NFT Intellectual Property and Copyright 3 — Questions and Answers
Question 1: An NFT creator samples a 3-second music clip without permission. Which area of IP law is most relevant?
- Patent law
- Trademark law
- Copyright law (Correct answer)
- Trade secret law
Correct answer: Copyright law
Music compositions and sound recordings are protected by copyright, and unauthorized sampling can constitute infringement.
Question 2: What does 'CC0' mean when applied to an NFT project's artwork?
- Commercial use is completely prohibited
- The work is dedicated to the public domain with no rights reserved (Correct answer)
- Only the creator can modify the work
- Copyright is held by the blockchain foundation
Correct answer: The work is dedicated to the public domain with no rights reserved
CC0 (Creative Commons Zero) is a public domain dedication allowing anyone to use the work for any purpose without restriction.
Question 3: An NFT buyer wants to use the artwork on merchandise. What should they look for in the NFT's terms?
- The gas fee schedule
- The commercial use license grant (Correct answer)
- The minting date
- The blockchain consensus mechanism
Correct answer: The commercial use license grant
Commercial use rights must be explicitly granted in the NFT's accompanying license or smart contract terms.
Question 4: Which of the following best describes a 'derivative work' in copyright law?
- An exact copy of the original
- A work based upon and incorporating elements of a pre-existing copyrighted work (Correct answer)
- A work created independently with similar style
- A public domain adaptation
Correct answer: A work based upon and incorporating elements of a pre-existing copyrighted work
A derivative work transforms, adapts, or builds upon a copyrighted original, requiring permission from the copyright holder.
Question 5: A photographer's image is used without consent to create an NFT. What is the appropriate first legal step for the photographer?
- File a patent application
- Issue a DMCA takedown notice to the platform (Correct answer)
- Sue the blockchain network
- Register a new trademark
Correct answer: Issue a DMCA takedown notice to the platform
The DMCA provides a notice-and-takedown procedure allowing copyright holders to request removal of infringing content from online platforms.
Question 6: What is 'tokenized copyright,' a concept emerging in the NFT space?
- Using tokens as currency to buy copyright registrations
- Representing fractional or full copyright ownership as an on-chain token (Correct answer)
- A government program to register digital art
- Encrypting copyright notices in metadata
Correct answer: Representing fractional or full copyright ownership as an on-chain token
Tokenized copyright refers to encoding copyright ownership or licenses on-chain so that transfers of the token legally transfer associated IP rights.
Question 7: An NFT project uses a celebrity's likeness without permission. Which right is most directly violated?
- Copyright
- Right of publicity (Correct answer)
- Trade secret
- Patent
Correct answer: Right of publicity
The right of publicity protects individuals' rights to control commercial use of their name, image, and likeness.
NFT Intellectual Property and Copyright 3
An NFT creator samples a 3-second music clip without permission.
Which area of IP law is most relevant?