid fake non-fungible tokens in the digital world. The person who buys the NFT’s from the seller/owner gets a unique form of cryptographically signed receipt that authenticates the buyer about the unique form of work. Categorically NFT’s includes the following:
- Videos and sports highlights;
- Designer sneakers;
- Virtual avatars and video game skins;
- Finest instance of NFT’s can be put in this way for easy understanding. Instead of getting an actual painting to hang on the wall, the buyer receives a digital file instead. The buyer also gets exclusive ownership rights.
Applicability and Scope: Intellectual property involves the creations of the mind, ranging from literary and artistic works to designs, symbols, and even names. These fruits of mental labour can be regulated and protected under legal frameworks, known as intellectual property rights or IP rights. Exclusive rights and monopolies are at the heart of the intellectual property.
There will be an Impact of IP laws on NFT’s. Since NFT’s deals with artwork, crucial to understand how it affects one’s intellectual property rights. IP Owners are struggling to protect their IP rights from infringers in the digital world. There are a few misconceptions in buying the NFT’s that the NFT’s gives the creator’s exclusive rights to the NFT’s purchaser, which is entirely false. If the IP owner transfers the ownership of the license to NFT’s purchaser, in that case, the NFT’s owner can enjoy absolute rights over it. NFT’s do not come with IP rights, and it depends upon the circumstance of the transfer.
In the case of copyrights, the owner has numerous rights, inclusive of reproduction, modification, under Section 14 of the Indian Copyrights act 1957. The NFT’s purchaser gets a copy of the underlying work in digital format and NFT’s itself. Any unauthorized reproduction, distribution of NFT’s can lead to infringement. The decentralized nature and immutability of blockchain technology help to identify the infringer.
In the case of Trademarks, many brands are purchasing blockchain NFT’s technology to create an authentification system for their customers.
For example, big brands like Louis Vuitton, Dom Perigon are using Aura blockchain to trace the authenticity of their brands.
In the case of Patents, Patents allow an NFT’s blockchain owner to license their technologies. For example, Nike owns a patent to generate digital cryptographic assets for footwear, which helps the customers assure the originality of the purchased product.
Renowned Example of NFT’s: Bollywood Superstar Amitabh Bachchan’s non-fungible token (NFT) collections of ‘Madhushala‘, autographed posters and collectibles, have received bids close to $1 million at the end of auction. The auction, which was organized by Beyond life. The club opened on 1 November and closed on 4 November. It is powered by Guardian Link, one of India’s biggest decentralized branded marketplaces for NFTs. The auction, organized by Beyond life Club, opened on 1 November and closed on 4 November. It is powered by Guardian Link, one of India’s biggest decentralized branded marketplaces for NFTs.
Conclusion: NFT’s are in their initial stage, where there is no regulatory body that monitors pricing and transaction. There is so much confusion on the authenticity of the NFT’s even though it has immunized blockchain technology. Presently, they are not governed by any law at the moment in India. And there are chances for digital thefts too. These are a few things to look upon that need to be safeguarded.
Disclaimer: The present article intends to provide general guidance on the subject, and you can also consult us in your specific case.