Business is booming.

Can NFTs Save a NASCAR ARCA Career?

143


The recent report that Sotheby’s has had over $100 million in Non-Fungible Token (NFT) sales year to date is raising questions among Creators and Collectors about what are NFTs, what role NFTs play, and will play, in the Art Market, and whether Creators and Collectors should jump onboard the NFT bandwagon.  Those who create and collect art can try to ignore the impact of NFTs but they can’t ignore how NFTs fit into the current Intellectual Property (IP) rights.

Others are interested in NFTs not just for investment but as a means of promoting their brand in markets far away from the Art Market.  A recent example of this is Zachary Tinkle , a young NASCAR ARCA driver who weathered a grave family illness and COVID in 2021,and is now exploring using NFTs to fund and promote his 2022 season.

There are both great risks and opportunities in the NFT market today. In order to take advantage of the market, it is necessary to understand what NFTs are –and are not– the role IP plays, as well as understanding the role of IPs to market brands.

 

What is an NFT?

A Non-Fungible Token, or NFT is a digital collectible that is a unique, non-reproducible, digital code representing a digital file.  It is analogous to a paid invoice for a painting – it is not the painting: it does not guarantee the authenticity of the painting, it does not convey the ownership of the painting, but it does describe a transaction and points the way towards finding out about the ownership of the real asset it refers to.

NFTs are created when a digital file is uploaded to a third party NFT platform or distribution network.  Since the digital file is too large to easily be handled on such platforms, an NFT, or Hash, is created as a marker to stand in for the digital file. The Hash points the way to the URL where the digital file is located.  This Hash – a digital ID in essence, is what is unique about each NFT.   When an NFT is transacted, the Hash is what people buy and sell.  It’s also where the transaction is recorded.  This process of identification of the URL of data is called the “Smart Contract.”  The process of creating this digital ID, or NFT, is called Minting.  In essence, the original owner of the digital file mints a new NFT when uploading a digital file onto an NFT platform.

Once minted, neither the NFT nor the digital file that it points to can be altered, hence the name “non-fungible.”   If there is a change, the digital ID will reflect that change.  When sold, the buyer of an NFT acquires the ability to execute the Smart Contract that points to the URL of the digital file.  The buyer does not, however, acquire any ownership rights to the underlying asset (digital or otherwise) and may not even get the right to display, reproduce or use the digital file unless that is explicitly stated in the Smart Contract. Additionally, the buyer may, if the NFT is sold at a later date, owe a percentage of the transaction price to the Creator. The NFT is no guarantee of the authenticity of the digital file or the underlying asset:  it only can tell you the provenance of that specific digital file to which it points.

 

NFTs and Intellectual Property Rights

Intellectual Property (IP) are those rights that the Creator has over the “creations of their mind.”  IP rights are created when the work is created, there is no need to register or trademark the work. These rights include the exclusive right to own, display, use and reproduce the work. Those rights can be transferred from the Creator to others by legal contracts, either before or after the creation of the work.  So, someone creating a design for their employer is a Creator; but, if the terms of employment require, the Creator may have ceded their IP rights to the employer.

IP rights, and especially copyrights, are hard to enforce for digital assets. Digital assets are simple to reproduce, easy to display and difficult to identify which is the original work.  The result is that the Creator often rapidly loses control over the rights to the digital file once it enters the digital marketplace.

The benefit of an NFT is that the Smart Contract can be structured so that the Creator retains control over the use, display, resale and reproduction of this specific version of the digital file. Additionally, the Creator can add resale rights, so that a percentage of each “downstream” transaction accrues to the Creator.  For the Creator, the NFT goes some way towards mitigating some of the risks of digital assets in today’s marketplace.

For buyers, there remains the need for due diligence when purchasing NFTs.  Just because there is an NFT, there is no guarantee that the “Creator” has any rights to either the digital file or the underlying asset.  For example, an NFT of a forgery is a valid NFT of fraudulent work.  The third party hosting platforms have procedures to remove fraudulent NFTs; and, in the Terms of Service, these procedures and rights of Creators are spelled out.  This means that it is important to actually read the Terms of Service before buying an NFT. 

The Terms of Service will also describe how the purchase of an NFT actually effects the IP rights of the Creators, as just buying an NFT does not convey any rights to display, use or reproduce the digital file unless it is specifically described as doing so.  Before purchasing an NFT, make sure you understand:

  • What are your rights to use, display and reproduce the digital file?
  • What is the Seller’s representation of ownership of rights over the digital file?
  • How volatile is the NFT, and what happens if the underlying asset is no longer available?
  • What are the dispute resolution procedures?
  • What are the terms of any indemnification?
  • What does the buyer and the third party platform disclaim?

