U.S. Trademark and Copyright Offices to study the IP impact of NFTs

As non-fungible tokens (NFTs) continue to attract interest, the U.S. Patent and Trademark Office and the U.S. Copyright Office are set to begin a study of their impact on intellectual property rights.

The survey of NFTs comes after a request from Senators Patrick Leahy and Thom Tillis in June for a deep dive into the potential consequences the budding asset class may have in relation to intellectual property rights.

The two departments have agreed to carry out the study in correspondence with Leahy and Tillis, and to carry out preliminary discussions to prepare an action plan that will include consultations with various stakeholders who are well versed in the NFT landscape.

A wide range of topics will be considered that were originally addressed by the senators from Vermont and North Carolina. This includes potential intellectual property challenges with future applications of NFTs, the rights associated with the transfer of ownership to an NFT, licensing rights and infringements, and potential IP rights granted to NFT creators.

Cointelegraph has contacted both departments to find out how long the study will take to complete, the scope of its coverage and which industry stakeholders will be consulted. They did not respond immediately.

Related: “Wave of litigation” to hit NFT spot as copyright issues abound

The NFT site has already caused a great deal of controversy for companies that have seen their products or intellectual property infringed in recent months. A number of high-profile brands have applied for legal action against NFT marketplaces and platforms that may have violated associated IP rights.

The global sportswear brand Nike made headlines in February when it filed a lawsuit against online retailer StockX for infringing on its brand through the sale of unlicensed sneakers NFTs. The company had sold Nike NFT sneakers that were to include redeemable, real-world versions of the shoes.

American rapper Lil Yachty is fighting his own legal battle in California, after filing a trademark lawsuit against two music companies. The 24-year-old claimed that the companies used his identity and name to raise more than $ 6.5 million in venture capital to bankroll the launch of a collection of NFTs.

The production company Miramax also went the legal route in November 2021 after the critically acclaimed film director Quentin Tarantino seemed to launch NFTs taken from his major film from 1994 Pulp Fiction. The studio claimed that Tarantino infringed copyright when he set out to launch an NFT collection of seven uncut script scenes, exclusive commentary and original handwritten scripts.