Navigating the Pitfalls: Top 3 Risks to Avoid in NFT Trademarking

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The emergence ofnon-fungible tokens (NFTs) has opened up exciting new opportunities for creators, investors, and collectors. However, when something is new, uncharted legal territory often remains around it. For those in Philadelphia seeking to protect trademarks associated with their NFT brands, understanding this complex landscape is key. This article provides helpful background and tips about trademarking NFTs locally, so innovators can feel empowered navigating the niches and nuances.

AtBull Blockchain Law, our experience with blockchain and cryptocurrency allows us to navigate the intricate legal complexities of your case. If you’d like more information, call us today at 215-695-5860.  

Grasping What Rights Trademark Registration Offers 

A common early point of confusion surrounds what asset a trademark legally covers. Many initially assume that registering a trademark for their NFT provides comprehensive protection over the associated digital artwork or media. However, trademarks more narrowly cover brand names, logos, and slogans - the branding components rather than the asset itself. This distinction trips up some first seeking protection in the NFT space.

Under current law, a Philadelphia trademark registration cannot directly prevent unauthorized usage of the underlying digital creation, video, music, images or other media comprising the NFT. Infringements of that media would fall more under copyright or patent law. Trademarks only give legal recourse when another entity makes unauthorized usage of the specified brand name or logo. So branding and assets require approaches as distinct intellectual property (IP) concerns.

Why Performing Due Diligence Matters

Before submitting a trademark registration application anywhere, conducting comprehensive searches is always advisable. Failing to research beforehand risks investing time and money into an application that ultimately cannot proceed because the proposed brand conflicts with existing trademarks. Thorough due diligence minimizes this likelihood.

Searching the U.S. Patent and Trademark Office’s (USPTO) TESS database and state registers helps uncover potentially conflicting marks. Given how niche trademarking practices remain around NFTs thus far, securing an attorney versed in this corner of the law is prudent. An experienced lawyer can best judge if a proposed brand risks confusion with others in relevant classes. They also know alternative brand iterations worth considering that strengthen trademarks. Comprehensive searching done right equals headaches avoided later.

Paying Meticulous Attention to Application Details

When submitting a trademark registration application for an NFT brand, meticulous details matter exponentially. Since NFTs constitute an emerging trademark category, descriptions must carefully capture the inherent digital media nature involved and Specify trademark classifications aligned to industry guidance. Anything vague or imprecise threatens drawing office actions, suspensions, or even refusals during review.   

A well-versedNFT trademark attorney gets this right. They take great care in translating novel technological aspects into acceptable legal terminology per USPTO rules. From classifications stating the type of goods/services to product feature descriptions, each application section warrants thoughtful precision. Without appropriate experience, applicants risk missteps that extend registration wait times after submitting. Carefully consulting professionals pays dividends through efficiently secured rights.  

Staying Alert to Legal Updates Surrounding NFTs

Because NFTs connect with complex technological and financial sectors, various regulatory agencies watch their rapid emergence closely. Laws and compliance obligations touching NFT ownership rights, sales regulations, taxation policies, and more continue progressing swiftly. Both creators and collectors have much at stake in staying atop legal updates tied to blockchain-enabled assets and transactions.

For instance, the USPTO recently fine-tuned examination guidelines for applications dealing with NFTs and cryptocurrency subject matter, providing extra clarity around properly detailing these goods and services. Just months before, the U.S. Treasury Department proposed comprehensive reporting rules regarding crypto transfers over $10,000 in value, which could impact platforms selling high-value NFTs. Updates like this make engaging lawyers actively handling NFT matters valuable for those exploring the space. Experienced counsel artfully navigates nuances as rules progress.    

Key Trademark Risks to Mitigate Around NFTs

Maneuvering the intricacies around legally trademarking NFT brands initially seems daunting. However, thoughtfully avoiding three primary risks paves much smoother application experiences:  

  • Not completely understanding registrations only protect branding elements rather than underlying digital assets themselves  

  • Failing to implement comprehensive trademark searches beforehand

  • Not giving meticulous care toward descriptions of NFT-related goods/services

Of course, the most directly relevant guidance around mitigating risks for Philadelphia applicants comes fromweb3 lawyers regularly handling NFT trademark cases locally daily. They grasp the full spectrum of details needed to strategically clear and build brands in this unique sphere. Securing their services early creates assurance as endeavors launch.


Frequently Asked Questions 

Many exploring NFT trademarks raise recurring questions about understanding protections better. The following helps illuminate key topics:

  1. What Legally Does An NFT Trademark Protect?  

In the Philadelphia jurisdiction, an NFT trademark provides exclusive brand usage rights regarding the registered name, logo, slogan, etc. - the branding, not the digital item itself. Copyright and patent law governs media usage rights.

  1. Why Are Comprehensive Searches Valuable Before Submitting Applications?

Thorough due diligence minimizes risks of an applied-for trademark conflicting with existing registered brands, preventing application objections or confusion disputes later. Doing this homework early saves major hassles.

  1. What Details Warrant Particular Attention Within Application Descriptions? 

Summarizing the digital asset's purpose while correctly classifying its industry niche is vital, so reviewers immediately understand the branding’s commercial intent alongside its format. 

  1. Can Evolving NFT Regulations Impact Existing Trademark Rights?

Yes, because laws about emerging technologies frequently change. Classification systems also occasionally get updated to capture new sectors like NFTs better. Therefore later reassessments help keep rights aligned with the latest rules.


  1. Should Professional Legal Support Be Considered When Trademarking NFTs?

Engaging blockchain attorneys closely following NFT trademark developments regularly smoothens the registration process. Given their skill set, lawyers versed in nuances around properly characterizing these virtual goods translate applications optimally for approval.

Perspectives on Navigating Trademarks

As NFTs fundamentally transform how creative works get monetized, establishing protections early is prudent, especially regarding defensible branding even just regionally. When secured strategically, trademark registrations furnish vital exclusivity around the identities of NFT ventures. They shelter ongoing visibility and trust in the Philadelphia marketplace. But given the warp-speed evolution seen with enabling technologies like blockchain and AI/ML fueling new platforms, constant re-evaluation helps keep brands maximally relevant and legal. Just as the best NFT creators never stop innovating, so should their trademark protections proactively realign perpetually ahead of impending curves. With the right guidance, the law can nurture imagination rather than restrict it.

Prioritize Your NFT Trademark

In an exponentially expanding field, a trademark means everything to maintain a competitive advantage as a blockchain innovator. 

By consulting legal counsel like Bull Blockchain Law from day one, customizing protection strategies to leverage NFTs’ benefits, monitoring vigilantly, and staying compliant, your startup’s inventions remain exclusive assets for changing the world. Don’t wait until damage happens - plan for success from the outset. Call us today at 215-695-5860.

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About Bull Blockchain Law

As lawyers, technologists, and entrepreneurs, the firm’s partners began their journey in the crypto industry by building and operating cryptocurrency mining machines and a private digital asset investment fund. They quickly realized that the industry was woefully underserved by legal professionals who grasped the impact blockchain technology would eventually have on the world. Bull Blockchain Law LLP was founded to support the growth of a new breed of technology. Today, the firm serves as counsel to clients of all sizes and an advocate for sound public policy. It remains one of the few law firms completely focused on the crypto industry.