Character License To Create A New NFT Digital Product – Fin Tech

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License characters to a third party to create an NFT to sell in exchange for royalties.

NFTs are used by innovative brands in China to boost their brand value and engagement with consumers. Our client wanted to license their characters to a third party to create an NFT to sell in exchange for royalties. They approached us to draft the NFT Cooperation Agreement and understand how to mitigate the new regulatory and intellectual property risks created by this new digital asset.

From a regulatory perspective, we advised on contractual arrangements for receiving royalties and for restricting the sale and use of NFTs in accordance with regulations. When managing intellectual property, we have advised mechanisms to control intellectual property ownership and prevent misuse and abuse by third parties, including end consumers. In order to protect our client’s brand reputation, we have taken care of the intellectual property clearance due diligence for the new NFT artwork. We also advised on content censorship and ensured that cultural sensitivities were not infringed. As a result, our client was able to enter into the agreement with the licensee knowing that their royalty income was secure while their reputation and intellectual property were protected.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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