The relationship between patents and innovation is vital. With the assurance of an exclusive legal monopoly on their invention, inventors may be more motivated to devote the time, money, and effort to develop their ideas if they can expect to be paid for their efforts. The technology covered by a patent is also accessible to the public and may be utilized by anybody once the patent period ends, encouraging further invention. There is a risk that current patents may prevent new inventions from being developed, therefore stifling innovation.
As a result, it’s no surprise that the patent community often discusses new technologies and phenomena, such as NFTs (Non-Fungible Tokens). What about NFT patents? We’ll put aside the topic of whether or not existing patents on NFT-related technologies may impede its development and usage.
Non-Fungible Token (NFTs)
NFT is a digital certificate of authenticity for digital artwork that serves as a non-fungible token. Because NFTs live inside a blockchain, primarily Ethereum, they are one-of-a-kind and cannot be reproduced. Since NFTs can be readily monitored, their legitimacy, history, and owners may be independently verified.
Because it’s unique and can’t be replaced by anything else, it’s described as “non-fungible.” Consider the original artwork, the Mona Lisa. The original artwork cannot be exchanged for a Mona Lisa poster or a picture found on the internet. A single copy of the original artwork exists, and it belongs to no one else. NFT is evidence of the uniqueness of the original artwork, even if there are tens of thousands of digital copies.
Eligibility for a Patent protection
An NFT is used at one end of the spectrum to keep art, music, films, or other material on a blockchain. The rights to that property are transferred to another entity by distributing a token uniquely identified with that entity.
On the opposite end of the scale, tokens are used in new apps that provide new functionality rather than merely using blockchain technology. The patentability issues, particularly patent eligibility, differ depending on where the specific NFT is located on the spectrum.
Is it possible to Patent NFT innovations?
We will begin to see NFTs employed in mainstream business as their usage grows more widespread. Nike is the most acceptable illustration of this. The well-known shoemaker has been granted a patent that blurs the actual and virtual worlds.
Nike’s mix of safeguards enables it to profit from both physically made and digitally created sneakers. A digital shoe may be developed in the actual world, or a digital shoe could be made in the real world. You can learn from Nike’s patent award that it’s possible to get a patent for an NFT-related invention. However, you still need to meet the basic requirements to get a patent. The invention must be new or novel, useful, and not obvious. It must also be patentable.
Although many NFT patent applications have been filed, it is still challenging to get a patent for an NFT. To make your NFT patent application more successful, it is usually best to tie it to a physical invention. Because this makes your NFT more tangible and less of an abstract idea, it may be easier for you to get a patent on it.
Is it feasible to buy or sell a Patent as a non-fungible token (NFT)?
It is possible to apply an NFT to any digital object, such as a painting, song, or even a game or film. In light of everything we’ve discussed, you should now have a good grasp of the concept of NFTs and the types of artwork that qualify as NFTs. Nevertheless, let you think and envisage more clearly with the aid of your brain’s intelligence.
As an NFT, a patent may be yours. Once the patent rights are transferred, the NFT owner will be the only owner of that Patent. Keep in mind that even if a patent is far beyond its expiration date, you may still claim ownership. Imagine owning the patents that radically revolutionized the world and making a fortune from them. You can never run out of patents for anything from televisions to bulbs to automobiles to the internet; it’s just endless.
Although these patents are now out-of-date, and you can no longer enjoy a monopoly on them, the patents are still valuable and may be gathered in the form of NFT. You may prevent others from utilizing a patent that you purchase if it is issued and active (not expired).
Conclusion
In cryptocurrency, the rule is to “never risk anything you are not prepared to lose.” When designing NFTs, creators should use the same attitude. NFTs provide an exciting new way to communicate with and gain new followers in a new market while earning some money. As an artist or brand owner, you must remember that you are also risking your intellectual property with unforeseeable and unpredictable repercussions.
Meanwhile, artists and enterprises interested in participating in these marketplaces should proceed cautiously and, as always, be conscious of the hazards associated with intellectual property ownership.
This article is not intended to provide legal advice and does not constitute an attorney-client relationship. This overview is not intended to offer a conclusive legal opinion on any particular factual scenario. IP experts like HHS lawyers and legal consultants specialize in dealing with cases relating to the infringement of Intellectual Property. You can contact us for further consultation.
