NFT Intellectual Property and Copyright 2 — Questions and Answers
Question 1: An artist mints an NFT of their digital painting. Who holds the copyright to the underlying artwork by default?
- The NFT marketplace
- The artist who created it (Correct answer)
- The first buyer of the NFT
- The blockchain network
Correct answer: The artist who created it
Copyright automatically vests in the creator of an original work, and minting an NFT does not transfer that right unless explicitly assigned.
Question 2: A collector buys an NFT artwork. What right does the collector NOT automatically receive?
- Right to resell the NFT
- Right to display it privately
- Right to make commercial reproductions (Correct answer)
- Right to transfer ownership
Correct answer: Right to make commercial reproductions
Purchasing an NFT conveys ownership of the token, not a license to commercially reproduce the underlying copyrighted work.
Question 3: Which legal doctrine allows limited use of copyrighted material without permission for commentary or criticism?
- First sale doctrine
- Fair use (Correct answer)
- Work for hire
- Public domain
Correct answer: Fair use
Fair use (17 U.S.C. § 107) permits limited use of copyrighted works for purposes such as criticism, comment, and education.
Question 4: An NFT project uses a famous logo without permission. What IP claim would the brand most likely pursue?
- Patent infringement
- Trademark infringement (Correct answer)
- Trade secret misappropriation
- Breach of contract
Correct answer: Trademark infringement
Unauthorized use of a brand's distinctive logo in commerce constitutes trademark infringement.
Question 5: What is a 'smart contract license' in the context of NFT IP rights?
- A government-issued certificate
- Code embedded in the NFT that automates royalty and usage terms (Correct answer)
- A paper contract signed by the buyer
- A license granted by the blockchain protocol
Correct answer: Code embedded in the NFT that automates royalty and usage terms
Smart contract licenses encode usage permissions and royalty splits directly into the NFT's on-chain code, executing automatically.
Question 6: Under U.S. copyright law, how long does copyright protection last for a work created by an individual artist today?
- 28 years
- 70 years
- Life of the author plus 70 years (Correct answer)
- 100 years from publication
Correct answer: Life of the author plus 70 years
For works created by individuals, U.S. copyright lasts the author's lifetime plus 70 years.
Question 7: A digital artist creates an NFT collection while employed at a design studio during work hours. Who likely owns the copyright?
- The artist personally
- The employer, under work-for-hire doctrine (Correct answer)
- The NFT marketplace
- The government
Correct answer: The employer, under work-for-hire doctrine
Works created by employees within the scope of employment are 'works made for hire,' giving copyright ownership to the employer.
NFT Intellectual Property and Copyright 2
An artist mints an NFT of their digital painting.
Who holds the copyright to the underlying artwork by default?