What You Need to Know About non-fungible tokens (NFT) and Intellectual Property Law in England and Wales. Intellectual property is a valuable asset and it is essential that it is protected. Do you really own what your NFT says you do? If someone creates (or "mints") an NFT using your business logo or artwork, you can stop them provided you have registered your intellectual property. If you buy an NFT, does that mean you own the digital content it points to?
As more businesses, brands, and creatives explore the metaverse, it's critical to understand
the legal realities of non-fungible tokens (NFTs)—especially how they interact with intellectual property (IP) law in England and Wales.
What is a Non-fungible Token (NFT)?
An NFT is a unique digital certificate stored on a blockchain. It can point to anything—art, music, videos, logos, even physical goods or services. However, the key point is:
Owning an NFT does not mean you own the rights to the underlying content.
Unless specific rights are transferred—either in a legal agreement or embedded into the NFT's smart contract—you're just buying the token, not the asset itself.
Why this matters for businesses, NFTs can be easily minted by anyone from any content—even if they don't own it, which means your:
- Brand name
- Logo
- Digital/physical artwork
- Product images
- Event tickets
- Educational services
Has the potential to be turned into NFTs without your permission. This clearly raises serious risks around copyright and trade mark infringement and highlights the vital importance of ensuring that you have proactive legal protection.
The Intellectual Property Office (IPO) in the UK clarifies how rights can be protected and it has published guidance (PAN 2/23) on the registration and protection of NFTs representing virtual or physical goods, as well as metaverse services, under England and Wales intellectual property law.
Here are the key takeaways:
- Digital assets such as downloadable art or audio authenticated by NFTs fall under Class 9 of theNice Classification System
- Physical goods represented by NFTs (like shoes or handbags) may fall under Classes 16, 18, or 25.
- Retail or auction services involving NFTs belong in Class 35.
- Entertainment, education, or events accessed via NFTs may fall under Class 41.
Services that are ultimately delivered in the physical world should still be classified under their traditional classes, such as Class 43 for hospitality.
Ensuring that you choose the correct classification is vital to ensure that your brand is properly protected and also enable you to enforce your rights in the metaverse should the need arise.
Mirko Prisco, an associate in the Manchester office,
" the first practical application of Blockchain technology
arose in 2009, it was
recognised
and adopted beyond finance, extending into various commercial
sectors. The rapid advancement of this technology demands careful
oversight, as it could present risks if left unregulated. Just as
the cryptocurrency market has encountered fraud and irregularities,
the NFT ecosystem similarly requires prompt regulatory attention.
Creators of these digital assets should take a proactive stance to
safeguard their interests." Mirko further commented
"Ideally, future legislation will be more unified and
comprehensive, protecting the rights of those investing in the
metaverse or engaging with virtual realities. Regardless of the
outcome, it will be interesting to see how these developments
evolve within our ever-changing society."
Failing to register your intellectual property can not only lead to loss of income but also could involve an extensive legal case which can be time-consuming and costly. The intellectual property conflict betweenAstraZeneca UK Limited and Tesaro Inc. appears to have been resolved in the High Court but the case took three years to reach decision.
If you are creating, selling, or even thinking about using NFTs for your business, here are
Some steps to take to protect your interests:
- Register your IP rights (trade marks, copyrights, etc.) early, and in the right classes.
- Monitor NFT platforms for unauthorised use of your brand or content.
- Act quickly if infringement occurs—legal action is possible even in decentralised
- Seek legal advice before launching NFT-related products or services to avoid accidental rights violations.
Giambrone and Partners can help in navigating NFTs and IP to protect your assets.
Mirko Prisco has wide expertise specialising in family and immigration law, as well as intellectual property law. He is currently furthering his expertise in corporate law, employment law, and debt collection here in the UK.
Mirko is recognised for his attention to detail, efficiency, and ability to manage a wide range of legal matters with professionalism and care. He is particularly experienced in handling complex applications and is known for delivering thorough and timely results across diverse areas of legal practice. Hespeaks English, Italian, and Spanish.
Whether you are launching a digital product, protecting your brand in the metaverse, or dealing with unauthorised NFT use, our lawyers can help you safeguard your business interests.
Don't leave your digital assets unprotected, contact Giambrone and Partners today to safeguard your business. Please contact
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
