Written By: Cara O’Hanlon
Edited By: Zara Watson, Esq.
NFTs, or “Non-Fungible Tokens”, are unique digital files verified on blockchains. Blockchains can be used to store product data and transaction history. This serves as a digital certificate of authenticity that can represent property such as music, videos, artwork, or virtual items. Many businesses have filed trademark applications claiming intent to use NFTs in commerce. Brands that have filed trademarks for NFTs include:
- The Upper Deck Company
- The Andy Warhol Foundation for the Visual Arts, INC.
- The Chainsmokers
- Kings of Leon
- LFG NFTs, Corp. (Tom Brady)
NFTs can also be used as digital versions of physical goods after purchase. LVMH, which owns Louis Vuitton and Dior, intends to use blockchain technology to provide shoppers with NFTs to prove the authenticity of luxury items. According to CoinDesk, “To begin with AURA will provide proof of authenticity of luxury items and trace their origins from raw materials to point of sale and beyond to used-goods markets. The next phase of the platform will explore protection of creative intellectual property, exclusive offers and events for each brands’ customers, as well as anti-ad fraud.”
This will make it much more difficult to sell counterfeit items as it provides consumers with a unique form of proof that they have purchased luxury products. This NFT would also prevent the use of fake certificates of authenticity, as data stored in blockchains is unable to be altered.
At Zara Watson Law, we are an award winning, modern legal team providing a transparent trademark process for the digital entrepreneur. We provide peace of mind through white-glove support from start to finish. Click here to apply for a trademark today.
**This post is for informational purposes only, no attorney-client privilege has been formed.