Global fintech and funding innovation ecosystem

Landmark Legal NFT Decision Favours Intellectual Property Owners

Herbert Smith Freehills | Sue Gilchrist, Aaron Hayward, Byron Turner and Joshua Sanchez-Lawson | Feb 10, 2023

Freepik vectorjuice intellectual property and brands - Landmark Legal NFT Decision Favours Intellectual Property Owners

Image: Freepik/vectorjuice

The Manhattan federal jury's decision suggests registered brands can be protected against NFT infringements

  • Hermès has succeeded in its case of trade mark infringement against non-fungible token (NFT) artist Mason Rothschild. This was the first US trial considering the enforceability of intellectual property rights against the creator of NFTs. The outcome represents a win for IP owners in the fight for protection of their brand, and offers a cautionary tale for creators of NFTs.

See:  NFT Use Cases are Establishing New Legal Frontiers

  • In late 2021, digital designer Mason Rothschild created 100 'MetaBirkins'. These were NFTs featuring stylised digital depictions of the Birkin bag. The first MetaBirkin to be auctioned sold for $40,000.
    • Birkins are highly exclusive handbags, valued in the tens-to-hundreds of thousands of dollars
    • Hermès filed a complaint against Rothschild in New York, alleging various causes of action including registered trademark infringement and other claims such as trademark dilution, common law trademark infringement and cybersquatting on ‘metabirkin’ domain names.
    • Rothschild claimed in defence that the MetaBirkins were works of art – artistic commentary on the cultural status of the iconic handbag and constituted a lawful use of Hermès’ IP under protections in the US for artistic expression.
    • Decision: A Manhattan federal jury found in favour of Hermès, awarding damages. Hermès had sought damages to (in part) compensate for losses resulting from the impact on its plans to enter the NFT market itself.

See:  A Litmus Test for the Future of Branded NFTs: Starbucks new Web3 Loyalty Program

  • Going forward: Brand owners should use this decision as an opportunity to reconsider their trademarks and the protection they offer over the digital aspects of their business. This is particularly important for brands that want to use NFTs or other digital assets to engage consumers, or simply prevent third parties using their brands to do the same.

Continue to the full article --> here


NCFA Jan 2018 resize - Landmark Legal NFT Decision Favours Intellectual Property OwnersThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Landmark Legal NFT Decision Favours Intellectual Property OwnersFF Logo 400 v3 - Landmark Legal NFT Decision Favours Intellectual Property Ownerscommunity social impact - Landmark Legal NFT Decision Favours Intellectual Property Owners

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - Landmark Legal NFT Decision Favours Intellectual Property Owners




 

Leave a Reply

Your email address will not be published. Required fields are marked *

9 − 1 =