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NFT Copyright Law

Copyright Law & NFTs

NFT Copyright Law

The explosion of Bitcoin and other cryptocurrencies has led to interest in related digital assets. Among the most popular – and volatile – of those digital assets are Non-Fungible Tokens, or NFTs. As more and more investors consider NFTs, questions are being asked about the legality of this technology. Specifically, people want to know about copyright law & NFTs. Is it possible to hold a copyright for an NFT? Are you allowed to create derivative copies of your NFT and reproduce it? If an NFT was created from an original work, what are the copyright implications for that original work? This is a murky area of the law that is still developing, and it has implications for a lot of people: NFT buyers, NFT sellers, and pretty much anyone who owns a copyright.

To learn more about NFTs and copyright law, keep reading this blog.

What Are NFTs?

On a superficial level, Non-Fungible Tokens (NFTs) are just digital works of art. Some of the most well-known NFTs are digital copies of original works that exist in the real world, such as paintings, music, collectibles, and even tweets. Other NFTs were created exclusively as digital artworks.

Of course, NFTs are significant for reasons that go beyond art appreciation. NFTs are non-traditional assets with a unique quality to them: they are not interchangeable and cannot be divided. By contrast, a Fungible Token like Bitcoin can be broken down into fractional values, so that the owner of a Bitcoin can sell 50% of it and keep the other 50%. The uniqueness of each NFT is what generates a great deal of interest in them, since they are perceived to be incredibly scarce.

Another interesting aspect of NFTs is that they exist entirely on something known as the blockchain, which is a kind of technology that allows information to be permanently stored on a computer network. When someone purchases an NFT, they are purchasing a link to the Token on the blockchain. NFTs essentially function as certificates of ownership. Importantly, the Tokens are entirely digital, with the transaction records traceable online. In one sense, this makes NFTs similar to both real property and intellectual property in that their ownership history is recorded. Additionally, NFTs and Bitcoin are assets that can be traded on certain digital platforms.

Is an NFT Copyright Protected?

NFTs have been in the news lately because the cryptocurrency market has seen sharp declines in value, with many observers wondering if the bottom has fallen out on the NFT market as well. The fact remains, however, that NFTs still have a great deal of value, especially as some owners look to sell their digital assets. This makes it vital to understand how copyright law might impact NFT owners.

First, anyone who buys an NFT should understand that the sale typically does not involve the copyright for the original work that exists outside the blockchain. That’s because an NFT is a derivate of that real-world work, even if the NFT itself is unique. As set forth by the Copyright Act of 1976, only the copyright holder has the right to reproduce the work, distribute copies of the work, and publicly display or perform the work for commercial benefit. The bottom line is that when you buy an NFT, you don’t own it. You cannot create derivative works and sell copies because doing so will impact the intellectual property rights of the person or entity who holds the copyright to the original work.

Given that many NFTs are based on original works, there is also some question about copyright enforcement. Since only the copyright holder has the authority to use their original work commercially, and since NFTs are by definition “reproductions” made for commercial purposes, the NFT market has created a need for copyright holders to monitor social media platforms, websites, message boards, and other areas of the internet for copyright violations. In some instances, NFT copyright violations are so flagrant that it may be necessary to speak with an attorney about sending a copyright demand letter or DMCA notice to the offending party.

Contact the California Copyright Lawyers at Tauler Smith LLP

If you are an artist, business owner, website operator, or other individual whose copyright has been infringed, the Los Angeles copyright lawyers at Tauler Smith LLP can help you. Our legal team understands federal intellectual property law, and we know how to win these types of disputes. Call 310-590-3927 or submit an online contact form to schedule a free consultation.

Copyright vs Trademark vs Patent

Copyright vs. Trademark vs. Patent

Copyright vs Trademark vs Patent

“Intellectual property” covers a wide range of business assets, such as books, screenplays, photos, movies, computer software code, inventions, and formulas. Copyrights, trademarks, and patents are the main types of intellectual property. Federal law provides strong protections for the creators of original works, inventors, and licensors of IP rights, but the law is complex. In fact, people often confuse copyright, trademark, and patent because each kind of intellectual property protects creators or licensors against unauthorized use or infringement by others, but they do so in different ways. If you are involved in an intellectual property dispute, you need to have a solid understanding of what the law says with respect to copyright vs. trademark vs. patent.

To learn more about the differences between copyright law, trademark law, and patent law, keep reading this blog.

What’s the Difference Between Copyrights, Trademarks, and Patents?

Intellectual property can be an extremely valuable business asset. That’s why it is important that only the rightful owner of the asset’s IP rights be allowed to exploit the intellectual property for profit, whether that involves selling it or licensing it. The three most common tools used to protect the intellectual property rights of certain types of assets are:

  1. Copyrights
  2. Trademarks
  3. Patents

Copyrights

As set forth in the Copyright Act of 1976, copyright protects original creative works like novels, songs, paintings, videos, photographs, drawings, clothing, jewelry, and even websites. Only the copyright holder may copy, sell, perform, or display the work for profit, or license the work to someone else for commercial reproduction, distribution, performance, or display.

