How do NFT creators transfer IP rights?
Pursuant to Article 110 of the Italian Copyright Law the transfer of the use rights of an artwork
must be proved with documental evidence; therefore the transfer agreement has to be in writings
or has to be deduced by written evidence.
The use of NFTs shall be able to comply with this requirement with respect to the rights
transferred, as it ensures an immutable record of the transfers in the blockchain.
NFT creators typically transfer intellectual property (IP) rights through a written contract. This contract would outline the terms of the IP transfer, including the specific rights being transferred and any restrictions or limitations on the use of the IP. The contract would need to be signed by both the NFT creator and the recipient of the IP rights in order for the transfer to be legally binding. However, currently, when the NFT is purchased, the owner does not get the copyright to the underlying piece of art. According to Section 19 of the Copyright Act of 1957, to transfer copyright and be regarded as an owner, a written sale contract declaring explicit assignment of copyright must be present.
Under Section 14 of the Copyright Act, only the owner of a work has the right “to reproduce and distribute copies of it”. As a result, unless the buyer and seller expressly restrict the resale or copying of the NFT, such action may not be accorded protection.
See above reply under 18.104.22.168. The sale of a NFT does not imply any transfer of IP
rights on the underlying IP. Under French law, any licence/assignment of copyrights
(droits d’auteur) needs to be in writing and to comply with the strict provisions of the
French Intellectual Property Code.
The creator of the NFT can create terms, regulations, rules, and texts in the descriptions of marketplaces or any format that allows the legal binding of a license capable of establishing the rules for the right to use the intellectual property linked to the NFT, which can be exercised by the holder. In this context, the creator can also draw up an assignment contract determining the transfer of ownership of the intellectual property rights that can be assigned in accordance with law 9610 of 1998. The moral rights remain with the author of the work, as
they are inalienable by the force of law.
Any transfer or restriction of transfer for IP rights will be included within the Terms and
Conditions of the NFT Site Platform. If it is not, there may be an issue where the buyers of
the NFTs have a reasonable belief that they are purchasing the NFT along with IP rights
when if fact they are not. The same problem will be present where the creator didn’t want to
transfer IP rights and an absence of such language in the Terms may subject him to having
given away those IP rights inadvertently.
In Canada, intellectual property rights can be transferred with what we call an “assignment
agreement”. An assignment agreement is a transfer of some or all intellectual property rights to
another party. Such assignment must be made in writing and signed by the copyright owner (in
this case, probably the NFT creator) and the other party (in this case, probably the NFT holder).
In some instances, such transfer must be recorded with the appropriate intellectual property
offices. In Canada, if your copyright is registered with the Canadian Intellectual Property Office
(CIPO), you must also record the transfer with CIPO for it to be effective. You can contact a
trademark agent or intellectual property lawyer to assist you with this.