TL;DR
- A U.S. government study concluded that current intellectual property laws are sufficient to address concerns related to NFTs.
- The study was requested by Democratic senators in June 2022 and conducted by the United States Patent and Trademark Office (USPTO) and the U.S. Copyright Office.
- Specific legislation could be premature at this time and could hinder the evolving development of these emerging products.
A U.S. government study has concluded that specific legislation is not needed for NFTs, as current intellectual property laws are adequate to address concerns related to these digital assets.
This study, requested by former Democratic Senator from Vermont, Patrick Joseph Leahy, and Democratic Senator from North Carolina, Thom Tillis, in June 2022, was conducted by the United States Patent and Trademark Office (USPTO) and the U.S. Copyright Office.
During the study process, the USPTO and the Copyright Office held three public roundtables and solicited comments from stakeholders to gather information on the topic. While some stakeholders expressed concerns about trademark infringement on NFT platforms, the majority considered current laws sufficient to address these concerns.
The study found that while trademark and copyright infringement is common on NFT platforms, current intellectual property laws are sufficient to address these concerns. Therefore, no changes to current legislation or registration and recording practices are deemed necessary.
New Legislations Will Be Avoided to Not Hinder the Development of NFTs
Furthermore, stakeholders expressed concerns that specific legislation could be premature at this time and could impede the evolving development of NFT-related technology. Although there is some ambiguity in the regulation of these products in the United States, as demonstrated by the Impact Theory case in 2023, which was the first enforcement action related to non-fungible tokens by U.S. regulators.
The study and resolution provide clarity and guidance to market participants and reinforce confidence in the existing legal framework for these digital assets.
