The U.S. government has released a report stating that there is currently no need to change intellectual property (IP) laws in the United States, despite the prevalence of piracy and IP infringement on nonfungible token (NFT) marketplaces.
On March 12, the U.S. Copyright Office and Patent and Trademark Office (USPTO) conducted a joint study on the implications of IP law and policy in relation to NFTs. The study acknowledged that NFT technology does not have the ability to prevent unauthorized copying and highlighted the prevalence of trademark infringement and misuse on NFT marketplaces.
However, despite these findings, the agencies concluded that no changes to IP laws are necessary or advisable at this time. The report explained that if an NFT contains or links to an unauthorized copy of a copyrighted work, it would be subject to copyright law in the same way as any unauthorized reproduction or display. The report also noted that there are existing enforcement tools available to address NFT-related infringements, just as there are for other online infringements.
Kathi Vidal, the Under Secretary of Commerce for Intellectual Property and USPTO Director, acknowledged that NFTs offer unique opportunities for creators to leverage their IP rights but also present new challenges in terms of security. The report also raised concerns about consumer confusion regarding IP rights and the legal status of smart contracts. However, it concluded that these concerns would be better addressed through education and consumer protection rather than changes to IP laws.
The report did not propose any specific use of NFTs or blockchain technology in U.S. patent and trademark registrations but stated that their potential will continue to be explored.
The study and report were commissioned in 2022 by an IP subcommittee of the U.S. Senate Judiciary Committee.
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