IP Rights & Licensing for NFTs

June 4, 2026

41 min read

1. Global Landscape -- Models for IP Rights in NFTs

1.1 The Fundamental Problem

The single most important legal fact about NFTs and intellectual property is universally consistent across all 20 jurisdictions examined: purchasing an NFT does not, by itself, transfer copyright in the underlying work. This principle is confirmed in the copyright statute of every jurisdiction in this study -- from the

US (17 USC 204(a)) and
UK
(CDPA s.90(3)) through to
India
(Copyright Act 1957 s.19(1)),
Thailand
(Copyright Act B.E. 2537),
South Africa
(Copyright Act 1978) and
China
(where the buyer acquires only "network virtual property" in the token). It has additionally been confirmed by WIPO-affiliated experts, the USPTO/USCO joint study, and the European Parliament JURI Committee. Yet consumer surveys and market behaviour consistently demonstrate that a significant proportion of NFT buyers believe -- incorrectly -- that they are acquiring IP rights when they purchase an NFT.

This gap between legal reality and market expectation is the central regulatory challenge in NFT IP rights. It manifests in four dimensions:

  1. Ownership confusion: Buyers assume they own the artwork, not merely a token referencing it
  2. Licensing ambiguity: Many NFT projects fail to specify what rights, if any, are conveyed
  3. Royalty fragility: Creator royalties enforced via smart contracts lack legal backing and can be circumvented by platforms
  4. Cross-border complexity: The same NFT transaction may be governed by different IP regimes depending on the jurisdictions of the creator, platform, buyer, and hosting infrastructure

1.2 Four Models of IP Conveyance in NFTs

Across the 20 jurisdictions, four distinct models for what an NFT purchase conveys have emerged:

ModelDescriptionJurisdictionsExamples
License-only (default)Buyer receives the token; copyright remains with creator; any usage rights depend entirely on separate licence termsEvery jurisdiction in this study, incl.
US
,
EU
,
UK
,
Japan
,
Singapore
,
India
,
Thailand
,
South Africa
,
Switzerland
, Germany
Most NFT projects globally
Commercial licence coupled to tokenExplicit licence granting commercial exploitation rights transfers with the token
US
(contractual); permissible in any jurisdiction by express written terms
Bored Ape Yacht Club (post-Yuga Labs August 2022 terms)
Copyright transfer possible but formalisticCopyright can be assigned, but requires written instrument satisfying statutory formalities
US
(17 USC 204(a)),
UK
(CDPA s.90(3)),
France
(CPI L.131-3),
Canada
(s.13(4)),
Brazil
(Art. 49),
India
(s.19(1)),
South Africa
(written + signed)
Extremely rare in practice
Moral rights overrideEven when copyright is transferred, creator retains inalienable moral rights (attribution, integrity, disclosure)
France
,
Japan
,
Brazil
,
India
,
South Korea
,
Canada
(waivable in writing), Germany, most civil-law jurisdictions
All NFT transactions in these jurisdictions

China is a distinctive outlier. Primary issuance of domestic "digital collectibles" (数字藏品) is permitted via state-supervised platforms, but secondary trading/resale is banned in practice, and the buyer receives only an anti-tampering right over the on-chain record -- not copyright and not even a freely transferable token. Reproduction, distribution, adaptation and network-dissemination rights remain with the copyright owner, and platforms owe a heightened prior-ownership review duty (Qice v. Bigverse).

A critical regulatory distinction is whether existing copyright transfer formalities can be satisfied by smart contract transactions. In every one of the 20 jurisdictions, an assignment of copyright requires (at minimum) an express agreement; most require it in writing. The question of whether a smart contract alone satisfies that requirement is untested everywhere.

JurisdictionStatutory RequirementSmart Contract SufficiencyStatus
US
Written instrument signed by copyright owner (17 USC 204(a))Untested; likely insufficient absent explicit written termsNo case law
Brazil
Express written agreement (Copyright Act 9,610/1998 Art. 49); inalienable moral rights (Art. 24)Untested; written express assignment requiredNo case law
Canada
Express written assignment (Copyright Act s.13(4)); moral rights waivable only in writing (s.14.1)UntestedNo case law
EU
Varies by Member State; written assignment generally required (DSM Dir. 2019/790; InfoSoc 2001/29)Untested at EU levelNo CJEU guidance
UK
Written assignment signed by or on behalf of assignor (CDPA s.90(3))Untested; UK courts have not ruledNo case law
France
Each assigned right separately specified in writing (CPI L.131-3)Insufficient; French law requires granular specificationConfirmed by doctrine
GermanyNo formal writing requirement for exploitation agreements, but moral rights inalienable; NFT may be a previously unknown type of use (UrhG §31a, §32c)Possible for exploitation rights; authorship non-transferableAcademic debate ongoing
Switzerland
No formal writing requirement; transfer effective on agreement (URG)More flexible; but no statutory resale rightNo case law
Liechtenstein
Explicitly specified rights; moral rights non-transferable (URG); TCM can embed licence termsMore flexible; container model suits embedded licencesNo case law
Japan
Written agreement standard; moral rights inalienable regardlessPossible in theory; moral rights remain inalienableNo case law
Singapore
Assignment agreed in writing (Copyright Act 2021 s.194)UntestedNo case law
South Korea
Copyright subsists automatically (life + 70 yrs); reproduction/distribution rights stay with holder; moral rights inalienableUntestedNo case law
China
Rights remain with copyright owner unless expressly licensed/assigned in writing; buyer gets only anti-tampering rightUntested; written assignment required; platform review dutyQice v. Bigverse (platform duty)
Thailand
Express written assignment (Copyright Act B.E. 2537 (1994, amended 2022)); auto protection, life + 50 yrsUntested; statutory gap on NFTs left to contractNo case law
India
Written signed assignment (Copyright Act 1957 s.19(1)); moral rights (s.57) inalienableUntested; NFT metadata/pointer generally not itself copyrightableNo case law
Bahrain
Explicit transfer required (Legislative Decree No. 22 of 2006)Untested; scope set by smart contract / ToSNo case law
UAE
Explicit written transfer (Federal Decree-Law No. 38 of 2021)Untested; token = certificate of authenticity, not IP transferNo case law
South Africa
Assignment in writing and signed (Copyright Act 1978)Untested; absent assignment, buyer gets limited licenceNo case law

Sources:

  • WIPO Magazine, "Non-Fungible Tokens (NFTs) and Copyright" by Andres Guadamuz (2022): WIPO
  • USPTO/USCO, "Non-Fungible Tokens and Intellectual Property" Joint Report (12 March 2024): USPTO
  • European Parliament JURI Committee, "Intellectual Property Rights and Distributed Ledger Technology" (PE 737.709, October 2022): European Parliament

2. Comparative Analysis

The table below mirrors the three core IP dimensions for every jurisdiction in the study: the copyright default on purchase, the prevailing licensing norm, and the resale-royalty position.

