What are NFTs and can they be registered under Canadian trademark law?
Have you been struggling to understand NFTs? If yes, don’t worry! You’re not the only one.
Luckily, I managed to undertake some research on NFTs to find out what they are, what they do, how they can be of benefit and most importantly how can you protect legally protect your brand under Canadian trademark law. This may be long but it is definitely worth a read if you are a musician, digital artist, poet, author, meme maker (whatever they’re called) or any kind of digital creative.
A Non Fungible Token (NFT) is a type of cryptocurrency, similar to a bitcoin, however, what sets it apart from a bitcoin or other cryptocurrency is that instead of being valued in money, it contains assets such as; digital art, music, video games and even memes, pretty much everything that is available in digital form even this post.
Furthermore, NFTs are also encoded using the same software as other cryptocurrencies. Too much information? Hang in there! Here comes the part fun part, the part you are anticipating (Money, money, money).
According to Forbes, @beeple_crap created the most famous NFT; "EVERYDAYS: The First 5000 Days” which sold at Christie’s for a record-breaking $69.3 million."
Why are NFTs all of a sudden so popular?
NFTs are allowing content creators a unique opportunity to monetize their creations without having to rely on exhibitions or auctions to sell their art. Instead, artists can sell their art as NFTs, they can secure more profit and even program royalties. So when their creation is sold to a new owner they can still receive a percentage and through block chain technology they are able to trace how far their art is sold.
$224 million has already been spent on the crypto collectables and digital artists are understanding the value of their work and the importance of legally protecting their digital art business.
Can they be trademarked in Canada?
Grimes (Canadian musician) releases NFT collection that sells out. Tom Brady, The Chainsmokers, The Upper Deck Company, and The Andy Warhol Foundation all recently filed for trademarks associated with non-fungible tokens as according to karanaip.com if you wish to have ownership of your brand name you must register it’s trademark just like any other business.
Canadian trademark laws can be overwhelming this is why I wrote an eBook to answer some of the most important trademark questions.
Why you must file for a trademark to protect your art business.
As NFTs are rising in popularity digital art owners are now also prioritizing the importance of protecting their intellectual property. Artists are realizing the worth and potential of their creations and turning their hobby into a business, they are also considering taking the legal steps that will protect their brand and artwork.
There has been an increase in trademark filings of NFTs particularly in the United States. Artists are also realizing that they do no just need to protect their art through copyright, they must protect their brand and brands are protected by trademark. According to GerbenLaw, entities like the Chainsmokers and Andy Warhol’s estate have filed trademark applications claiming an intent to offer NFTs in commerce soon.
If you are a digital creator you must consider the value NFTs have to offer your creation and must protect your assets accordingly.
Looking for a trademark lawyer to protect your #digitalcreative #business? Contact Belot Trademark Law today.