Ipr In Cross-Border Enforcement Of Nft Ip
IPR IN CROSS-BORDER ENFORCEMENT OF NFT-RELATED IP
1. Conceptual Background
NFTs (Non-Fungible Tokens) are blockchain-based tokens that certify ownership or authenticity of a digital (or sometimes physical) asset. Importantly:
Buying an NFT does not automatically transfer IP rights
IP rights remain governed by territorial laws (copyright, trademark, design, etc.)
Blockchain is borderless, but IP law is not
This mismatch creates serious enforcement problems when infringement happens across jurisdictions.
2. Key Cross-Border Legal Issues in NFT IP Enforcement
Jurisdiction – Which country’s courts have authority?
Applicable Law – Which copyright or trademark law applies?
Ownership Confusion – NFT ownership vs IP ownership
Platform Liability – Responsibility of NFT marketplaces
Anonymity – Identifying infringers across borders
Enforcement Practicality – Injunctions against decentralized actors
3. Detailed Case Laws (More Than Five)
CASE 1: Hermès International v. Rothschild (MetaBirkins Case)
Facts
Mason Rothschild created and sold NFTs called “MetaBirkins”
NFTs depicted digital versions of Hermès’ famous Birkin bags
Sold on NFT marketplaces to global buyers
Hermès sued in the US for trademark infringement, dilution, and cybersquatting
Legal Issues
Whether NFTs can infringe trademarks
Whether artistic expression protects NFT creators
Cross-border sales to international buyers
Court’s Reasoning
NFTs are commercial products, not just art
Use of “Birkin” created consumer confusion
Digital format does not dilute trademark protection
Global availability did not negate US jurisdiction since harm occurred in the US market
Outcome
Hermès won
Court held NFTs can infringe trademarks just like physical goods
Cross-Border Significance
Sets precedent that global NFT sales can still be restrained by national trademark law
Other countries may enforce similar claims under Paris Convention principles
CASE 2: Nike v. StockX
Facts
StockX sold NFTs linked to Nike sneakers
NFTs were marketed using Nike trademarks
Buyers could later redeem NFTs for physical shoes
NFTs sold to international customers
Legal Issues
Whether NFTs are “digital receipts” or unauthorized branded products
Whether resale doctrine applies
Trademark use in digital tokens
Court’s Observations
NFTs went beyond mere authentication
NFTs used Nike marks for independent commercial gain
Territorial trademark rights apply despite blockchain sales
Status & Impact
Case clarified that NFT platforms cannot rely on first-sale doctrine
Cross-border resale of branded NFTs may violate trademark laws in multiple countries
Cross-Border Angle
Trademark infringement may occur simultaneously in multiple jurisdictions
Brand owners can sue where consumer confusion arises
CASE 3: Dapper Labs Class Action (NBA Top Shot)
Facts
Dapper Labs sold NBA Top Shot NFTs
Buyers from various countries
NFTs depicted NBA player highlights (copyrighted content)
Dispute over ownership, securities law, and IP control
IP Issues
Buyers believed they “owned” moments
IP licenses were limited and revocable
Centralized control over blockchain
Legal Importance
Courts emphasized license terms over NFT ownership
NFT ≠ copyright ownership
IP rights remain with licensors
Cross-Border Implications
International buyers subject to US-drafted license terms
Enforcement relies on contract law + copyright law
Raises issues of consumer protection across borders
CASE 4: Miramax v. Quentin Tarantino
Facts
Tarantino planned to auction NFTs based on Pulp Fiction scripts
Miramax claimed ownership of underlying IP
NFTs were intended for global sale
Legal Issues
Whether NFT rights were included in older contracts
Interpretation of “reserved rights”
Digital exploitation of copyrighted works
Court’s Reasoning
NFTs are a new form of exploitation
Existing IP agreements may not automatically cover NFTs
Contract interpretation governs NFT IP ownership
Cross-Border Significance
NFTs sold globally could infringe IP in multiple jurisdictions
Courts must adapt old contracts to new technologies
CASE 5: DC Comics v. Unauthorized Batmobile NFTs
Facts
Third parties minted NFTs featuring Batmobile designs
NFTs sold across international platforms
DC owns design rights, copyright, and trademarks
Legal Issues
Whether minting NFTs infringes copyright and design rights
Unauthorized reproduction in digital form
Legal Outcome
Courts recognized NFT minting as reproduction and communication to the public
Infringement occurs regardless of medium
Cross-Border Enforcement Problem
NFTs accessible worldwide
DC must enforce rights country-by-country
No single global IP court exists
CASE 6: Getty Images v. Stability AI (Relevant by Analogy)
Facts
AI models trained on copyrighted images
Outputs minted as NFTs by third parties
Training and minting occurred across borders
Relevance to NFTs
NFTs minted from infringing AI-generated works
Questions of indirect copyright infringement
Enforcement across jurisdictions with different fair-use standards
Cross-Border Significance
NFT marketplaces may face liability if NFTs embed infringing content
IP owners must litigate in multiple jurisdictions
4. Enforcement Challenges Across Borders
(a) Jurisdiction
Courts rely on:
Place of harm
Location of consumers
Targeting of a specific market
(b) Applicable Law
Copyright: Berne Convention (territorial enforcement)
Trademark: Paris Convention + national laws
Contracts: Choice of law clauses
(c) Marketplace Liability
NFT platforms may be:
Direct infringers
Secondary infringers
Protected under safe-harbor regimes (varies by country)
5. Key Legal Principles Emerging
NFTs are not IP rights
Minting = reproduction
Selling NFTs = commercial exploitation
Territorial IP laws still apply
Smart contracts do not override national laws
6. Conclusion
Cross-border enforcement of IP rights in NFTs remains fragmented and complex. While blockchain technology is global, IP enforcement remains local. Courts worldwide are increasingly willing to apply traditional IP doctrines to NFTs, but enforcement still requires multi-jurisdictional litigation, contractual clarity, and cooperation from NFT platforms.
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