Cooley LLP partner Bobby Ghajar and associates Marcus Peterson
and Alexander Galicki discuss intellectual property pitfalls to
watch out for when purchasing NFTs, or non-fungible tokens, which
include assuming that buying a token grants all rights. The
attorneys provide some best practices for NFT purchasers.
You created your crypto wallet account, joined an exchange,
linked the two, and you are ready to start purchasing NFTs, or
non-fungible tokens. But what does buying an NFT really give you,
and does it transfer any intellectual property rights?
You can purchase an NFT of the Mona Lisa, but will you own
anything more than a piece of digital art without any proprietary
value? The short answer: It depends on the seller, the platform,
the listing, and the terms of the smart contract (e.g., electronic
instructions created when minting the NFT) that governs the sale of
the NFT.
