NFTs Taking Over the Trademark Realm
News
Businesses have registered a lot more trademarks for non-fungible tokens, virtual goods and services related to the Metaverse, and crypto assets in 2023. (NFTs).
According to data compiled by registered trademark attorney Mike Kondoudis, as of the end of October 2022, there were 4,708 trademark applications made for digital currencies and the goods and services that go along with them, surpassing the total number of applications filed in 2021. (3,547).
In the past month, several companies have applied for new trademarks to join the Web3 ecosystem. A large beauty and cosmetics company named Ulta registered a trademark on October 21 in connection with its plans to provide salon services, NFTs, and virtual makeup.
Luxury watchmaker Rolex also filed a trademark registration with plans to broaden its empire through NFTs, NFT-backed media, NFT markets, and crypto exchange.
A non-fungible token, often known as an NFT, is a type of digital asset that can be used to symbolise special, one-of-a-kind assets, typically crypto-properties. Anything digital, including pictures, animated GIFs, music, and video game assets, technically fits the definition of an NFT. NFTs can also represent a variety of real-world property assets, including works of art, music, films, collectables, and even real estate.
Since their virtual ownership is tracked via blockchain technology, NFTs cannot be copied, and their value comes from their unique individuality.
An NFT is constructed using the same technology as cryptocurrencies, however, there is a significant interchangeability difference. The term “fungibility” refers to the interchangeability of cryptocurrencies. An NFT, on the other hand, cannot be swapped or exchanged.
Contrarily, a trademark serves as a sign of provenance that sets one company’s products (or services) apart from those of other companies. Names and logos are the most typical NFT trademarks.
By preventing rivals from using the same or similar name or symbol, trademarks avoid consumer confusion. Since NFTs’ value is built on trust and authenticity, this exclusivity is especially essential when it comes to NFTs.
What is an NFT trademark?
An NFT trademark designates a non-fungible token that stands for digital assets that may be purchased, sold, swapped, and carried out using blockchain technology. These assets include digital media, virtual goods, digital collectables, and other types of crypto assets. A footwear company could register its name as a trademark for any of the following:
- Digital assets, digital collectables, digital tokens, and non-fungible tokens are examples of downloadable digital media (NFTs)
- Creating a marketplace and registry online for digital assets, collectables, tokens, and non-fungible tokens (NFTs)
- Digital items traded as non-fungible tokens, such as digital assets and collectables (NFTs)
Why Should one Trademark one’s NFT Name?
The name and emblem you use to advertise your NFT or the asset it stands for might be trademarked.
Additionally, NFT-related services can be trademarked. Several instances include:
Financial services such as hosting hosted crypto collectable and blockchain-based non-fungible token shops, non-fungible token trading, and the issue of digital tokens for the provision of online non-downloadable virtual goods, such as digital artwork, images, movies, or audio recordings.
Many different businesses across numerous industries are trademarking their NFTS. Nike, Puma, Panera, McDonald’s, Willaims-Sonoma, and Pottery Barn are a few businesses that have applied for trademarks for NFTs. Among the people who have applied for NFT trademarks are Jay-Z, Muhammad Ali, Shaquille Oneal, and Kobe Bryant.
Conclusion
In 2022, March saw the most trademark filings overall, with 1,078 for NFTs, 604 for cryptocurrencies, and 759 for the Metaverse. This might be due to Mark Zuckerberg has announced his intentions to make NFTs accessible on Instagram. On the other hand, fewer trademark filing applications were made in July and August.
The US Space Force, Meta, Formula One, Mastercard, McDonald’s, Gatorade, and other well-known brands all filed documents with the US Patent and Trademark Office (USPTO) indicating their interest in blockchain and cryptocurrency. The conflict appears to be intensifying overseas, according to news that the upscale brand Hermès has applied for a trademark in the US for the use of its name in the Metaverse, NFTs, and virtual money. This action follows Hermès’ lawsuit against MetaBirkins’ founder for allegedly making money off the sale of NFTs with the company’s Birkin brand name.
