NFT Lawyers: Expert Legal Advice for Creators

(NFTs) have revolutionised the digital landscape, enabling ownership and trade of unique digital assets. However, this innovative technology brings with it a complex web of legal considerations. Our NFT legal services are designed to help you navigate these challenges and protect your digital assets. 

Our Services 

1. NFT Creation and Smart Contract Development

Creating NFTs involves more than just minting tokens. Our team provides comprehensive guidance on the legal aspects of NFT creation, including: 

- Smart Contract Drafting: We draft and review smart contracts to ensure compliance with relevant regulations and standards. Note that a smart contract is computer code that automatically executes the terms written into the code on certain conditions being met. It is unwise to use smart contracts for complex transactions. The inability to change terms and the difficulty of understanding contractual terms make smart contracts inappropriate for the complexity of liability and intellectual property licensing issues. It is simply impossible to write complex contractual terms into code. You will need to communicate the detailed terms of the offer, which a coder cannot hide within the smart contract code, because there has to be clear communication of an offer.

Intellectual Property Rights: Secure your rights by understanding how copyright, trademarks, and patents apply to your NFTs. 

2. NFT Transactions and Trading Engaging in NFT transactions

Our legal services cover: 

NFT Contracts Lawyers

- Negotiation and Drafting of Agreements: Our NFT contracts lawyers specialise in the intricacies of drafting and reviewing contracts related to NFTs. We provide:

• Contract Review and Negotiation: We ensure that all contracts related to NFT transactions are clear, enforceable, and protect your interests. This includes reviewing terms of sale, licensing agreements, terms of service and partnership contracts.

• Compliance with Legal Standards: Our team ensures that all contracts comply with relevant laws and regulations, minimising the risk of disputes and legal challenges.

• Tailored Contract Solutions: We understand that each NFT project is unique. Our lawyers work closely with you to create customised contracts that reflect your specific needs and objectives.

- Dispute Resolution: In case of disputes, we offer mediation and arbitration services to resolve conflicts efficiently. 

NFT Marketplace Lawyers

Our NFT marketplace lawyers are equipped to handle the unique challenges that arise in this sector, including:

• Marketplace Compliance: We ensure that your NFT marketplace adheres to all relevant regulations, including consumer protection laws and financial regulations.

• Terms of Service and User Agreements: Our team drafts clear and comprehensive terms of service and user agreements to protect your marketplace and its users.

• Dispute Resolution for Marketplaces: We provide mediation and arbitration services specifically tailored for disputes arising within NFT marketplaces, ensuring a fair resolution for all parties involved.

• Advising on the launch of NFT marketplace or exchange project. We advise on what NOT to do when instructing your developers on designing the NFT platform. The legality of tokens offered on the platform, compliance with the laws of the countries where your platform is doing business, and the best jurisdiction to set up the business that runs the NFT platform.

• NFT marketplaces that have not done their homework on compliance and legitimate contractual terms find themselves being investigated or in litigation, before they have even started. 

By partnering with our NFT marketplace lawyers, you can confidently launch and operate your platform while minimising legal risks.

3. Legal And Regulatory Compliance NFTs

We offer: 

- Regulatory And Case Law Guidance: We keep you informed about the latest regulations and cases affecting NFTs, including securities laws and tax implications. 

In the UK, NFTs are governed by case law and statute covering financial services and intellectual property (copyright, design rights, trademarks, patents). 

Such laws include the following:

The Financial Services and Markets Act (FSMA) 2000, all financial activities within the UK must be regulated by the Financial Conduct Authority, and to be regulated, the FCA or the Prudential Regulation Authority (PRA) must authorise your business (including not for profit and sole traders). 

Businesses involved in crypto-assets may include NFTs. The FCA has released further guidance on whether your business requires authorisation here.

As of January 2020, the financial activity includes businesses involved in crypto-assets under The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 as amended by The Money Laundering and Terrorist Financing (Amendment) Regulations 2019.

Cases

AA v Persons Unknown [2019] EWHC 3556 (Comm) is one of the most important English decisions confirming cryptocurrency status as property under English law. 

In Robertson v Persons Unknown (unreported),  demonstrated that UK courts do recognise crypto assets such as NFTs.

 In Vorotyntseva v Money-4 Ltd [2018] EWHC 2596 (Ch), the court assisted in the valuation of crypto-assets.

In Toma V Murray [2020] EWHC 2295 (Ch) the court recognised the unique characteristics of crypto-assets such as NFT and their volatility and potential quick change in value.

- KYC/AML Compliance: We help you implement Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures to ensure compliance. 

• Consumer Protection - we advise on selling NFTs via a digital platform to consumers, including advising on the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (the Consumer Contracts Regulations 2013). 