JurisdictionCopyright Default on PurchaseLicensing NormStatutory Resale Royalty (Droit de Suite)
US
No transfer; token only (17 USC 204(a) needs written assignment)Scope set by project T&Cs; spectrum from no licence to commercial (e.g. BAYC) to rare full assignmentNo federal artist resale right; issuer royalties cited by SEC as securities evidence
Brazil
No transfer; token only (Art. 49 needs express written agreement)Copyright vests in creator; must be expressly assigned/licensed; inalienable moral rights (Art. 24)NOT VERIFIED (no resale-royalty provision stated); moral rights non-assignable
Canada
No transfer; token only (s.13(4) needs express written assignment)Express written assignment required; moral rights (s.14.1) waivable only in writing; creator keeps right to mint further NFTs absent agreementNOT VERIFIED (no resale-royalty right stated); creator NFT royalties taxed as business income
EU
No transfer; remains with creator unless expressly assigned in writing (DSM 2019/790; InfoSoc 2001/29)Minting = reproduction/communication to public needing authorisation; digital exhaustion does NOT apply (Tom Kabinet C-263/18)Yes -- Resale Right Directive 2001/84/EC (4% to 0.25% sliding, cap EUR 12,500); application to born-digital NFTs not settled
France
No transfer; each assigned right must be in writing (CPI L.131-3); buyer acquires only the tokenMinting = reproduction needing author's prior consent (CPI L.122-3); inalienable perpetual moral rights (CPI L.121-1)Yes -- droit de suite (CPI L.122-8, implementing 2001/84/EC); not formally extended to purely digital NFT art; CSPLA June 2025 charter
GermanyNo transfer; exploitation rights remain with creator unless explicitly transferred (UrhG)NFT may be a previously unknown type of use (UrhG §31a, §32c -- additional remuneration possible); inalienable moral rights; trademark risk (MarkenG)Yes -- Folgerecht (UrhG §26): ~4% on first EUR 50,000 (cap EUR 12,500; de minimis EUR 400); application to NFT secondary sales not yet settled
Liechtenstein
No automatic IP transfer; buyer acquires token plus explicitly specified rights (URG)Moral rights protected and non-transferable; TVTG Token Container Model well-suited to embed licence termsNo statutory resale right; like Switzerland, royalty must be contractual/smart-contract
Switzerland
No automatic IP transfer; buyer acquires only token unless smart contract/agreement explicitly assigns IP (URG)Minting = reproduction/distribution requiring consent (URG Art. 10); moral rights retained; trademark via MSchGNo statutory resale right (droit de suite / Folgerecht); resale royalty must be contractual/smart-contract
UK
No transfer; assignment in writing signed by assignor (CDPA s.90(3)); buyer gets token + URI, no reproduction rightsModels in practice: no licence / personal-use / commercial / full assignment; enforceability of smart-contract terms untested; unauthorised minting may infringe (s.16 CDPA)Artist's Resale Right exists in UK law (Regs 2006, retained post-Brexit); not extended to NFTs; digital exhaustion unclear post-Brexit (UsedSoft no longer binds); no UK case law
Japan
No transfer unless assigned in writing; minting = reproduction/public transmission needing authorisationInalienable moral rights (disclosure/attribution/integrity) retained; rights conveyed must be stipulated by contractNo statutory droit de suite; smart-contract resale royalties used as technological substitute
Hong Kong
No transfer unless expressly assigned in writing (Copyright Ordinance Cap. 528)Buyer typically gets token + limited personal-use display licenceNo statutory resale royalty (not addressed in file)
Singapore
No transfer unless agreed in writing (Copyright Act 2021 s.194)Buyer typically gets limited non-exclusive personal/non-commercial display licence; commercial rights vary by projectNo statutory resale royalty (not addressed in file)
South Korea
No transfer; copyright subsists automatically (life + 70 yrs); reproduction/distribution rights stay with holderLimited licences (collect/display/trade); K-pop agencies retain underlying IP; moral rights inalienableNo statutory resale-royalty right stated; platforms must address whether IP holders receive secondary-sale royalties
China
Purchase conveys network virtual property in the token, NOT copyright; buyer gets only anti-tampering right over the on-chain record, cannot prevent copyingRights remain with copyright owner unless expressly licensed/assigned in writing; platforms owe heightened prior-ownership review duty (Qice v. Bigverse)Not applicable -- secondary trading/resale prohibited in practice; no resale-royalty regime
Thailand
No transfer; automatic protection (life + 50 yrs); reproduction/adaptation/communication rights stay with owner unless expressly assigned in writingCopyright Act B.E. 2537 (1994, amended 2022); unauthorised minting of third-party works infringes; statutory gap on NFTs left to contractNo statutory artist resale-royalty right; NFT royalty mechanisms contractual/marketplace-dependent
India
No transfer; s.19(1) needs written signed assignment; NFT itself generally not copyrightable (metadata/pointer); moral rights (s.57) inalienableAt best a limited non-exclusive display licence for personal non-commercial use; commercial rights must be expressly granted; unauthorised minting infringes (s.51)No statutory artist resale-royalty right specific to NFTs; creator royalties depend on smart-contract/marketplace policy
Bahrain
No transfer; copyright stays with creator unless explicitly transferred (Legislative Decree No. 22 of 2006)Scope set by smart contract and platform ToS; creators must hold rights before mintingNOT VERIFIED (no statutory resale-royalty provision identified)
UAE
No transfer; copyright/trademark stay with creator unless explicit written transfer (Federal Decree-Law No. 38 of 2021)Token = certificate of authenticity/provenance; IP transfer requires explicit written agreement; clear ToS required; creators register IP with Ministry of EconomyNot specified in file (no statutory resale-royalty provision stated)
South Africa
No transfer; copyright vests in creator automatically (Copyright Act 1978); buyer owns token, not copyrightAssignment must be in writing and signed; absent that, buyer gets at most a limited (often personal/non-commercial) licence per project terms/smart contractNo statutory artist resale-royalty right (no droit de suite); creator royalties contractual/technical only

