Navigating IP Challenges in the NFT Marketplace: A Comparitive Case Study Approach

Abstract

Since 2020, Non-Fungible Tokens (NFTs) have coursed in popularity, creating legal complexities, particularly in trademark infringement within the metaverse. This article investigates on these issues, focusing on how NFTs, built on blockchain technology, and intellectual property intersect with trademark law. The purpose of this article is to explore various panaceas for NFT creators to influence well-known brands while respecting trademark rights. This article is structured into four parts: Firstly,
it deals with the Fundamentals of NFTs, Second, part explores the intersection of NFTs and IP rights, Third, part deals with a through case analysis approach, this article examines recent NFT-related trademark infringement cases, evaluates existing legal frameworks, and proposes regulatory reforms to safeguard IP rights while fostering innovation. Fourth, part deals with a comparative assessment of multinational trademark legislation vis-à-vis Indian IP frameworks, and proposed regulatory reforms.
Key findings highlighting the need for clear guidelines and robust legal frameworks to address the unique challenges posed by NFTs. The findings reveal that current trademark laws are often inadequate for addressing the unique challenges posed by NFTs. This article suggests reforms, including updating the “likelihood of confusion” test, clarifying fair use principles, and implementing stricter verification processes in NFT markets. The article highlights the need for more specific legal frameworks to
stabilize intellectual property rights with artistic freedom in the digital age. These reforms aim to promote a secure and innovative environment for artists, brands, and consumers, ultimately contributing to a more resilient digital future.