[Law firm Veat TIP] Mandatory reading before NFT creation, the difference between assignment of intellectual property rights and permission for use.
Article posted in 2024-02-16 17:50:16 | VEAT
Recently, various companies have begun actively pursuing NFT businesses by forming NFT project teams, and with continued interest and investment in NFTs and related technologies, various legal issues are arising. Because NFT businesses and related technologies face new and complex legal and regulatory environments, companies preparing for NFT businesses must necessarily confirm whether there are any legal risks, whether they are complying with regulations, and whether they are infringing on intellectual property rights.
Below are frequently asked questions regarding intellectual property rights assignment contracts and usage permission contracts related to NFT creation. For any additional questions, please feel free to contact the Law firm Veat TIP team!
I heard that recently, a famous artist's work was converted into an NFT without permission, causing a major issue. I'm also interested in converting my work into an NFT as an artist, but this case makes me worried. How can I create a work as an NFT without legal problems?
▶ Hello. With the expansion of the NFT market, copyright infringement issues are occurring frequently. Copyright is an important element that must be considered when creating an NFT. Before creating another person's work as an NFT, you must necessarily go through the procedure of obtaining permission to use from the copyright holder or assigning the copyright.
So, what is the difference between copyright assignment and usage permission contract?
▶ Copyright assignment means the copyright holder completely transfers the copyright to another person. In this case, the assignee becomes the new copyright holder, and the original copyright holder no longer has copyright ownership. On the other hand, usage permission (license) is when the copyright holder retains the copyright but grants another person the right to use the work under specific conditions.
Must a copyright assignment contract be in writing? Is it possible verbally?
▶ According to Korean copyright law, copyright assignment can be done verbally, but it is advisable to prepare a written contract to prevent disputes and clarify the scope of the assignment. Especially in the case of digital transactions such as NFTs, where transactions may occur internationally, a written contract is even more important. Some countries, such as the United States, require written contracts.
What should I do if a dispute arises regarding copyright?
▶ When a copyright dispute arises, it is important to receive professional legal advice from a lawyer with extensive experience in copyright disputes. The TIP team at Law firm Veat has extensive experience and expertise in copyright and intellectual property protection, as well as various emerging technologies such as NFTs, metaverse, and games. We can proceed with appropriate responses to copyright disputes, thereby effectively protecting our clients' intellectual property and providing strategic advice to resolve disputes.