When it comes to securing copyright ownership, the original creator of a work technically doesn’t need to do anything to acquire the copyright of that work. But there are a number of benefits only available to those who actually register their copyright with the U.S. Copyright Office. For example, if someone does infringe on your copyright, you will first need to file for copyright registration before you can bring a lawsuit in federal court to enforce your copyright. Additionally, copyright registration will probably make it easier for you to back up your case in court because there will be a public record of the copyright claim: all officially copyrighted works published after 1978 are deposited with the Copyright Office and entered into an online database.

Trademarks

While copyright applies to original works of authorship, a trademark covers unique words, phrases, slogans, symbols, and designs that can be used to identify a good, product, or service. A requirement for a company trademark is that the name or logo being trademarked should distinguish the product or service from any other products or services. For example, the product name for Coca-Cola is trademarked because it stands out from all other soft drinks on the market, and everyone who hears the name knows exactly what it refers to.

Just as with copyright law, a trademark does not actually have to be registered in order to get trademark ownership. Even without registering the trademark, you can still use common law to protect against trademark infringement by competitors who attempt to copy the look of your product and pass it off as their own. Just as with copyright law, however, official registration of your trademark comes with certain advantages, including the ability to file a lawsuit in federal court to enforce your trademark against unauthorized use.

To get trademark protection solely within your home state, or in the state where you conduct business, you must register with that particular state. To get federal trademark protection that crosses state boundaries, you must file a trademark registration application with the United States Patent and Trademark Office (USPTO). Once you’ve registered your trademark, you will be allowed to use the registered trademark symbol (®). Otherwise, you are limited to the common law trademark symbol (™).

Patents

Generally speaking, patent law protects inventors by giving them the exclusive right to make, use, copy, or sell their inventions or discoveries, or to license their inventions to another person or entity. Obtaining a patent can be extremely difficult, and it often requires the assistance of an experienced intellectual property lawyer.

Unlike with copyrights and trademarks, the only way to avail yourself of patent protection is to apply for and be granted a patent by the U.S. Patent and Trademark Office (USPTO), the same agency that handles trademark applications. Absent patent registration, the formula or process used in the invention may be considered a “trade secret.” The main advantage to obtaining a patent is that you can then sue anyone who infringes the patent by using or selling your invention without consent. But patent registration does come with a significant downside: you must publicly disclose the unique process or composition of your product. For certain companies that wish to maintain trade secrecy (e.g., pharmaceutical drug manufacturers), this can present a dilemma.

Contact the California Intellectual Property Lawyers at Tauler Smith LLP

If someone has infringed on your exclusive intellectual property rights, or if you have been accused of violating someone else’s intellectual property rights, your best move is to speak with a knowledgeable IP lawyer immediately. The California intellectual property attorneys at Tauler Smith LLP, with a main office in Los Angeles, are prepared to help you bolster your IP claim or build a strong defense against an accusation of copyright or trademark infringement. Call us now at 310-590-3927 or fill out the online contact form.

Copyright Ownership

Determining Copyright Ownership

Copyright Ownership

When it comes to determining copyright ownership, it helps to understand exactly what a copyright is and who can benefit from a copyright. Copyright is a form of intellectual property that provides the creators of original works of authorship with protection against infringement by competitors or anyone else who is not authorized to use, display, or present the work for profit. The general idea behind copyright protection is that painters, photographers, filmmakers, authors, and other artists will be motivated to continue producing if they know that no one else will be able to steal or otherwise misappropriate their work. Importantly, it is only the author of the work, or a person to whom the author has licensed their IP rights, who can legally claim copyright ownership.

To learn more about how to determine who owns a copyrighted work, keep reading this blog.

Who Owns the Copyright for a Creative Work Generally?

Copyright protection applies to most creative works, including films, book manuscripts, photographs, songs or sound recordings, and even computer software. If you have created one of these types of works, then it will typically be assumed that you are the person who holds the copyright. If you were not the author and you want to have the copyright assigned to you, it is best to do so in writing. That’s because mere possession of a work – even if it is the only copy of that work – is not the same as copyright ownership. In other words, if the author sells you the actual work (e.g., an original book manuscript), that might not be the same thing as selling you the work’s copyright ownership.

The bottom line is that, in the absence of a contract to transfer the copyright, the default rule will usually be that the copyright is owned by the work’s original author or creator.

Who Owns the Copyright for Joint Works?

A joint work is defined as an original work that was created by two or more people. Copyright disputes can arise when a work has more than one author because each of the authors is considered a co-owner of the copyright. This means that each author has the ability to license the copyright, as long as they share the licensing profits with the other copyright owners. It is also possible for joint authors to reach an agreement in advance of publication, or after the fact, to transfer sole ownership of the copyright to a single person.

Copyright Ownership of Works Made for Hire

In certain situations, it’s not the actual author of the work who gets copyright ownership but instead someone else who derives their intellectual property rights from the original author. For example, if the author was an employee who created a work for hire during the course of their job duties, then it is usually the employer who gets copyright ownership and who can profit off the work in the future.

