• The article discusses the need for better policy to protect intellectual property rights when it comes to non-fungible tokens (NFTs). It emphasizes the importance of U.S. IP rights and how NFTs can be used to create, use, and monetize IP in new ways.
• The article is written by Diana Stern, general counsel at Palm NFT Studio, who argues that treating all NFTs as financial assets will compromise America’s position as a gold standard of IP protection and enforcement.
• Stern calls for policy makers to prioritize IP interests when it comes to NFTs and encourages creators and brands to capitalize on their rights in innovative ways.
What Are Non-Fungible Tokens?
Non-fungible tokens (NFTs) are digital assets that are unique, indivisible, and non-interchangeable. They are stored on blockchains such as Ethereum or Tezos and can represent anything from artwork to digital collectibles to real estate deeds. NFTs have become increasingly popular over the past year due in part to the rise of decentralized finance (DeFi) protocols like Uniswap and Compound Finance that enable users to trade these assets with ease.
Why Are Intellectual Property Rights Important?
Intellectual property (IP) is a critical part of the US economy – industries that intensively use IP protection account for over 41% of US GDP and employ one third of the total workforce. An effective IP regime incentivizes creators and companies to generate new IP, so protecting these rights is essential for economic growth and development in the US.
The Threat Posed By Treating All NFTs As Financial Assets
Treating all NFTs as financial assets would damage their commercial prospects because it would compromise American’s position as a gold standard of IP protection and enforcement. This could discourage artists from creating content through this medium or prevent brands from engaging with their audiences using NFT platforms, limiting the creative possibilities offered by this technology.
Encouraging Creators To Capitalize On Their Rights Through NFT Platforms
Diana Stern believes that policy efforts should encourage creators and companies to capitalize on their rights through new platforms such as NFT studios so they can benefit from its potential while protecting U.S.’ position as an international leader in protecting intellectual property rights holders who innovate with this technology.
Conclusion: The Need For Better Policy To Protect Intellectual Property Rights In The Crypto Space
Ultimately, there is a need for better policies that prioritize intellectual property interests when it comes to non-fungible tokens (NFT). Treating all these tokens as financial assets will compromise America’s position as a gold standard of IP protection which could damage both commercial prospects for this emerging technology but also discourage artists from creating content through this medium or prevent brands from engaging with their audiences using these platforms – limiting the creative possibilities offered by this technology