NFT Intellectual Property and Copyright 2

Question 1

An artist mints an NFT of their digital painting. Who holds the copyright to the underlying artwork by default?

Accepted Answer

The artist who created it

Answer

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?

Accepted Answer

Right to make commercial reproductions

Answer

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?

Accepted Answer

Fair use

Answer

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?

Accepted Answer

Trademark infringement

Answer

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?

Accepted Answer

Code embedded in the NFT that automates royalty and usage terms

Answer

Smart contract licenses encode usage permissions and royalty splits directly into the NFT's on-chain code, executing automatically.

NFT - Art Practice Test