NON - FUNGIBLE TOKENS

?? NFTs are digital assets containing unique identification codes that verify ownership. These digital assets range from art, music, and photos to collectibles like comic books, trading cards, and in-game items.

NFTs are unique digital assets authenticated using blockchain technology, which certifies their ownership and provenance.

Unlike cryptocurrencies such as Bitcoin or Ethereum, each NFT is distinct and cannot be exchanged on a one-to-one basis like regular currency.

?? Content Creation: Artists, musicians, writers, and other creators can tokenize their work as NFTs, effectively turning them into unique, collectible assets that can be bought, sold, and traded on various online marketplaces.

?? Intellectual Property Protection: When an artist or creator mints their work as an NFT, they embed ownership and licensing rights directly into the token. This blockchain-based authentication ensures that the creator retains control and receives royalties for subsequent sales or use of the work.

According to reports by Venable LLP in 2023; Revenues for non-fungible tokens (NFTs) are expected to grow over the next decade. With increasing NFT sales come contractual and intellectual property (IP) considerations for buyers and sellers, licensors and licensees, and IP owners within the NFT ecosystem.

Here are some comments by Venable:

? NFT Copyrights

An NFT is made up of encoded data on a blockchain. The token includes a unique identifier, a?smart contract, and, in many cases, some underlying content (e.g., an image, video, or audio file). Because unique programming code and content can fulfill the authorship, originality, and tangible medium requirements under copyright law, copyright protection may attach, most notably, to the underlying NFT content.

But note that in the case where NFT content is generated by artificial intelligence without any human intervention, such NFT content would not benefit from copyright protection because it would lack a human author, as the federal district court in DC?recently held.

? NFT Trademark Rights

In the NFT context, trademarks can be included in the underlying NFT content. For example, an NFT seller may incorporate their own or a third party's existing mark, logo, or brand into this content. So, if a mark is used in connection with the sale of an NFT, such use may well be grounds for obtaining trademark protection under the Lanham Act.

?? Sasha Silina in an article for the medium in 2023 clarifies that:

The future of decentralized IP, and IP x NFTs collab seems to be promising. Currently, it is a rapidly evolving space that holds great potential for scientists and creators alike. And as blockchain technology and NFTs become more mainstream, we are likely to see an explosion in the number and types of IP x Web3 projects.

Still, despite the benefits of NFTs in science and IP, there are issues and risks that need to be addressed. For example, the possibility of fraud and counterfeiting, and the lack of clear regulatory frameworks and legal precedents can make it difficult to enforce IP rights. Additionally, the technology is still relatively new and untested in the scientific community, so further research and experimentation are necessary to fully realize its potential.

Are you open to NFTs as a creator?

Much Love,

Analo Kanga ??