The legality of selling NFTs based on original artwork is not entirely clear. For one thing, NFTs is an unauthorized copy, but they do not change the work's meaning. While some crypto enthusiasts argue that minting and selling an NFT is no more a crime than taking a photo of the Mona Lisa, this argument is not entirely persuasive in court. If you set an NFT as your profile picture, you're likely to be caught in a legal gray area.

NFTs pose many legal issues, including copyright theft. Owners should make sure their brands are protected from copyright thieves and take measures to protect their intellectual property. Copyright theft is a significant problem in the NFT industry, as it has resulted in numerous legal disputes. 

<img class="aligncenter" src="https://media.wired.com/photos/622bde93d53a49d05c484009/16:9/w_2400,h_1350,c_limit/NFTs-Don't-Work-They-Way-You-Think-Gear-1239020052.jpg" alt="Copyright Theft Is A Problem For NFTs" width="549" height="309" />
<h2>Digital Nature Of NFTs</h2>
Unlike the tangible nature of works of art, NFTs are digital, and because they can be duplicated on the Internet, they raise issues relating to ownership and copyright law. While most people may not understand these issues, they are important for anyone investing in NFTs. You also need to know how the technology can work before committing to a particular product. The following are some examples of the issues that can arise when NFTs are used to purchase trademarked works.

First, NFTs are metadata files. While the owner owns the NFT of a <a href="https://en.wikipedia.org/wiki/Babe_Ruth">Babe Ruth</a> baseball card, the corresponding copyright of the Pikachu card does not belong to the owner. A derivative anime cartoon created from the Pikachu card does not belong to the owner. In similar ways, the owner of an NFT does not own the original underlying item or its copyright.

Tokenization is a problem for NFTs, particularly when the original works are public. Tokenization requires the author to grant consent to the copyright holder. In addition, separating an NFT token from the original work alters the nature of the work. Since copyright protection is based on the whole work, it is impossible to separate a copyrighted work from the NFT token.

Whether an NFT violates copyright protection is illegal or not is another issue. Infringement is when someone uses the work without authorization. This may include printing, placing in a digital frame, or sharing it on social media forums. A digital work is a part of the <a href="https://www.cryptoknowmics.com/news/ethereum-merge-postponed-till-later-than-june-exact-date-unknown">Ethereum</a> blockchain, and the transactions in the blockchain are public. Despite the legal complications of copyright theft, NFTs remain a viable solution.
<h2>Lack Of A Strong Legal Framework In The NFT Market</h2>
Although NFT is a fairly new technology, many users still don't understand copyright protection, and they have difficulty figuring out how to protect their intellectual property. This is especially true for computer code, which can be difficult to assign. In addition, a lack of a legal framework in the NFT market makes copyright theft even more likely.

Artists, creators, and investors are concerned that the lack of a strong legal framework will make it easier for criminals to exploit their intellectual property rights. In fact, the legal actors are more interested in molding the crypto art world into the traditional art world, which has many inequities and limitations. One strain of thinking suggests removing artists' rights to royalties. If the NFT market ever reaches a mature state, it will need to eliminate these agreements. Instead, NFTs should be treated as digital personal property, and investors can easily access them.

One of the biggest issues with the NFT market is that buyers are often not aware that they are purchasing copyrighted artwork. Moreover, they assume they are buying the underlying work of art without knowing that they are actually buying the metadata associated with the copyrighted work. These purchases often only grant the purchaser a token of the copyrighted art, but the original creator retains exclusive copyright rights.

While it is possible to sue for infringement of a copyright in an NFT, this is highly unlikely to happen, as the transaction is often purely virtual. The owner of an NFT may also not be able to bring a claim if another person created it. Moreover, in some cases, the transaction can be fraudulent. The NFT platform may be liable for copyright infringement in such a scenario.
<h2>Potential For Piracy</h2>
As the market for non-fungible tokens explodes, the question of piracy is inevitable. But how big of a problem is NFT piracy? The Italian music industry's Digital Content Protection agency recently announced the creation of a new unit to monitor unlicensed activities. The move comes in the wake of the HitPiece debacle, in which users copied artwork from the record industry and arguably exploited publicity and trademark rights.

Piracy is rampant on the NFT market, and NFT artists must be aware of this potential snatching before it becomes a problem. While many artists are concerned about piracy, the truth is that NFTs are not copies of the original artwork.

But even the best NFTs are vulnerable to piracy. One startup sued for copyright violations and allegedly created NFTs by using their music. Another company, OpenSea, said it is actively fighting plagiarism. Another anti-piracy company called Digital Content Protection is sweeping web 3.0 resources to root out bad actors and rug-pullers. While it's too early to tell what NFTs will do, it's worth considering.

While NFTs offer a new outlet for artists and creatives, they have also made it easy for pirates to mint knockoff copies with <a href="https://www.cryptoknowmics.com/news/chandler-arizona-accepts-cryptocurrency-via-paypal">cryptocurrency </a>and sell them to unsuspecting collectors. Most of these knockoff NFTs are identical to the real thing, so they're difficult to detect. The shady actors only need a single unwitting buyer and a substantial payment to disappear into anonymity.
<h2>DMCA Takedown Requests for Copyright Theft</h2>
DMCA takedown requests are a form of dispute resolution involving digital content. This United States law applies to online games, videos, and other NFT content. It allows copyright owners to file these claims against the site responsible for the content. The DMCA is an important tool for copyright owners since it protects them from infringement by other parties. NFTs take advantage of DMCA takedown requests to remove infringing content from the Internet.

To combat the problem of infringement, NFT creators must file DMCA takedown requests to the right parties. Artists must file takedown notices to ensure that their copyrights are properly transferred to the platforms. Tokenization of other artists' work is an ongoing trend, but Belton believes this trend is not likely to last, as NFTs will always remain a separate unit.

NFTs have also been the source of plagiarism since early 2021. Last fall, artists started a Twitter community called NFTTheft, highlighting fraudulent listings and copyright theft. The administrator requested anonymity because of fear of doxxing and crypto-evangelist backlash. 

To protect artists' rights, NFT creators should first obtain permission from the copyright owner. Under the law, copyright ownership includes bundles of rights. This includes reproducing, preparing derivative works, distributing copies, and publicly performing and displaying work. In the case of music, the NFT creator would have to obtain permission from the musician to sample the work or embed the remix on their website. Any violation of these exclusive rights would constitute a copyright infringement.

Copyright Theft Is A Problem For NFTs

As the market for non-fungible tokens explodes, the question of copyright theft is inevitable. But how big of a problem is NFT copyright theft?

Oluwademilade Afolabi is a freelance writer and editor passionate about blockchain technology and the health industry. He is a 6th year medical student, and has worked with various companies and blogs since the blockchain revolution began.

Copyright Theft Is A Problem For NFTs

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