As nonfungible tokens (NFTs) continue to gather interest, the United States Patent and Trademark Office and U.S. Copyright Office are set to launch a study into their impact on intellectual property rights.
The examination of NFTs comes after an appeal from senators Patrick Leahy and Thom Tillis in June for a deep dive into the potential consequences the growing asset class could have in regard to intellectual property rights.
The two departments have agreed to conduct the study in communication with Leahy and Tillis, leading preliminary discussions to plot a plan of action which will include consultations with various stakeholders well-versed in the NFT landscape.
A broad range of issues will be considered that were initially raised by the Vermont and North Carolina senators. This includes potential intellectual property challenges with future applications of NFTs, the rights associated with transferring ownership of an NFT, licensing rights and infringements, and the potential IP rights given to NFT creators.
Cointelegraph has reached out to both departments to discover how long the study will take to be completed, the possibility of its coverage, and which industry stakeholders will be consulted. Though they did not immediately respond.
The NFT space has already caused plenty of conflict for companies that have seen their products or intellectual property trespassed upon in recent months. A number of high-profile brands have sought a legal remedy against NFT marketplaces and platforms that may have infringed on associated IP rights.
Global sportswear brand Nike was in the headlines in February as it instituted court proceedings against online reseller StockX for infringing on its trademark through the sale of unlicensed sneaker NFTs. The company had sold Nike NFT sneakers which were set to include exchangeable, real-world versions of the shoes.
American rapper Lil Yachty is fighting his own legal battle in California, after filing a trademark violation lawsuit against two music companies. The 24-year-old claimed the firms used his likeness and name to raise more than $6.5 million in venture capital to bankroll the launch of a collection of NFTs.
Production company Miramax also went for a lawsuit in November last year after critically-acclaimed film director Quentin Tarantino looked to launch NFTs derived from his blockbuster 1994 film Pulp Fiction. The studio demanded Tarantino infringe on copyrights as he set out to launch an NFT collection featuring seven uncut screenplay scenes, restricted commentary and original handwritten scripts.
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