Derived aggregates (N = 20):

2.2 Jurisdiction Comparison Table -- Detailed

JurisdictionWhat NFT Purchase ConveysCopyright Transferable via NFT?Moral Rights RegimeResale Right (Droit de Suite)Key Statute / Guidance
US
Token only; licence per project termsYes, if written instrument (17 USC 204(a))Limited (VARA for visual art only)No federal resale rightHermes v. Rothschild (2023); Yuga Labs v. Ripps (9th Cir. 2025)
Brazil
Token only; express written assignment needed (Art. 49)Yes, by express written agreementInalienable, non-waivable (Art. 24)NOT VERIFIEDCopyright Act 9,610/1998; Industrial Property Law 9,279/1996
Canada
Token only; s.13(4) written assignmentYes, by express written assignmentMoral rights (s.14.1) waivable only in writingNOT VERIFIEDCopyright Act R.S.C. 1985 c. C-42
EU
Token only; no automatic IP transferYes, per Member State law; writing generally requiredStrong; varies by Member State (generally inalienable)Yes -- Dir. 2001/84/EC; not formally extended to NFTsJURI PE 737.709 (2022); ESMA CAFI Guidelines (Mar 2025)
France
Token only; CPI L.131-3 granular written assignmentYes, but each right separately specifiedInalienable and perpetual (CPI L.121-1)Yes -- CPI L.122-8; not extended to digital NFT artCSPLA Charter (June 2025)
GermanyToken only; UrhG appliesExploitation rights transferable; authorship non-transferableInalienable (Urheberpersönlichkeitsrecht)Yes -- UrhG §26 (Folgerecht); application to NFTs unsettledFG Niedersachsen 5 K 26/24 (VAT); BaFin MiCAR guidance
Liechtenstein
Token + explicitly specified rights; TCM can embed licenceYes, by explicit specification (URG)Protected and non-transferableNo statutory resale rightTVTG (Token Container Model); URG
Switzerland
Token only; URG Art. 10 appliesYes, by agreement; no formality requirementAuthor retains attribution and integrity rightsNo statutory resale rightFINMA ICO Guidelines (2018); URG; MSchG
UK
Token + URI reference; CDPA s.90(3) formalitiesYes, if written and signed (CDPA s.90(3))Moral rights exist but waivable (CDPA ss.77-89)Artist's Resale Right 2006; not extended to NFTsProperty (Digital Assets etc) Act 2025; CP26/13
Japan
Token only; minting = reproduction/transmission needing authorisationYes, by written agreement; moral rights inalienableInalienable (Copyright Act Arts. 18-20); among strongest globallyNo statutory droit de suiteJCBA NFT Business Guidelines (3rd ed., Aug 2024); BCA Guidelines
Hong Kong
Token + limited personal-use display licenceYes, if expressly assigned in writing (Cap. 528)Author retains moral rightsNo statutory resale royaltyCopyright Ordinance Cap. 528
Singapore
Token + limited non-exclusive personal/non-commercial licenceYes, if agreed in writing (Copyright Act 2021 s.194)Moral-rights protections applyNo statutory resale royaltyCopyright Act 2021
South Korea
Token + limited licence (collect/display/trade)No automatic transfer; reproduction/distribution rights stay with holderInalienable moral rightsNo statutory resale-royalty right statedFSC NFT Guidelines (June 2024); Copyright Act
China
Network virtual property in token + anti-tampering right; NOT copyrightOnly by express written licence/assignment; secondary resale bannedInalienable; reproduction/adaptation rights stay with ownerN/A -- secondary trading/resale prohibitedQice v. Bigverse (2022); Wang (Nov 2022); SPP guidance (May 2023)
Thailand
Token only; reproduction/adaptation/communication rights stay with ownerYes, by express written assignment (Copyright Act B.E. 2537)Author retains rights; statutory gap on NFTsNo statutory artist resale-royalty rightCopyright Act B.E. 2537 (1994, amended 2022); 6 Jan 2022 SEC NFT guideline
India
Token only; NFT generally not itself copyrightable (metadata/pointer)Yes, by written signed assignment (s.19(1))Inalienable moral rights (s.57)No statutory artist resale-royalty right specific to NFTsCopyright Act 1957; ASCI guidelines
Bahrain
Token only; copyright stays with creatorYes, if explicitly transferred (Decree No. 22 of 2006)Author retains rightsNOT VERIFIEDLegislative Decree No. 22 of 2006
UAE
Certificate of authenticity/provenance; not IPYes, by explicit written agreement (FDL No. 38 of 2021)Author retains rights; IP registrable with Ministry of EconomyNot specified in fileFederal Decree-Law No. 38 of 2021
South Africa
Token, not copyrightYes, if assignment in writing and signedAuthor retains rightsNo statutory resale-royalty right (no droit de suite)Copyright Act 1978

2.3 Digital Exhaustion -- The Unresolved Question

The doctrine of exhaustion (or "first sale doctrine") determines whether a copyright holder can control resale of a lawfully acquired copy. Its application to NFTs is the most significant unresolved IP question for NFT secondary markets, and -- critically -- it remains unsettled in every jurisdiction in this study.

Current legal status by jurisdiction:

JurisdictionPhysical ExhaustionDigital ExhaustionImplications for NFTs
US
Yes (17 USC 109)No (Capitol Records v. ReDigi, 2d Cir. 2018)Every NFT resale potentially requires copyright holder authorization; court left open that future technology may change analysis
EU
YesSoftware only (UsedSoft, C-128/11, 2012); No for other digital content (Tom Kabinet, C-263/18, 2019)NFT secondary markets operate in legal grey zone; no legislative proposal to extend digital exhaustion
UK
Yes (international exhaustion post-Brexit)No binding precedent; UsedSoft no longer bindingGreater uncertainty than EU; no UK court has addressed digital exhaustion for NFTs
France
YesFollows EU position (Tom Kabinet)No national NFT-specific exhaustion ruling
GermanyYesFollows EU position (Tom Kabinet)No national NFT-specific exhaustion ruling
Japan
Yes (Copyright Act Art. 26-2)No statutory positionNo case law or regulatory guidance on digital exhaustion for NFTs
China
N/AN/A -- secondary resale prohibited in practiceExhaustion immaterial: there is no lawful secondary market to exhaust into
India
/
Thailand
/
South Africa
/ others
Generally yesNo statutory position; untestedNo case law or regulatory guidance on digital exhaustion for NFTs

The paradox is clear: the entire NFT market is built on secondary resale, yet the legal basis for that resale -- without ongoing copyright holder authorization -- is unsettled in every major jurisdiction.

