Offering copyright protection for non-fungible tokens in India: Legal frameworks and strategies

Abstract

Non-fungible tokens have caused a complete revolution in the digital space regarding how one thinks of unique assets such as pieces of art, music, and digital collectables, and how one trades them. Originating from blockchain technology, NFTs first came into existence in the year 2014 on a platform known as “Counterparty.” Since then, they have grown as an influential part of the digital economy. NFT is nonfungible, each token is unique and cannot be replaced-which results in unprecedented possibilities and issues in the digital world. However, with the increasing demand for NFTs, several legal issues have emerged particularly in India, where the laws are still underdeveloped. As NFTs are representations of copyrighted works primary issues arising from NFTs are also related to Copyright. Ambiguities with NFTs are misapprehension over ownership, the challenge of managing and licensing NFTs using smart contracts, and the risk of unauthorized minting of copyrighted materials. This paper addresses these critical issues evaluates the current legal status of NFTs in India and explores their intersection with copyright laws. The focus is particularly on buyers' rights, including ownership complexities, the management of rights through licensing and assignments, and the issues around copyright infringement. The research highlights the urgent need for a legal framework for NFTs, delves into the intricacies of NFT ownership, transfers, and licensing, examines the challenges of unauthorized minting and the enforcement of buyers' rights and offers possible solutions.