NFT Intellectual Property and Copyright 3

Question 1

An NFT creator samples a 3-second music clip without permission. Which area of IP law is most relevant?

Accepted Answer

Copyright law

Answer

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?

Accepted Answer

The work is dedicated to the public domain with no rights reserved

Answer

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?

Accepted Answer

The commercial use license grant

Answer

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?

Accepted Answer

A work based upon and incorporating elements of a pre-existing copyrighted work

Answer

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?

Accepted Answer

Issue a DMCA takedown notice to the platform

Answer

The DMCA provides a notice-and-takedown procedure allowing copyright holders to request removal of infringing content from online platforms.

NFT - Art Practice Test