China is the extreme expression of this tension: rather than leave the question open, it bans secondary resale of domestic collectibles outright.

Key WIPO position: WIPO has not taken a definitive institutional position on digital exhaustion for NFTs. WIPO-affiliated publications note that blockchain technology potentially changes the traditional analysis by creating verifiable scarcity and provable ownership chains, but the question remains open under international IP law.

Sources:

  • CJEU, UsedSoft GmbH v. Oracle International Corp., Case C-128/11, 3 July 2012: EUR-Lex
  • CJEU, Nederlands Uitgeversverbond v. Tom Kabinet Internet BV, Case C-263/18, 19 December 2019: EUR-Lex
  • Capitol Records, LLC v. ReDigi Inc., 910 F.3d 649 (2d Cir. 2018): Justia
  • Columbia Law School Blue Sky Blog, "Does the First Sale Doctrine Apply to NFTs?" (January 2022): Columbia Law

2.4 Resale Rights (Droit de Suite) and NFTs

The resale right -- the entitlement of visual artists to a percentage of subsequent sale prices -- intersects with NFTs in two ways: (1) statutory resale rights under national law, and (2) smart-contract-enforced royalties implemented by platforms.

Statutory Resale Rights (5 of 20 jurisdictions have one in national law; none formally extended to NFTs):

JurisdictionStatutory Resale Right?Applicable to NFTs?Rates
EU
Yes -- Directive 2001/84/ECNot formally determined; Directive drafted for physical "graphic or plastic art"4% (first EUR 50,000) down to 0.25% (above EUR 500,000); cap EUR 12,500
France
Yes -- CPI L.122-8Not formally extended to digital art NFTs; CSPLA identified as grey areaPer EU Directive rates
GermanyYes -- UrhG §26Unsettled in case law; academic debate ongoingPer EU Directive rates (de minimis EUR 400; cap EUR 12,500)
UK
Yes -- Artist's Resale Right Regulations 2006Not extended to NFTs; no HMRC or IPO guidancePer EU Directive rates (retained post-Brexit)
US
,
Japan
,
Switzerland
,
Liechtenstein
,
Hong Kong
,
Singapore
,
South Korea
,
Australia
,
Thailand
,
India
,
South Africa
No statutory resale rightN/A; royalties contractual/smart-contract onlyN/A
China
N/A -- secondary trading/resale bannedN/AN/A
Brazil
,
Canada
,
Bahrain
,
UAE
NOT VERIFIED / not statedNOT VERIFIEDNOT VERIFIED

Smart Contract Royalties -- The Enforcement Gap:

NFT creators widely implement royalty mechanisms in smart contracts, typically 5-10% of the resale price. However, these are technological mechanisms, not legal rights, and their enforceability has eroded significantly:

  • OpenSea (the largest NFT marketplace) made creator fees optional for all collections effective February 29, 2024, following competitive pressure from Blur and other platforms that offered zero-royalty trading.
  • Smart contract royalties can be bypassed by trading NFTs through platforms that do not honour them, through direct wallet-to-wallet transfers, or through wrapper contracts.
  • The SEC cited issuer-controlled resale royalties as evidence supporting securities classification in its Stoner Cats enforcement action (September 2023), where the 2.5% royalty was a factor in the Howey analysis.
  • China
    's model removes the question entirely on the domestic side: with secondary resale suppressed, there is no resale royalty stream to enforce, frustrate, or design around.

Sources:

  • Directive 2001/84/EC (Resale Right Directive): EUR-Lex
  • Oxford Academic, "Introducing a droit de suite through NFTs in Japan: legal hurdles" (December 2024): Oxford Academic
  • OpenSea creator fees policy: OpenSea
  • CSPLA, Charter of Good Contractual Practices for NFTs (June 2025): Ministère de la Culture

3. What Works and What Doesn't -- Evidence from Litigation and Enforcement

3.1 Trademark Enforcement: Existing Law Is Sufficient

The most developed area of NFT IP litigation is trademark law. Three US landmark cases demonstrate that existing trademark frameworks apply to NFTs without requiring new legislation.

Hermes International v. Rothschild (MetaBirkins) -- S.D.N.Y. (2023)

On 8 February 2023, a jury in the Southern District of New York found Mason Rothschild liable for trademark infringement, dilution, and cybersquatting for his "MetaBirkins" NFT collection depicting furry digital versions of Hermes' Birkin handbags. Damages: $133,000 ($110,000 in profits, $23,000 cybersquatting). A permanent injunction was issued in June 2023. Rothschild appealed to the Second Circuit in November 2023.

Key holding: The First Amendment does not protect the use of a confusingly similar mark for NFTs. Traditional trademark analysis -- including the likelihood of confusion test -- applies to NFT products.

Source: Skadden -- Jury Finds That MetaBirkin NFTs Infringed Hermes' Trademark Rights

Yuga Labs, Inc. v. Ripps -- 9th Circuit (July 2025)

The Ninth Circuit issued a pivotal decision on 23 July 2025 concerning Yuga Labs' Bored Ape Yacht Club (BAYC) trademarks. The appeals court declared that NFTs qualify as "goods" under the Lanham Act, rejecting the argument that NFTs are merely digital deeds or authentication codes. However, it reversed the district court's summary judgment on infringement, finding that Yuga had not proven a likelihood of consumer confusion as a matter of law -- the case was remanded for trial.

Key holding: NFTs are commercial products for trademark purposes; however, likelihood of confusion must be proven through full evidentiary analysis, not assumed.

Source: Baker McKenzie -- NFTs, Trademarks, and the Ninth Circuit

Nike, Inc. v. StockX LLC -- S.D.N.Y. (settled August 2025)

Nike sued StockX in February 2022 over "Vault" NFTs depicting Nike sneakers with Nike trademarks. In March 2025, the court granted summary judgment on counterfeiting claims (37 pairs of counterfeit sneakers). On 29 August 2025, the parties settled all claims on confidential terms, with all claims dismissed with prejudice.

