Mini Checklist for NFT Trademarks

As the Non-Fungible token market grows in popularity with a growing number of people and businesses looking for methods to benefit from the hype. Some people try to cash in on the success of existing NFTs by producing knockoffs or parodies of them.?

Others decided to mint NFTs to supplement their existing intellectual property revenue (e.g., trademarks).

Miners should register their NFT trademarks with the United States Patent and Trademark Office to safeguard their NFTs and brands from exploitation ("USPTO"). In addition, to avoid charges of trademark infringement, new minters should familiarise themselves with federal trademark law and associated trademark rights.

DON'T Forget To Register Your NFT

Minters can file for trademark registration with the USPTO to protect the intellectual property rights associated with their NFTs. A trademark is any symbol, design, or combination of these things that identifies and differentiates the source from competitors in the marketplace.

Trademark owners have various rights under federal trademark law, including the authority to sue for infringement when third parties use their trademarks in ways that are likely to confuse customers about the origin of products or services.?

NFT owners who’ve successfully proven trademark infringement that can be recovered easily:

(1) actual damages,?

(2) the infringer's profits, and?

(3), in rare situations, attorney's fees, and costs.

Minters have registered their NFT logos under the USPTO to protect their brands. Bored Ape Yacht Club's (BAYC) registration of "Mutant Ape yachts" could help protect its brand from copycat designs.?

Third-party minters issued two NFT collections, PHAYC and Phunky Ape Yacht Club ("PAYC"), in December 2021. Both projects were soon removed from OpenSea, the largest NFT marketplace, for breaking its copyright infringement policies. If BAYC wants to pursue the subject separately (i.e., stop the sale of such NFTs), trademark law could be a powerful tool in its legal arsenal.

To safeguard the intellectual property rights associated with the NFTs, miners can apply for trademark registration with the USPTO.

DON'T Use Another's Trademark(s) in your NFT Project

Minters need to be cautious about using third-party trademarks in the minting and sale of their NFTs. If you want to use a third party's brand name, logo, and product to create your NFTs, obtain written permission first to do so.?

NFTs are so hot that even large entities like The New York Post, Mc Donald’s, and The NFL have minted and are planning to mint NFTs to incorporate and feature their respective trademarks.?

It is sensible for consumers to presume that NFTs comprising third-party trademarks are produced by such companies. If minters make NFTs that include third-party trademarks without proper permission, the relevant parties might sue them for trademark infringement.?

Where courts find that consumers would likely be confused about the source of NFTs, minters may be held liable for trademark infringement. They will be ordered to pay substantial damages to the trademark owner(s).

Due to the dangers mentioned above, NFT minters should get legal advice before relying on third-party intellectual property or registering and enforcing their own intellectual property rights.

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