Devon Stone of the LegalEagle YouTube channel (2.3 MM subscribers) has put together a 45-minute look at the legal aspects of Non-Fungible Tokens (NFTs). He makes the point that there are significant issues that buyers and issuers need to consider.
My main takeaway is that if your organization is looking to issue NFTs as a marketing promotion you should have your lawyers carefully review the project in detail. Don’t just take the word of a vendor that you’re covered and everything is taken care of, since it sounds like many of these projects are not as buttoned-up as they seem.
Specific issues he covers include:
- Issues with contract law
- Failure to include terms & conditions with the sale
- Issues for downstream purchasers who weren’t party to the original purchase contract
- Lack of copyright protection for digital art
- Purchasers don’t actually “own” anything (they get a license
- Investment/securities issues with NFTs
- Huge fraud concerns with many NFTs
Steve Mould and Coffeezilla contribute to this video. It’s well produced, easy to follow, and should cause you to be careful.