Key significance: Confirmed that brand owners will vigorously enforce trademark rights in the NFT space; the case did not produce a final judicial ruling on the specific NFT trademark questions.

Source: The Fashion Law -- Nike v. StockX Timeline

Qice v. Bigverse -- Hangzhou Internet Court (
China
, 2022)

China produced the first NFT copyright-infringement judgment globally. In Shenzhen Qice v. Hangzhou Yuanyuzhou (Bigverse) (20 April 2022, RMB 4,000 damages), the Hangzhou Internet Court held that an NFT marketplace bears a heightened prior-ownership review duty -- a platform that allows a user to mint an NFT of a third party's copyrighted work can be directly liable. A companion ruling (Wang, 29 November 2022) held that NFT collectibles are "network virtual property" protected by law, even though the buyer acquires no copyright.

Key holding: Platform duty-of-care for NFT minting is enforceable under existing copyright and e-commerce law; the buyer's interest is in the token-as-property, not in the underlying copyright.

WIPO Nice Classification Update (January 2023)

WIPO updated the Nice Classification (12th Edition) to include "downloadable digital files authenticated by non-fungible tokens [NFTs]" in Class 9 and NFT-related service categories in Class 42. This enables trademark owners worldwide to register marks for NFT-authenticated digital goods, providing the formal classification infrastructure for NFT trademark enforcement.

Source: Skadden -- Nice Classification Adds NFT Language

Copyright enforcement against unauthorized NFT minting functions under existing law, but significant ambiguities remain:

What works:

  • Minting an NFT of a copyrighted work without authorization constitutes infringement (reproduction and/or communication to the public) under the copyright laws of all 20 jurisdictions examined -- e.g.
    India
    (s.51),
    Thailand
    (Copyright Act B.E. 2537),
    France
    (CPI L.122-3),
    Switzerland
    (URG Art. 10), and via platform liability in
    China
    (Qice v. Bigverse)
  • Criminal penalties for copyright infringement apply:
    Japan
    imposes up to 10 years imprisonment or 10 million yen fine for individuals
  • DMCA-style takedown procedures have been used effectively against infringing NFTs on centralized marketplaces

What doesn't work:

  • Decentralized enforcement: Once an infringing NFT is minted on a public blockchain, the token itself cannot be removed -- only marketplace visibility can be restricted
  • Cross-border jurisdiction: An infringing NFT minted in one jurisdiction, listed on a platform in another, and purchased in a third creates jurisdictional complexity
  • Link vs. copy distinction: If the NFT merely contains a URI pointing to an off-chain work, whether minting alone constitutes "reproduction" under copyright law is contested -- a point
    India
    makes explicit by noting the NFT's metadata/pointer is generally not itself copyrightable

3.3 The CryptoPunks IP Controversy -- A Cautionary Tale

CryptoPunks, created by Larva Labs in 2017, demonstrated the consequences of IP ambiguity. Larva Labs' terms failed to specify what IP rights, if any, were conveyed to purchasers. This led to:

  • Widespread confusion about commercial usage rights
  • Holder "Punk 4156" selling a CryptoPunk for over $10 million in December 2021 in protest
  • Yuga Labs' acquisition of the CryptoPunks IP (March 11, 2022) and subsequent grant of commercial licensing rights to holders (August 15, 2022)

Lesson for regulators: Retroactive IP clarification is possible but costly and disruptive. Proactive disclosure requirements at the point of minting/sale would prevent this category of market dysfunction.

Source: BusinessWire -- Yuga Labs Acquires CryptoPunks

3.4 Royalty Enforcement: Structural Failure

The collapse of enforceable NFT royalties represents the most significant failure of the current system. In the 11 of 20 jurisdictions with no statutory resale right, creators depend entirely on smart-contract/marketplace policy -- and that scaffold has eroded:

  • OpenSea's shift to optional creator fees (February 2024) effectively ended reliable royalty enforcement on the largest marketplace
  • Platforms compete on fee structure, creating a race to the bottom that harms creators
  • The ERC-2981 royalty standard (adopted by Ethereum) provides a signalling mechanism but no enforcement
  • The ERC-721C standard attempts on-chain royalty enforcement but requires platform cooperation
  • Smart contract royalties remain contractual/technological mechanisms without statutory backing in any jurisdiction in this study; even in the 5 with a statutory droit de suite (
    EU
    ,
    France
    , Germany,
    UK
    ), that right has not been extended to NFTs

CSPLA finding (June 2025): The French CSPLA identified that non-payment of supplementary remuneration during NFT resales remains a persistent problem due to incompatibility between emission smart contracts and platform contracts. The CSPLA recommended ensuring smart contract compatibility and providing transfer-blocking mechanisms to guarantee payments.

4.1 Mandatory IP Disclosure Requirements

Based on the evidence from litigation, market practice, and regulatory analysis across the 20 jurisdictions, regulators should mandate the following minimum disclosures at the point of NFT sale:

Disclosure ElementRationaleModel Precedent
Explicit statement of what IP rights are (or are not) conveyedAddresses consumer confusion; aligns with consumer protection principlesCSPLA Charter (France, June 2025); JCBA Guidelines (Japan, 2024)
Identity of the copyright holderEnables verification of authorization to mint; prevents unauthorized mintingCSPLA recommendation; Qice v. Bigverse platform-review duty (China); ASCT disclosure (Japan)
Full licence terms in human-readable formatSmart contract code is not a substitute for legally binding, comprehensible termsUSPTO/USCO Joint Report recommendation (March 2024)
Licence terms associated with NFT metadataEnsures terms travel with the token across platformsCSPLA Charter; Liechtenstein TVTG Token Container Model (embed licence in basic information)
Disclosure of resale royalty terms and enforcement mechanismsEnables buyers to understand ongoing creator compensation obligationsSEC enforcement precedent (royalties as Howey factor)
Disclosure of off-chain hosting risksIf underlying work is stored off-chain (IPFS, Arweave, centralized server), the buyer must understand the persistence riskJCBA Guidelines; BCA Guidelines (Japan)

4.2 Minimum IP Terms for NFT Offerings

Regulators should consider establishing minimum terms that all NFT offerings must include. Note that the bracketed example below is illustrative model wording, not a literal code fence:

  1. Clear statement: that purchasing the NFT does not transfer copyright in the underlying work unless expressly stated.
  2. Licence scope: Whether the buyer receives (a) no licence, (b) personal non-commercial display licence, (c) commercial licence, or (d) copyright assignment.
  3. Moral rights reservation: In moral-rights jurisdictions (
    France
    ,
    Japan
    ,
    Brazil
    ,
    India
    ,
    South Korea
    ,
    China
    , Germany), explicit acknowledgement that moral rights are retained by the creator.
  4. Licence duration: Whether the licence is perpetual, limited-term, or tied to the life of the platform.
  5. Licence transferability: Whether the licence transfers with the token on secondary sale -- and, in
    China
    , an acknowledgement that secondary resale is prohibited in practice for domestic collectibles.
  6. Modification rights: Whether the buyer may modify, create derivative works from, or incorporate the work into other works.

