Lawyer Monthly - November 2021 Edition

70 WWW.LAWYER-MONTHLY.COM | NOV 2021 INTELLECTUAL PROPERTY - WHAT IP CHALLENGES DO NFTS FACE? In layman’s terms, what is a non-fungible token (NFT)? An NFT is a unique crypto token represented on a distributed ledger (blockchain). This technology allows the tracking of ownership and transaction history of each NFT with absolute certainty and finality. Unlike other crypto tokens which are interchangeable (i.e. fungible), NFTs are non-fungible, with each token assigned a token ID and distinctive metadata associated with it. It can be seen as a certificate of ownership which can be linked to intangible digital assets such as digital art or media, but also to real world physical assets as well. As a relatively new form of digital media, how far is the creation and trading of NFTs covered by existing IP law? While the technology of blockchains and tokens is rapidly evolving, the What IP Challenges DO NFT S FACE? A new type of asset that took off in early 2021, NFTs have garnered attention from investors for using blockchain technology to provide proof of ownership for digital art. However, the NFT space poses a number of obstacles for IP holders, including the question of who has the right to “mint” and sell NFTs based on existing properties. Addison Liu from Film & Ink Law Group explores this issue and others below.