US trademark and copyright offices to study intellectual property impacts of NFTs

As NFTs continue to gain traction, the United States Patent and Trademark Office and the US Copyright Office are preparing to launch a study into the implications of these NFTs on intellectual property rights.

The examination of NFTs follows a request in June by senators Patrick Leahy and Thom Tillis for a deep dive into the potential implications the emerging asset class could have for intellectual property rights. The two departments agreed to conduct the study, corresponding with Leahy and Tillis in preliminary discussions to create an action plan that would include consultations with various stakeholders knowledgeable on NFTs. Initially, a broad range of issues raised by the Vermont and North Carolina senators will be addressed. These issues include potential intellectual property challenges related to future applications of NFTs, rights, license rights and infringements related to the transfer of ownership of an NFT, and potential intellectual property rights granted to NFT creators. The NFT space has already caused a lot of contention in recent months for companies that have seen their products or intellectual property infringed. A number of high-profile brands have taken legal action against NFT marketplaces and platforms that may have infringed their respective intellectual property rights. Global sportswear brand Nike made headlines in February when it initiated court proceedings against online seller StockX for infringing its trademark by selling unlicensed sneaker NFTs. The company had sold Nike NFT sneakers that included redeemable, real-world versions of the shoes.