4.3 Royalty Enforcement Framework

The collapse of voluntary smart contract royalties demonstrates the need for regulatory intervention. Two approaches merit consideration:

Approach A -- Statutory Extension of Droit de Suite: Extend existing resale right legislation (EU Directive 2001/84/EC, the UK Artist's Resale Right Regulations 2006, French CPI L.122-8 and German UrhG §26) to explicitly cover born-digital artworks sold as NFTs. This would:

  • Provide creators with a legally enforceable resale right independent of platform cooperation
  • Require NFT marketplaces operating as "art market professionals" to collect and remit royalties
  • Create a standardized rate structure (following the existing Directive tiers)

This approach is available in only 5 of 20 jurisdictions today; the other 15 would need to legislate a resale right from scratch.

Approach B -- Mandatory On-Chain Royalty Compliance: Require regulated NFT marketplaces to honour on-chain royalty specifications (e.g., ERC-2981) as a condition of licensing/registration. This would:

  • Leverage existing smart contract infrastructure
  • Create regulatory incentive for platform compliance
  • Complement (not replace) statutory resale rights

Recommendation: Both approaches should be pursued in combination. Statutory resale rights provide the legal foundation; mandatory on-chain compliance provides the enforcement mechanism.

4.4 Trademark Registration and Enforcement Infrastructure

The WIPO Nice Classification update (January 2023) provides the classification infrastructure. Regulators should:

  1. Encourage brand owners to register marks in Class 9 for NFT-authenticated digital goods
  2. Ensure national IP offices accept and process NFT-related trademark applications (e.g.
    UAE
    creators registering IP with the Ministry of Economy)
  3. Develop fast-track dispute resolution mechanisms modelled on WIPO's UDRP for NFT-related trademark disputes
  4. Require NFT marketplaces to implement notice-and-takedown procedures for trademark infringement, reinforced by the platform prior-review duty recognised in
    China
    (Qice v. Bigverse)

4.5 Cross-Border Harmonization Priorities

Given the inherently global nature of NFT markets, regulators should prioritize:

  1. Mutual recognition of IP disclosures: NFTs that comply with disclosure requirements in one jurisdiction should receive presumptive compliance recognition in others
  2. Harmonized definition of "NFT marketplace operator" obligations: Aligning marketplace IP responsibilities across the
    EU
    (MiCA/AMLR),
    UK
    (Cryptoassets Regulations 2026), and the wider study set
  3. Treaty-level resolution of digital exhaustion: Through WIPO processes, establish whether the exhaustion doctrine applies to blockchain-verified unique digital assets -- a question open in every jurisdiction except
    China
    , which has resolved it by banning secondary resale

5. Decision Matrix

5.1 For Regulators: Determining IP Regulatory Approach

START: Is the NFT genuinely unique and non-fungible (substance-over-form)?
  |
  +-- YES --> Does the NFT convey any IP rights beyond token ownership?
  |            |
  |            +-- YES --> Are IP terms clearly disclosed to the buyer?
  |            |            |
  |            |            +-- YES --> Existing IP law adequate; monitor
  |            |            +-- NO  --> MANDATE IP DISCLOSURE (Section 4.1)
  |            |
  |            +-- NO  --> Is this clearly disclosed?
  |                         |
  |                         +-- YES --> Existing IP law adequate; monitor
  |                         +-- NO  --> MANDATE NEGATIVE DISCLOSURE
  |                                    (that the NFT does not convey IP rights)
  |
  +-- NO (fractionalized, large series, fungible) -->
       Does the NFT exhibit characteristics of a financial instrument?
       |
       +-- YES --> Securities/financial instrument regulation applies
       |           (see [deep-research/nft-digital-collectibles/guidance-document/securities-classification](/app/regulations/research/deep-research/nft-digital-collectibles/guidance-document/securities-classification))
       +-- NO  --> Crypto-asset regulation applies (MiCA, FSMA 2023, etc.)
                   IP disclosure requirements still apply

5.2 For Marketplace Operators: IP Compliance Checklist

RequirementPriorityRegulatory Basis
Require creators to attest they hold IP rights to minted contentCriticalCopyright law (all 20 jurisdictions); platform review duty (Qice v. Bigverse, China)
Display IP licence terms prominently on each NFT listingCriticalCSPLA Charter; JCBA Guidelines; USPTO/USCO recommendation
Implement notice-and-takedown for IP infringement reportsCriticalDMCA (US); E-Commerce Directive (EU); CDPA (UK); E-Commerce Law (China)
Honour on-chain royalty specifications (ERC-2981)HighRecommended by CSPLA; potential regulatory requirement
Maintain records of IP attestations and licence termsHighAML record-keeping; consumer protection
Screen for unauthorized use of third-party trademarksMediumTrademark law (all jurisdictions); Hermes v. Rothschild precedent
Provide clear consumer disclosures that IP rights are not the same as token ownershipMediumConsumer protection; USPTO/USCO recommendation
Implement content verification (reverse image search, AI detection)MediumJURI Committee recommendation (PE 737.709); platform best practice

