Experienced NFT Attorneys and Consultants
Non-fungible tokens (NFT) or digital asset IP challenges need experts. If you don't know the rights of NFT entities, how to protect a digital asset IP, or just want legal help on NFTs/digit asset IPs, hire an NFT or digital asset attorney.
NFTs are incredibly popular today. The NFT “craze" can be attributed to the benefits of owning memorabilia or something incredibly unique that many people would love to have. NFTs make it possible to trace genuine ownership of many digital assets, including artwork which comes with many benefits.
However, NFTs have their own unique challenges. As many transactions move to the blockchain, digital asset IP issues are emerging.
We have an expert team of NFT attorneys and consultants who understand the latest in the NFT and digital asset IP space. Get advice on NFT ownership, how to buy an NFT, benefits of NFTs, protecting your NFT, regulations on NFTs, and more. Let's simplify NFT and digital asset IP issues for you.
Definition: NFTs
An NFT (non-fungible token) can be defined as a digital asset that is transferable and storable on the blockchain. However, NFTs can't be exchanged with other NFTs. Every NFT is unique. Most importantly, each NFT represents unique ownership. Since there can only be one NFT and it can't be exchanged with anything else, this creates scarcity which, in turn, creates value.
This explains why many NFTs skyrocket in price. One notable example is a series of NFTs dubbed “Bored Ape" – some of which sell for millions. Anything can be transformed (tokenized) into an NFT, the most popular being artwork. However, tweets, images, videos, audio, collectibles, and many other digital forms of things can be tokenized.
NFT Ownership
When you purchase an NFT, you receive a certificate proving you are the genuine owner. Since there can only be one NFT representing ownership of a unique digital asset, NFTs tend to hold value like traditional physical assets.
Proving ownership is as simple as proving you have cryptocurrency (Ethereum) in a digital wallet. The private key proves you own an NFT, while a public key acts as the NFT's certificate of authenticity. This is recorded on the blockchain and can't be altered. As a result, holding an NFT is proof you own the original.
NFT ownership comes with benefits such as earning royalty fees. If someone buys the NFT from you and becomes the new owner, and if that person sells the NFT in the future, you will earn royalty fees.
NFTs and Ethereum
NFTs run on Ethereum's blockchain. The blockchain is useful for NFTs because Ethereum's network has the capacity to run multiple and advanced applications. Like other blockchains, Ethereum blockchain operates without relying on third parties.
The decentralized nature also eliminates concerns about compensating such third parties in the form of transaction fees. Since NFTs utilize blockchain technology, manipulating data once transactions are confirmed is extremely difficult. In simple terms, NFT ownership can't be stolen or counterfeited.
NFT buyers on the Ethereum network can rest assured that they can trade their NFTs on another product since the Ethereum blockchain facilitates all products in its network to work with other products. Most importantly, NFT transactions are publicly verifiable. Anyone can prove ownership information of any NFT.
Guide to Creating NFTs
Anyone can make an NFT. You just need to create a digital asset such as digital art online and convert it through a special process (minting) to create an NFT. This process is similar to mining cryptocurrency and makes your NFT part of Ethereum blockchain.
Step 1: Buy Ethereum
To buy NFTs, you need Ethereum, so you must open an account with a cryptocurrency exchange online and buy Ethereum.
Step 2: Create a Cryptocurrency Wallet
You should proceed by creating a crypto wallet and transferring your Ethereum to the wallet.
Step 3: Create Your NFT and Sell
As mentioned, you can create digital assets such as artwork and convert it into an NFT via minting. This process puts the NFT in the marketplace of your choice. You can include the description and price of the NFT.
Sites host NFTs tend to charge fees for each sale which represents the energy required to complete a transaction. Other probable costs include conversion fees, buying/selling fees, and fees accounting for price fluctuations. In some cases, it can be more costly to make an NFT than to buy one. However, anyone can make an NFT.
Definition: Digital Asset IP
A digital asset is anything that a person or an entity owns/has right over, and that is storable in digital format. In a nutshell, a digital asset IP can qualify as intellectual property rights or protections for digital assets.
Companies or individuals can create digital assets via computers, audio systems, smartphones, voice recorders, digital cameras, and other devices that can create digital content. The process discussed above can then be used to create an NFT. Digital assets can be stored in hard drives, network servers, USB drives, tapes, internet servers, etc.
Examples of Digital Asset IP
Digital IP or intellectual property in digital format capable of being protected includes many things ranging from copyright to patents, trademarks, and trade secrets. Different categories have requirements and characteristics to be protected. What's more, each category has different costs of securing protection.
Important types of digital assets include websites, logos, customer details, and social media accounts. The scope of intellectual property matters. Most businesses don't know how far digital asset IP protection extends under the law. The importance of retaining an IP attorney knowledgeable in digital assets can't, therefore, be overemphasized.
Digital Asset IP Protection Issues
Since digital assets such as websites, social media accounts, logos, etc., are extremely valuable for business functions like sales, operations, and marketing, they must be protected. Copyright belongs to the creator/first owner of a digital asset.
Many companies and individuals use encryption and encoding to protect their digital assets since most are susceptible to hacking, making illegal copies, and other copyright infringement issues. Using someone else's digital asset IP attracts investigations, criminal charges, prosecution, and fines.
Expert Advice with Digital Asset IP or NFTs
NFTs are exceedingly popular today. They help individuals and entities to buy and reserve rights to a unique, genuine digital asset.
Digital asset IP protects digital assets, which is critical in today's world characterized by hacking, fraud, and theft.
For advice on NFTs & digital asset IP, talk to experienced lawyers and consultants knowledgeable in these matters.
Blockchain Lawyer has a team of NFT and digital asset IP experts bound to assist on all matters, including protecting your digital assets to avoid legal problems. Contact us now for a free, confidential NFT/digital asset IP consultation.