Works Created by Employees

Section 101 of the United States Copyright Act addresses works made for hire. As set forth by the statute, a work that was prepared by an employee acting within the scope of their employment constitutes a work for hire.

Works Created by Non-Employees

What about works created by non-employees, such as independent contractors or freelancers? The federal copyright law stipulates that, in these situations, an employer may be the copyright holder of a work if that work was specifically commissioned for use in one of the following ways:

  1. A contribution to a collective work.
  2. Part of a film, video, or other audiovisual project.
  3. A translation of another work.
  4. A supplement to another work.
  5. A compilation.
  6. An instructional text.
  7. A test or answers to a test.
  8. An atlas.

Keep in mind that even if the work fits into one of the above categories, there should still be a signed agreement between the parties in order for ownership of the copyright to transfer from the original author to the company or other party. The presence, or absence, of a written contract stipulating that the work is, in fact, a work made for hire will go a long way toward determining copyright ownership.

Involved in a Copyright Dispute? Contact the Los Angeles Copyright Lawyers at Tauler Smith LLP

If you are involved in a copyright dispute, the Los Angeles copyright lawyers at Tauler Smith LLP can help you. Our legal team has experience representing clients in intellectual property cases involving copyright infringement, trademark infringement, and other IP claims. Call us now at 310-590-3927 or submit the online contact form.

Copyright Duration

How Long Does Copyright Protection Last?

Copyright Duration

Copyright protection exists to ensure that the creators of original works of authorship, such as movies, photographs, and novels, are able to enjoy the fruits of their labor, so to speak. As set forth by U.S. copyright law, creative artists and authors are generally afforded the exclusive right to profit from their work for a certain period of time. The idea is that people will be motivated to create works that benefit society if they know that they, as well as their descendants, will be able to generate income from the creation, performance, and public display of those works in the future. But how long does copyright protection last? Keep reading this blog to find out.

The U.S. Copyright Act and the Length of Copyright Protection

While the U.S. Constitution gives Congress the power to pass laws that protect copyrights, it is the U.S. Copyright Act of 1976 that sets a time limit for federal copyright protection. According to the statute, the creators of original works of authorship can only have this protection for a certain amount of time before the works enter the public domain and can then be used by anyone. Until that happens, however, only the original author is allowed to sell copies of the work or display the work in public for a profit. When a copyright dispute arises, one of the first questions that almost always gets asked is this: is the work still subject to copyright protection, or has the copyright protection expired?

The precise duration of copyright protection depends on the answers to a number of other questions, including the following:

  • What type of creative work is it?
  • When was the work created?
  • Was the work published? If so, when was it first published?
  • Were there any copyright renewal procedures for the work that needed to be followed?
  • Were there multiple authors?
  • Was it a “work made for hire”?
  • Do we know the identity of the work’s author, or was the author anonymous?

Copyright Duration for Works Created After 1978

The default rule for any work created after January 1, 1978 is that copyright protection lasts for a period of either 70 years from the date on which the original author died. This is also the length of copyright protection for any work created prior to January 1, 1978, as long as that work was not published or registered until after 1978.

Additionally, the length of copyright can vary according to the answers to the questions listed above.

Type of Creative Work

The term of copyright protection follows the same rules for most types of creative works, including literary works, photographs, and films. However, there are some exceptions. For example, sound recordings were affected by the Music Modernization Act, which was signed into law in 2018. The legislation established date ranges (e.g., 1923-1946, 1947-1956, 1957-1972) with different durations for audio recordings and musical compositions.

Identity of Author

Anonymous works (as well as works where the author used a pseudonym) created after 1978 have a copyright duration of either 120 years from the date when the work was created or 95 years from the date when the work was initially published, whichever expires first. However, the default length of 70 years after the author’s death will apply if, at any point, the author’s identity is revealed through an official registration of the work with the U.S. Copyright Office.

Joint Works

When the work had multiple authors, the copyright lasts for the life of the last surviving author plus an additional 70 years after that author’s death.

Works Made for Hire

Works created by an employee during the course of their employment are subject to different copyright rules because it is the employer who is technically considered the legal author of the work for the purposes of federal copyright law. Works for hire have the same copyright duration as works created anonymously: either 95 years from the date of publication or 120 years from the date of creation.

Copyright Duration for Works Created and Published Before 1978

Things get more complicated for works that were created and published before 1978 because of subsequent intellectual property laws that allowed for automatic copyright renewal. Since these creative works already had federal copyright protection prior to 1978, they are generally subject to the U.S. Copyright Act of 1909 when it comes to calculating the length of copyright protection. The initial term of protection was 27 years from the date of first publication, with copyright protection able to be extended with renewals. These renewals became automatic with the passage of the U.S. Copyright Renewal Act of 1992.

Contact the California Copyright Lawyers at Tauler Smith LLP

Do you want to know how long the copyright will last on your creative work? Do you have another question about your intellectual property rights? The Los Angeles intellectual property attorneys at Tauler Smith LLP can assist you. You can call us anytime at 310-590-3927, or you can fill out the contact form here.