Do I have ownership rights to NFTs?

Everything you need to know about buying and selling NFT.

NFT topics are probably one of the most controversial topics on the Internet at the moment. The question naturally arises, what are NFTs anyway? How can I buy, sell and acquire ownership of this even though it is a virtual work of art?

NFT is one of the hottest topics on the internet right now. The question, of course, is what exactly are NFT’s? How can I buy, sell and own these items even if they are virtual art?

What are NFTs?

NFT stands for non-replaceable tokens and means in German: non-replaceable tokens. Therefore an NFT is a visual code that protects a digital object by identifying it as original and unique and assigning it to a person.

NFT is described as non-replaceable because it is one-time. For example, if you search for one bitcoin against another, you will end up getting one bitcoin again. However, with NFT, it is not possible to restore exactly that immediately. In this case, non-interchangeability does not mean that it is not tradable.

NFT stands for non-replaceable token, which in German means: non-replaceable token. NFT is a visual code that secures a digital object by identifying it as an original and unique object and associating it with an individual.

NFT is described as non-interchangeable because it is unique. For example, if you exchange one bitcoin for another, you will end up with one bitcoin again. However, equal recovery is not possible with NFT. Non-exchangeable in this context means non-negotiable.

How to buy and sell NFT?

Basically, you can buy and sell NFT in online marketplaces. The most famous of these markets are: Binance, FTX, OpenSea, Nifty Gateway, SuperRare or Rarible. The largest market for digital goods is OpenSea. Here, NFT transactions are processed via the Ethereum blockchain. So first you need a wallet with which you can buy NFT with cryptocurrencies on the market. Selling works the same way. You sell your NFT on the market and then add to your wallet the corresponding crypto value.

However, you should be extra careful when creating an account in a market. In principle, one does not receive an NFT, but only a claim against the market. However, it depends on the respective user agreement (maybe there are other articles here). If you have any questions, Mr. Hermann Kaufmann will of course be happy to assist you.

But what is NFT from a legal perspective? How do I deal with fraud attempts?

Ownership in NFT’S?

NFTs are basically decentralized chains stored on the blockchain. Therefore, it cannot be specified or stored spatially. According to our legal situation, they cannot prove their own ownership. Because only those who have the key can sell the NFT.

However, NFT can create different rights.

Because only the person who has the key can act in the NFT as the authorized person. The keys are kept in the wallet. Only authorized person can access this content.

Copyright may apply.

If a picture is sold, among other things, the buyer becomes the owner. However, the artist is still the author of the work. In principle, copyrights cannot be sold. However, usage rights can be granted, as third parties obtain the right to reproduce, publish or edit the work.

When selling an NFT that belongs to an image, the original authorship remains. The NFT purchaser acquires the Certificate of Authenticity (NFT) and the rights (copyright) to use the image in accordance with Article 31 (1) UrhG. This right of use is transferred under a license agreement and can and must be agreed upon separately.

For example, a simple license can authorize the buyer to use the corresponding work. The author can even stipulate that they continue to use their work themselves and/or grant others the right to use it.

In the case of an exclusive right of use, only the purchaser can use, distribute and reproduce the work.

A special standard is § 69a UrhG in connection with § 69c UrhG, Computer software is protected. Computer software is software in any form (such as software on a hard disk or embedded in hardware), including design materials. This means that the fabric (the individual structure) of a computer program (such as collecting, selecting, and command structures) is essentially protected.

The NFT consists of an individual code and constitutes a single architecture that can be stored on devices. Thus, an NFT can essentially be a computer program to which an asset can also be assigned.

As you can see, the legal status of NFT can be very complicated.

Are you looking for a lawyer to buy or sell NFT?

If you want to buy or sell an NFT or are unsure of the legal status of your NFT and would like your options to be shown, Mr.

Attorney Hermann Kaufmann is on hand for advice. Simply call 04202/6 38 37 0 or send an email to us: info@rechtsanwaltkaufmann.de.

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