Two U.S. senators recently wrote a letter to the U.S. Patent and Trademark Office (USPTO) and the U.S. Copyright Office, noting that the rapidly growing but loosely regulated nonfungible token (NFT) industry already touches many areas of human innovation “from academia to entertainment to medicine, art, and beyond.”. The legislators were requesting a study to explain how this emerging technology fits into the world of intellectual property (IP) rights, including copyrights, trademarks, and patents. In this article, Finnegan partners Anna Naydonov and Michael Young provide insight on the trademark and copyright implications related to NFTs and crypto-based innovations.
Michael said, “Many feel it is time for Congress to step in and provide the predictability needed for innovation to flourish…The lack of clarity surrounding patent subject matter eligibility for software remains a top concern for NFTs and other crypto-based innovations in both the [United States] and abroad.” Anna added, “A wave of litigations has already begun for trademarks and copyrights, and courts are grappling with applying principles crafted long before the NFTs existed.”
When asked about concerns and risks over possible over-regulation of NFTs from the government, Michael said, “Such risks always exist, which is why intellectual property and marketing lawyers in this space hope that the U.S. Patent and Trademark Office, the U.S. Copyright Office, the Federal Trade Commission and/or legislators work closely with key industry stakeholders to understand the main legal challenges and the technology behind NFTs and come up with workable solutions.” Anna added, “Regulation and legislation without input from the industry could set the [United States] back as compared with other jurisdictions.”
Read “Will Intellectual Property Issues Sidetrack NFT Adoption?”
