The Metaverse is a network of 3D virtual worlds focused on social connection. A non‐fungible token (“NFT”) is a non‐interchangeable unit of data (token) stored on a blockchain, a form of digital ledger, that can be sold and traded because of its unique characteristics. Because all NFTs are one of a kind, their ownership is easily identified, incontestable, and guaranteed by blockchain technology. NFTs can be digital (pictures, GIFs, songs, videos) and tangible (deeds, tickets, legal documents, and many more). If you create an NFT (sometimes referred to as “minting”), your status as the creator and owner is verified. You even can earn royalties with every subsequent transfer through Smart Contracts.

Ethereum is an open access decentralized system that extends blockchain concepts. It is more than just e‐payments. It includes marketplace, games, apps, and much more!

Decentraland is also a blockchain‐based 3D virtual world with ownership of digital content. As a 3D virtual world browser‐based platform, it allows users to buy virtual plots of land in the platform as NFTs.

Some companies are using NFTs to commodify assets, build their brands, and combat counterfeits already. Nike, for instance, is using its CryptoKicks to ensure authenticity of genuine pair of shoes by assigning a cryptographic token to signify the shoe’s ownership and to create additional brand value.

If you are creating a new copyright work or considering licensing your existing work, consider the possibility of using NFT‐related contractual clauses. If you are considering purchasing an NFT, work with your intellectual property attorney to thoroughly investigate NFT’s ownership, any license conditions included in the Smart Contract, royalty payments, etc. If you are issuing a new NFT, consider filing new trademark applications to cover new virtual goods and/or services.

Attorneys at Peacock Law are ready to discuss with you your options on how to protect your copyrights and NFTs.