How Intellectual Property Rights Can Complicate NFT Markets
Insights August 18, 2021
Over two decades ago, Lawrence Lessig famously declared that “code is law,” a maxim that finds fresh relevance with nonfungible tokens, or NFTs, for digital artwork and other intellectual property capturing headlines recently.
Recent highly publicized sales include $69 million paid for an NFT associated with a piece of digital art titled “Everydays: the First 5000 Days” sold by auction house Christie’s on behalf of Mike Winkelmann, the artist more popularly known as Beeple; $2.9 million paid for an NFT of Jack Dorsey’s first tweet on Twitter; and $5.4 million paid for source code originally used to create the World Wide Web written by Sir Tim Berners-Lee.
While the hype has been met with equal parts skepticism, as with cryptocurrency, their close cousin in the blockchain family of technologies, the interest in NFTs and associated valuations may wax or wane, but they are likely here to stay in some form.
For those participating in the market for NFTs, the maxim “caveat emptor” is the order of the day.
Sam advises clients on corporate acquisitions and disposals, corporate finance, corporate and partnership structuring and shareholder, operating and buy-sell arrangements, general corporate matters, fine art and cultural property, supply, distribution, and consignment and inventory management arrangements, and other commercial transactions. Read more about Sam Miller here.
Attorney Advertising. This document is not intended to be and is not considered to be legal advice. Transmission of this document is not intended to create, and receipt does not establish an attorney-client relationship. Prior results do not guarantee a similar outcome.
