Current Legal Issues in the NFT Space

Unanswered Legal Questions

There are several unanswered legal questions surrounding NFTs:

1. Validity of NFT Token Purchase

– Is there a valid license (contract) established merely by purchasing an NFT token on a marketplace that does not convey the Terms and Conditions?
– Does this situation change if the smart contract links to the Terms of Use?

2. Transfer of Copyrights or Exclusive Licenses

– Can copyrights or exclusive licenses be effectively transferred through the sale of an NFT token under any circumstances?

3. Enforcement of NFT Licenses

– Are the licenses associated with NFTs enforceable, and to what extent?
– How does the concept of enforcement apply to subsequent buyers of NFTs?

4. Rights to Enforce Licenses

– Who holds the right to enforce the license terms of NFTs, and how can these rights be exercised?

5. Modification of License Terms

– Is there a legal mechanism to change the terms of an NFT license after it has been issued?

6. Sublicenses and NFT Transfer

– What happens to a sublicense when an NFT is transferred to a new owner? (This is covered in CryptoPunks licenses but not in many others)

7. Copyright in Generative and AI Art

– Is there an enforceable copyright when the copyright pertains to generative art or AI art creations?

These are complex and evolving legal questions that require further examination as the NFT space continues to develop and mature.