5.3 For NFT Issuers/Creators: IP Structuring Decision Matrix

QuestionIf YESIf NO
Do you want buyers to have commercial rights?Draft explicit commercial licence; couple to token via metadata and smart contractState "personal, non-commercial use only" in terms
Are you in a moral rights jurisdiction (France, Japan, Brazil, India, South Korea, China, Germany)?Acknowledge moral rights retention in licence terms; cannot waive (waivable in writing only in Canada/UK)Consider whether to grant moral-rights-equivalent protections voluntarily
Do you want to enforce resale royalties?Implement ERC-2981 or equivalent; consider ERC-721C enforcement; list only on royalty-honouring platforms; note resale itself is barred for domestic collectibles in ChinaAcknowledge that royalties are voluntary on most platforms; only 5 of 20 jurisdictions have any statutory resale right, none yet extended to NFTs
Is the underlying work stored on-chain or off-chain?If off-chain: disclose hosting location, persistence risks, and what happens if the link breaksIf on-chain: lower persistence risk, but disclose storage mechanism
Do you intend to transfer copyright?Comply with written-instrument requirements of the relevant jurisdiction (US: 17 USC 204(a); UK: CDPA s.90(3); France: CPI L.131-3; India: s.19(1); Brazil: Art. 49; Canada: s.13(4))Default: copyright retained by creator; state this clearly

5.4 Jurisdiction Risk Assessment for NFT IP

JurisdictionIP ClarityCreator ProtectionBuyer ProtectionEnforcement MaturityOverall IP Risk Level
US
Medium-High (post-March 2026 taxonomy)Low (no resale right; royalties unenforceable)Medium (trademark enforcement strong; copyright disclosure weak)High (active litigation)Medium
EU
Medium (JURI study; no legislation)Medium (statutory resale right exists but not extended to NFTs)Medium (consumer protection directives apply)Low (no NFT-specific enforcement actions)Medium-High
UK
Medium-Low (no NFT IP guidance)Medium (resale right exists; waivable moral rights)Medium (Property Act 2025 recognition)Low (no NFT IP enforcement)Medium-High
France
Medium-High (CSPLA Charter)High (strong moral rights; droit de suite; CSPLA recommendations)Medium-High (CPI protections)Low (no NFT-specific enforcement)Medium-Low
GermanyMedium (UrhG framework; Folgerecht debate)Medium-High (inalienable moral rights; resale right)Medium (EU consumer protection)Low-Medium (FG Niedersachsen VAT case only)Medium
Switzerland
Medium-Low (flexible but no resale right)Low-Medium (no resale right; moral rights recognized)Medium-Low (limited NFT consumer-protection framework)Low (no enforcement)Medium-High
Liechtenstein
Medium-High (TVTG Token Container Model can embed licence terms)Low-Medium (no resale right; non-transferable moral rights)Medium (TCM transparency)Low (no enforcement)Medium
Japan
Medium (JCBA/BCA guidelines)Medium-High (strong moral rights; no resale right)Medium (ASCT disclosure requirements)Low (no NFT IP litigation)Medium
Hong Kong
Medium (existing copyright law applies)Medium (moral rights; no resale royalty)Medium (SFC investor warnings)Low (no NFT IP enforcement)Medium
Singapore
Medium (Copyright Act 2021 applies)Medium (no resale royalty; limited licences typical)Medium (MAS consumer guidelines)Low (no NFT IP enforcement)Medium
South Korea
Medium (FSC NFT guidelines; copyright auto-subsists)Medium (inalienable moral rights; no resale royalty)Medium (VAUPA user protections; KFTC dark-pattern rules)Medium (active VAUPA enforcement, not IP-specific)Medium
China
Medium-Low (no copyright transfer; resale banned; platform duty established)Medium (strong owner-side copyright retention; Qice platform duty) but creators cannot monetise secondaryLow-Medium (buyer gets only anti-tampering right; SPP warns of no civil-law ownership of underlying work)Medium (court precedent + SPP guidance)High
Thailand
Medium-Low (statutory gap on NFTs; left to contract)Medium (moral rights; no resale royalty)Medium-Low (SEC focus is exclusionary, not IP)Low (no NFT IP enforcement)Medium-High
India
Medium-Low (NFT generally not itself copyrightable; punitive tax regime)Medium (inalienable moral rights s.57; no NFT resale royalty)Low-Medium (ASCI ad guidelines; Consumer Protection Act)Low (no NFT IP enforcement)Medium-High
Bahrain
Medium-Low (no NFT-specific IP rule; Decree 22/2006 general)Medium (creator retains rights; resale royalty NOT VERIFIED)Medium (Cat 4 contractual disclosure requirements)Low (no NFT IP enforcement)Medium
UAE
Medium (FDL 38/2021; token = certificate of authenticity)Medium (creator retains rights; IP registrable; resale royalty unstated)Medium-High (VARA marketing/disclosure rules)Medium (active VARA enforcement, not IP-specific)Medium
South Africa
Medium (Copyright Act 1978; NFT FAIS-exempt)Medium (moral rights; no droit de suite)Medium (FAIS Code for licensed CASPs; NFT disputes litigated as copyright/trademark)Low (no NFT IP enforcement; copyright/TM litigation route)Medium

6. Emerging Issues and Open Questions

6.1 AI-Generated NFTs and Authorship

AI-generated artworks raise fundamental questions about copyrightability:

  • US
    : The Copyright Office has denied registration for purely AI-generated works (e.g., Thaler v. Perlmutter, D.D.C. 2023); works with sufficient human authorship may qualify
  • UK
    : CDPA s.9(3) provides 50 years of copyright for "computer-generated works" authored by "the person by whom the arrangements necessary for the creation of the work are undertaken"
  • EU
    : No harmonized position; CJEU jurisprudence requires "author's own intellectual creation" reflecting personality
  • Brazil
    : Bill No. 5,005/2025 (introduced 7 October 2025) would amend the Copyright Law to address unauthorised AI-generated digital imitations -- an early legislative signal in this study set

If an AI-generated NFT artwork is not copyrightable, the entire IP licensing framework described in this document may be inapplicable -- there would be no copyright to transfer or licence.

6.2 On-Chain vs. Off-Chain Storage

The legal analysis differs significantly depending on whether the creative work is stored on-chain (part of the blockchain data) or off-chain (linked via URI to IPFS, Arweave, or centralized servers):

  • On-chain: The work is permanently embedded; raises stronger reproduction right arguments; persistence is guaranteed
  • Off-chain: The NFT is merely a pointer; the work may become inaccessible if the hosting service fails; raises questions about what the buyer actually "owns" -- a concern echoed in
    India
    's observation that the metadata/pointer is generally not itself copyrightable

No jurisdiction has addressed this distinction in formal regulation or case law.

