Litigation special counsel Rola Daaboul published an article in World Intellectual Property Review discussing NFTs and brand protection. She explains NFTs are the latest widely misunderstood trend to take over our already complicated world. With significant regulatory and compliance risks associated with NFT and blockchain activities, it is critical that businesses and IP owners properly arm themselves against such activities and transactions that can negatively impact the value of their brand and IP, and take precautions to thwart potential litigation. The basic rules for NFTs are the same as they are with tangible assets, Daaboul explained. If you steal something in real life, you are liable for theft. If you use someone’s trademark or copyright without permission, you are essentially stealing rights that you do not hold and are liable for infringement.
"The largest issue that arises with respect to NFTs is the misunderstanding of the scope of rights granted to an NFT purchaser. Most people automatically assume that if they purchase something they acquire the right to display, perform, commercialise, and pretty much do whatever they want with it. That is simply not the case," said Daaboul.