[Law firm Veat TIP] NFT Legal Guide 'What happens to perks when an NFT is resold?'

Recently, the NFT market is expanding into various areas, from digital art to music and virtual real estate. In particular, the provision of NFT perks and resales presents new opportunities and challenges for both creators and collectors. The NFT sales market is rapidly evolving, and the provision of NFT perks and resales provides many opportunities for creators and collectors. However, at the same time, the importance of legal risk management is also increasing. 

Law firm Veat’s TIP team provides legal guidance related to NFT perks. The following is Law firm TIP team FAQ created based on frequently asked questions to help with a basic understanding of legal issues related to NFT sales.  

For more detailed advice or legal services for individual situations,  please feel free to contact Law firm Veat TIP team.

Q1: What precautions should be taken when providing NFT perks?
A1: NFT sellers have a contractual obligation to provide the perks as stated in the NFT product description. The promised perks should be provided through reasonable means and in a timely manner. Therefore, it is important for NFT sellers to explain the details of the perks as much as possible to avoid any misunderstanding, 

Q2: Are NFT perks valid when resold?
A2: The validity of NFT perks depends on the conditions stated by the seller in the product description. It is important to clearly state the conditions for the perks, such as when they will be provided, who is eligible, and the duration.

Q3: What should you do if it becomes difficult to provide the promised perks?
A3: If you are unable to provide the promised perks, you should notify the buyer as soon as possible, offer alternative perks, or reach an agreement. Failure to provide the promised perks may result in damages or, if recognized as intentional, may subject you to criminal liability for fraud. You may also be subject to account suspension or blocking by the exchange. In some cases, legal liability may arise, so it is advisable to consult with a legal professional in advance. 

Q4: What should you do when a legal dispute arises regarding NFT perks?
A4: Because the validity of NFT perks can be judged from various perspectives, if an NFT-related legal dispute arises, you should immediately consult with a professional with a deep understanding of NFTs and related advisory experience. 

Law firm Veat’s TIP team boasts unparalleled expertise in legal issues related to NFTs. We provide legal advice and litigation support based on deep expertise in emerging technology fields such as copyright, intellectual property protection, NFTs, metaverse, and games. Led by Oh Seung-jong, the top copyright specialist who has handled the largest number of copyright cases through litigation or consultation over the past 25 years, we have resolved complex legal issues that content business operators face. We provide essential advice and support to minimize legal risks that may arise when operating businesses in emerging technology fields such as NFTs, intellectual property rights, and the metaverse.