NFT Intellectual Property and Copyright 4

Question 1

Which U.S. federal agency handles copyright registration for digital artworks including NFTs?

Accepted Answer

U.S. Copyright Office (USCO)

Answer

The U.S. Copyright Office, a part of the Library of Congress, manages copyright registration for all creative works including digital art.

Question 2

If an NFT project's smart contract automatically pays royalties to the original artist on secondary sales, what legal concept does this reflect?

Accepted Answer

Droit de suite (resale royalty right)

Answer

Droit de suite gives artists a right to a percentage of resale proceeds; NFT smart contracts can enforce this automatically on-chain.

Question 3

A digital artist discovers their work was minted as an NFT by someone else. Which is NOT a valid legal remedy available to them?

Accepted Answer

Demanding the blockchain delete the transaction

Answer

Blockchain transactions are immutable and cannot be deleted by courts or rights holders; remedies focus on marketplaces and downstream distribution instead.

Question 4

What is the significance of copyright registration for an NFT artist pursuing infringement litigation in the U.S.?

Accepted Answer

It enables the artist to seek statutory damages and attorney's fees

Answer

Registration before infringement (or within 3 months of publication) allows the copyright holder to pursue statutory damages up to $150,000 and attorney's fees.

Question 5

Which term describes artwork whose copyright has expired and is freely usable by anyone?

Accepted Answer

Public domain

Answer

Public domain works are those whose copyright has expired or was never established, making them free for anyone to use without permission.

NFT - Art Practice Test

NFT - Art Practice Test

NFT Intellectual Property and Copyright 4