NFTs, Trademarks, and the Importance of Protection

Graphic of NFT coming out of cellphone

In an ever-growing digital world, new and innovative ways of owning and transferring property are being created. Non-Fungible Tokens or NFTs are one such innovation, quickly becoming a staple in digital property ownership. Our New York intellectual property attorneys demystify NFTs, explain what they are, how they work, and the importance of protecting your intellectual assets.

What is an NFT?

NFTs are digital assets that are stored on a blockchain. This makes them unique and non-fungible, meaning another identical asset cannot replace them. NFTs can represent anything from artwork to in-game items and even real estate. The possibilities are endless! One of the main advantages of NFTs is that they can be easily traded or sold without needing a third party, like a bank or broker.

How Are NFTs Used?

NFTs are most commonly used as a way to represent ownership of digital assets. This can include everything from artwork to in-game items and even real estate. NFTs allow for quick and easy transactions with minimal fees, and the blockchain's security means no central point of failure.

What Are Some Examples of NFTs?

In theory, NFTs can be used for any property that (1) is unique and (2) requires ownership proof. Thus, NFTs can represent almost any physical or virtual property, including:

  • A limited run of sneakers
  • Digital artwork
  • Digital collectibles
  • Domain names
  • An essay
  • Tickets
  • Parcels of real estate

How Are Companies Using NFTs?

NFTS can improve revenue, brand awareness, trust, and authenticity.

Authentication: An example would be a luxury brand issuing serial numbers for their products and using NFTs to authenticate them. By trusting in the authenticity of high-end items, the market for those items is protected, as is their marketability.

Brand Awareness: Companies and organizations are creating brand awareness by licensing their brands and by releasing NFT packages. Auctions are increasingly used to sell NFTs for bespoke footwear, clothing, and artwork.

New streams of revenue: By licensing their brands and authenticating digital products with NFT packages, companies and organizations are creating new revenue channels. Music bands sometimes use their branding or images to release digital content exclusively for their fans.

Why is Trademark Protection Important for NFTs?

Trademark protection is essential for any intellectual property, but it is especially important for NFTs. This is because NFTs can be easily copied and distributed without the owner's permission. If someone were to create an unauthorized copy of an NFT, they could sell it or trade it without the owner ever knowing. This would result in the owner losing valuable property and damaging their reputation.

To prevent this from happening, it is important to have a strong trademark registration in place. This will give the owner the exclusive right to use and distribute their NFTs. It will also deter others from creating unauthorized copies.

If you're thinking about creating an NFT, or you already have one, contact a trademark attorney to discuss your options for protection. Without a strong trademark registration in place, you could be at risk of losing your valuable property.

How M. Ross & Associates, LLC Can Help You

If you want to trademark your NFTs, working with an experienced intellectual property lawyer is crucial. At M. Ross & Associates, LLC, we can help you navigate the process and ensure everything is done correctly. We can also offer advice on protecting your NFTs from infringement and other risks.

Contact M. Ross & Associates, LLC at (201) 897-4942 for dependable advice and comprehensive client services for your intellectual property needs!