Hermes Trademark may set future NFT Laws
As NFTs become more widely recognized and standardised, certain regulations are being imposed on non-fungible tokens. Hermes International SA has persuaded a federal judge in Manhattan to not throw out the trademark lawsuit against the artist selling “MetaBirkin” NFTs, Mason Rothschild.
Rothschild, the artist notorious for selling the embellished digital creations, is being sued by Hermes for trademark infringement. “MetaBirkin” NFTs, coined by Rothschild, were created without the luxury brand’s permission and sold at Art Basel Miami making a profit well over $1 million USD.
courtesy of artnet news
Rothschild’s argument is that these NFTs are not a form of verification for the well-known Birkin Bag but a form of commentary on Hermes’ manufacturing techniques. The filing also stated that the art is protected under the First Amendment of the US constitution. Once the ruling is made, this case will set a precedent for how trademark laws will be applied to NFTs.
NFTs are not only known as a form of digital art but have a wide range of uses for brands and consumers. Non-fungible tokens can be traced on the blockchain through its provenance offsetting any form of illegitimacy. This form of verification can track the item and be used in the resale digital space counteracting counterfeit purchases.
NFTs are also being dubbed as ‘digital twins’ to physical assets being sold. One app leading the way in creating these digital twins is Authentique. This app creates NFTs at the point-of-purchase of the physical product thus creating an NFT on the blockchain. The digital twin is then used to verify the legitimacy of the product thus furthering its value. This form of verification uses visual recognition software as opposed to RFID tagging leaving no trace or marking on the physical item.
Authentique is among the first to fight against the counterfeit market and is bringing to light the usefulness of NFTs among the luxury goods industry. This app is proving that NFTs are a useful investment and are needed to combat the sale and resale of counterfeit goods through blockchain technology.
In the case of Hermes International vs Rothschild, the precedent will be determined on how and what can be created as an NFT. The shift on how NFTs are perceived as either art, digital twins or as both will be marked by this court case and give further insights to what makes an NFT legitimate.
Currently, the NFT market is ambiguous, decentralised and lacks regulation. These verifiable pieces of digital art are not going anywhere anytime soon and are growing in popularity among the masses. As this form of digital art becomes more normalised, there will be regulatory bodies enacting laws and opinions globally to mitigate what can and cannot be made into these digital pieces. These types of regulations will help brands secure their trademarks and create a more widely understood form of ruling within the Metaverse.
