U.S. Patent and Trademark Office and U.S. Copyright Office conclude joint study on non-fungible tokens
By Ferraiuoli LLC
The U.S. Patent and Trademark Office and the U.S. Copyright Office published the results of their joint study on the intellectual property (IP) law and policy implications of non-fungible tokens (NFTs). The Offices conducted the study in response to a June 2022 request from then-Chair of the Senate Committee on the Judiciary Subcommittee on Intellectual Property Patrick Leahy and Ranking Member Thom Tillis.
During the joint study, the Offices solicited public comments via a notice of inquiry, held three public roundtables, and examined existing literature and case law.
In their report, the Offices acknowledged commenters’ views that NFTs may enable artists to secure remuneration for downstream resales of their works, aid trademark owners in expanding their brand appeal, and play a supportive role in the management, transfer, or licensing of IP rights. They also recognized concerns that buyers and sellers do not know what IP rights are implicated in the creation, marketing, and transfer of NFTs, and that NFTs may be used to facilitate copyright or trademark infringement.
The Offices concluded, however, that existing statutory enforcement mechanisms are currently sufficient to address infringement concerns related to NFT applications, and that changes to IP laws, or to the Offices’ registration and recordation practices, are not necessary or advisable at this time. Rather, public education initiatives and product transparency play an important role in ensuring greater awareness and understanding about NFTs.