6.3 Moral Rights in the Metaverse

As NFTs are increasingly used in virtual worlds and metaverse environments, moral rights doctrines face new challenges -- particularly acute in the many jurisdictions in this study with inalienable moral rights:

  • Right of integrity: If an NFT artwork is displayed in a virtual environment that alters its context, scale, or surroundings, does this violate the creator's integrity right under
    French
    ,
    Japanese
    ,
    Brazilian
    ,
    Indian
    ,
    South Korean
    ,
    Chinese
    , or German law?
  • Right of attribution: How should creator attribution be maintained as NFTs move across platforms and virtual worlds?
  • Right of disclosure: Does listing an NFT on a public marketplace constitute "disclosure" that triggers or satisfies the creator's disclosure right?

These questions remain entirely unaddressed by legislation or case law in any jurisdiction.

7. Verification Notes

Sources Verified (June 2026)

Primary Legal Sources:

  1. USPTO/USCO Joint Report on NFTs and IP (12 March 2024): Verified via USPTO and Copyright Office. Conclusion that NFT-specific IP legislation is not necessary confirmed.
  2. WIPO Nice Classification 12th Edition (January 2023): Class 9 "downloadable digital files authenticated by NFTs" addition verified via Skadden analysis and WIPO classification database.
  3. CJEU Tom Kabinet (C-263/18, December 2019): No digital exhaustion under InfoSoc Directive for e-books. Verified via EUR-Lex.
  4. CJEU UsedSoft v. Oracle (C-128/11, July 2012): Digital exhaustion for software only. Verified via EUR-Lex.
  5. Capitol Records v. ReDigi (910 F.3d 649, 2d Cir. 2018): No digital first sale doctrine in US. Verified via Justia.
  6. EU Directive 2001/84/EC (Resale Right Directive): Royalty rates and caps verified via EUR-Lex. Application to NFTs NOT confirmed as settled law.
  7. European Parliament JURI Committee Study (PE 737.709, October 2022): Existence and key findings confirmed.
  8. Copyright transfer formalities (all 20 jurisdictions): Statutory writing/express-agreement requirements confirmed per the fact matrix -- US 17 USC 204(a); UK CDPA s.90(3); France CPI L.131-3; Canada s.13(4); Brazil Art. 49; India s.19(1); Thailand Copyright Act B.E. 2537; South Africa Copyright Act 1978; China express written licence/assignment; et al.

Case Law: 9. Hermes v. Rothschild (S.D.N.Y., February 2023): Jury verdict for Hermes, $133,000 damages, permanent injunction (June 2023), appeal filed (November 2023). Verified via Skadden, Bloomberg Law, and Center for Art Law. 10. Yuga Labs v. Ripps (9th Cir., 24-879, July 23, 2025): NFTs are "goods" under Lanham Act; reversed summary judgment on confusion. Verified via Baker McKenzie and Ninth Circuit opinion PDF. 11. Nike v. StockX (S.D.N.Y.): Settlement on confidential terms, 29 August 2025. Verified via The Fashion Law and Business of Fashion. 12. Qice v. Bigverse and Wang (Hangzhou Internet Court, 2022): First NFT copyright-infringement judgment (RMB 4,000, 20 April 2022) and "network virtual property" holding (29 November 2022). Per the China entry in the fact matrix; primary court translations not independently re-verified for this refresh.

Regulatory Guidance: 13. CSPLA Charter of Good Contractual Practices for NFTs (June 2025): Verified via Ministère de la Culture and Vie Publique. 14. JCBA NFT Business Guidelines (3rd ed., August 2024): Verified via So & Sato Law Offices and Mori Hamada & Matsumoto. 15. OpenSea creator fee policy shift (optional from February 2024): Verified via The Defiant, Unchained. 16. WIPO Magazine NFT articles (2022): Verified via WIPO.

Items Not Verified / Data Gaps

  • Resale-royalty position in Brazil, Canada, Bahrain, UAE: NOT VERIFIED -- the fact matrix records no statutory resale-royalty provision for these four jurisdictions.
  • Application of EU/UK/French/German resale rights to NFTs: No formal determination by any EU institution, the UK IPO/HMRC, or national courts as of June 2026; the right exists for physical art only.
  • Digital exhaustion for NFTs: No court in any jurisdiction has directly ruled on digital exhaustion specifically for NFT transactions; immaterial in China (resale prohibited).
  • Smart contract as "written instrument" for copyright transfer: Untested in all 20 jurisdictions.
  • Moral rights in metaverse environments: No case law or regulatory guidance identified.
  • Second Circuit ruling in Hermes v. Rothschild appeal: Appeal pending; no decision as of June 2026.
  • China court rulings (Qice, Wang): Sourced from the fact matrix; primary-text translations not independently re-verified in this refresh.

Cross-References

  • US
    -- Securities classification; USPTO/USCO Joint Report; trademark litigation
  • Brazil
    -- Copyright Act 9,610/1998; moral rights; AI-imitation Bill 5,005/2025
  • Canada
    -- Copyright Act s.13(4); waivable moral rights (s.14.1)
  • EU
    -- MiCA NFT exemption; DSM Copyright Directive; Resale Right Directive
  • UK
    -- CDPA 1988; Property (Digital Assets etc) Act 2025
  • France
    -- CPI droit d'auteur; CSPLA Charter; droit de suite
  • Japan
    -- Copyright Act moral rights; JCBA/BCA guidelines; content industry
  • South Korea
    -- Copyright auto-subsistence; K-pop agency IP retention; FSC NFT guidelines
  • China
    -- Network virtual property; secondary-resale ban; Qice v. Bigverse platform duty
  • Thailand
    -- Copyright Act B.E. 2537; statutory gap left to contract
  • India
    -- Copyright Act 1957 (s.19(1), s.57); NFT pointer not copyrightable
  • South Africa
    -- Copyright Act 1978; NFT FAIS exemption; copyright/trademark litigation route
  • UAE
    -- Federal Decree-Law No. 38 of 2021; IP registration with Ministry of Economy
  • Bahrain
    -- Legislative Decree No. 22 of 2006
  • WIPO -- Copyright treaties; Nice Classification; trademark disputes
  • IOSCO -- Market integrity standards
  • Securities classification -- When NFTs become securities
  • Consumer protection -- Disclosure requirements; gaming NFTs
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