Recently we all have been hearing of terms such as - NFTs, Bitcoin, cryptocurrency, blockchain and the like.
With this article we will attempt to distinguish and describe an NFT. A Non-Fungible Token is a digital asset whose authenticity has been registered on a block chain ledger. The expression "non-fungible" signifies uniqueness. Although both crypto currencies and Non-Fungible Tokens use block chain innovation, they are not the same. Crypto currencies such as Bitcoin, Ripple, and Ethereum, are fungible tokens, which means each crypto currency unit is equivalent to another.
Claiming a Non-Fungible Token is similar to possessing a signed poster of a sports star stuck to your notice board. You are the sole proprietor of that photo. Likewise, only a single individual can own a Non-Fungible Token. However, the original creator of that photo possesses the intellectual property rights in the photograph. Non-Fungible Tokens help in recording this right digitally.
A new market for Non-Fungible Tokens has arisen wherein organizations and people purchase and sell these non-fungible tokens. By and large, without an agreement, ownership of a Non-Fungible Tokens will not grant ownership of the underlying content or any associated intellectual property rights. Thus, a Non-Fungible Token proprietor may not be allowed to imitate, disperse copies, reproduce, or make derivative works of the original work. It is similar to a painter selling his painting, but not giving up the intellectual property rights in that painting.
Non-Fungible Tokens have largely impacted the entertainment industry. The Non-fungible nature of NFTs has made another distribution model for monetizing intellectual property, and different considerations ought to be tended to when licensing, allocating, or transferring intellectual property rights. Further, NFT creators ought to be aware of potential infringement when utilizing intellectual property and consider protection under law for their original creations. Due to some of the unique aspects of Non-Fungible Tokens, various new considerations need to be addressed when licensing, assigning, or transferring intellectual property rights.
As brands become more aggressive in making their own tokenized assets during this beginning phase of the Non-Fungible Token bubble, they would be reasonable to rethink their Intellectual Property security regulations. For instance, brand proprietors ought to consider extending their trademark registrations to cover trademark uses and classifications that include Non-Fungible Tokens.
Because of the nature of block chain transactions, joined with the anonymous nature of Non-Fungible Token ownership, it is very difficult to uphold Intellectual Property rights against a purchaser once a Non-Fungible Token is sold. Normally, a Non-Fungible Token is associated to a digital wallet address, however the identity of the wallet proprietor may be difficult to discern without sophisticated computer forensics.
Earlier last month, WazirX was announced as India’s first and largest NFT marketplace. WazirX is India’s biggest cryptocurrency exchange. WazirX is a subsidiary of Binance, which is known to be the world’s largest cryptocurrency exchange. Binance was incorporated in 2017 and is headquartered in Cayman Islands. WazirX was acquired by Binance in 2019. WazirX stated that, ‘the NFT marketplace launched is for Indian artists and creators to narrate the new Indian story.’