4. Intellectual Property Protection and IP Infringement Claims:

We can help you protect your NFTs and assess and pursue claims against unauthorised use of your NFT-related content. We provide: 

NFT Intellectual Property Protection Lawyers

Our NFT intellectual property protection lawyers specialize in safeguarding your creative assets in the NFT space. We provide comprehensive legal services to ensure that your intellectual property rights are protected, including:

Copyright and Design Rights

• The copyright works making up the tokenised asset will be protected. So would any designs which would also be protected as a design right. In some cases, copyright and design rights can apply cumulatively for the same asset.

• Trademark Registration: You can use trademark registration to add additional protection to the tokenised digital item. An owner of a digital item can trademark the name to a digital object. In the UK, it has become possible to trademark graphic marks such as graphic files, it will be possible to protect the intellectual property in the visual representation of an NFT. Other ways of protecting an NFT’s creative process are through trade secrets and non-disclosure agreements.

• Patent Applications: As long as the invention solves a technical problem and is novel, nothing stops the patenting of an NFT. While the definition of "technical problem" is quite broad, NFTs are software-based and qualify for patenting. 

• Licensing Agreements: We draft and negotiate licensing agreements to allow others to use your NFTs while retaining your ownership rights, ensuring you benefit from your creations.

IP Strategy Development and litigation support

We assist in developing strategies to secure and monetise your intellectual property related to NFTs and file lawsuits where approprioate if there is a breach of your intellectual property rights.

Other Types of NFT Disputes

We specialise in NFT partnerships and advise on fraud disputes.  

NFT Disputes Lawyers

Our NFT disputes lawyers are dedicated to resolving conflicts that arise in the NFT space. We provide expert legal representation and advice in various types of disputes, including:

• Contractual Disputes: We assist clients in navigating disputes related to NFT contracts, ensuring that your rights are protected and that you receive fair treatment under the law.

• Intellectual Property Disputes: Our team helps resolve conflicts involving copyright, trademark, and patent issues related to NFTs, ensuring that your intellectual property rights are upheld.

• Fraud and Misrepresentation Claims: We represent clients in cases of fraud or misrepresentation in NFT transactions, helping to recover losses and hold wrongdoers accountable.

• Dispute Resolution Services: We offer mediation and arbitration services tailored to the unique challenges of NFT disputes, aiming for efficient and effective resolutions.

NFT Partnership Disputes Lawyers

involves multiple people collaborating on an NFT project to profit from sales. Each member contributes differently, such as investing money, marketing skills, coding, or creating art. All partners share the profits and losses. Disputes arise when partners disagree on business direction, like selling at a specific price versus waiting for a higher one. Conflicts may also stem from management of growth and unequal workloads, where one partner feels they contribute more. Profit distribution is another common issue, with partners disputing contributions and profit allocations. We provide guidance and representation in matters such as:

• Profit Distribution Conflicts: We help partners navigate disagreements over profit sharing and contributions, ensuring fair and equitable resolutions.

• Management Disputes: Our team assists in resolving conflicts related to business direction and management responsibilities, helping partners find common ground.

• Collaboration Agreements: We draft and review partnership agreements to clearly outline roles, responsibilities, and profit-sharing arrangements, minimizing the potential for disputes.

• Legal Representation: In the event of a dispute, we provide robust legal representation to protect your interests and achieve a favourable outcome.

NFT Fraud Disputes Lawyers

Involves intentionally taking financial advantage or gaining other benefits over another person or group through deception. It can manifest in various forms, including fake documents and false statements.

Fraud, Misrepresentation, Authorisation

• We advise issuers and platforms on how authorities classify NFTs, crypto coins, and related blockchain technologies. As opportunities for crowdfunding, proof of ownership, profit sharing, and revenue generation increase, so do the legal and compliance risks.

• We advise on fraudulent advertising and promotions

By engaging our NFT Fraud disputes and partnership disputes lawyers, you can ensure that your rights are protected and that conflicts are resolved efficiently, allowing you to focus on your NFT projects.

Safeguard Your Digital Future with Our Experienced NFT Lawyers

Our expert NFT lawyers are here to support you every step of the way, ensuring your digital assets are well-protected and compliant with the law. Whether you're a creator, trader, or marketplace operator, we offer tailored legal solutions to meet your unique needs.

Commitment to Client Success 

Your success is our priority. We are dedicated to providing transparent, reliable legal services that protect your interests and help you thrive in the NFT space. 

Don’t Leave Your Digital Assets to Chance!

Contact us today for a consultation and discover how our expert NFT lawyers can help you safeguard your NFTs and navigate the complex legal landscape. Let's embark on this exciting journey together!

For a quotation, please contact us at (020) 7305-7491 or peter@pailsolicitors.co.uk. We would be delighted to assist you. Mr Peter Adediran is the owner and principal solicitor at PAIL® Solicitors. Subscribe to our newsletter to get blog post updates and other information about the firm straight to your inbox.