 

Using NFTs for Marketing a Brand

NFTs have made money not only for Creators and Collectors by the sale and resale rights in these digital markers and digital files, but they have also made money for businesses that use NFTs to market their brands.  For some companies, like Campbell’s, Taco Bell and others, NFTs are used to promote the roll out of new products.  Others have used NFTs that are linked to not only a digital file but also linked to assets in the real world.  For instance, offering an exclusive array of products, early access to services, and even the right to vote on some matters such as naming or color schemes of products. 

This use of NFTs has little to do with digital assets and everything to do with marketing – creating an emotional link between the product or service and the customer that owns the NFT.  Not only can the NFT be scarce enough to have intrinsic value to the Collector and the Creator, but it gives the Creator the opportunity to retell their story over and over again.  

For Zachary Tinkle, who has thousands of fans already, his NFTs will be less about making money as it is promoting his brand for this upcoming season and  to finance the required $250,000 needed before the season starts.  Selling naming rights for decals on his car may be one way to achieve this.  Selling NFTs that give fans the right to enter a lottery for the prime location is even better.  It is a way to allow fans to invest in his brand directly, something that Go Fund Me cannot.

 

Conclusion

It is possible, indeed likely, that NFTs will fade and become worth little or nothing as a digital asset.  It is possible that Zachary’s marketing of his Brand for the 2022 racing season will miss his mark.  It is, however, certain that the NFT’s that he, and other Creators and even Collectors mint, will endure and will be a necessary part of client’s estate planning.  Someday, we can look forward to the time when someone strikes it rich by finding the Key to a Wallet with Zachary’s NFTs in among the papers of a deceased relative.

Matthew Erskine is Managing Partner at Erskine & Erskine.



Source link

143 Comments
  1. Cctlnk says

    cheap levofloxacin 500mg levaquin 500mg usa

  2. Nqmtud says

    buy avodart 0.5mg generic celecoxib 200mg tablet ondansetron 4mg without prescription

  3. Ytukbw says

    buy spironolactone 25mg sale cheap valtrex 1000mg diflucan 200mg drug

  4. Krazvf says

    ampicillin 500mg without prescription ampicillin 250mg cost erythromycin 500mg usa

  5. Cabkbm says

    fildena 100mg sale tamoxifen pills generic methocarbamol 500mg

  6. Cadetc says

    sildenafil 100mg cost order sildalis generic generic estrace 1mg

  7. Bbghmd says

    lamictal for sale online order generic tretinoin purchase tretinoin generic

  8. Gfmfuu says

    order tadalafil 20mg for sale order tadalafil for sale order diclofenac generic

  9. Gpcjwj says

    order accutane 20mg for sale order zithromax online order generic azithromycin

  10. Isqnxt says

    buy indomethacin 75mg generic buy cefixime sale order generic amoxicillin 500mg

  11. Csgczg says

    buy anastrozole without prescription Generic viagra sildenafil brand

  12. Byhdmz says

    cialis 40mg sans ordonnance vrai cialis 10mg prix viagra 100mg en france

  13. Puedkz says

    prednisone order buy prednisone 40mg generic sildenafil cheap

  14. Tgpdmz says

    cialis 10mg ohne rezept viagra 200mg fГјr frauen viagra kaufen ohne rezept

  15. Qzvckf says

    order isotretinoin without prescription order accutane 40mg ivermectin tablet 1mg

  16. Jnbzbq says

    generic doxycycline vardenafil without prescription furosemide 100mg canada

  17. Mymiyx says

    buy altace 5mg pill buy astelin sprayers azelastine 10 ml generic

  18. Tsiqlb says

    buy generic catapres 0.1 mg catapres 0.1 mg without prescription brand spiriva 9 mcg

  19. Fifjyt says

    buspar 5mg ca buy amiodarone 100mg pills oxybutynin 5mg pill

  20. Btwvpv says

    order hytrin 5mg generic leflunomide 20mg sale order azulfidine 500 mg generic

  21. Tbgptl says

    alendronate 70mg usa buy generic panadol 500mg order famotidine sale

  22. Keputy says

    order generic benicar 20mg olmesartan over the counter acetazolamide for sale

  23. Kdldvo says

    order tacrolimus 1mg online buy tacrolimus generic urso 300mg uk

  24. Retcej says

    isosorbide 20mg without prescription order lanoxin 250 mg without prescription telmisartan 80mg for sale

  25. Isyujg says

    sertraline 50mg oral order sildenafil 100mg for sale viagra online

  26. Pxjqmn says

    order imuran 100mcg online sildenafil 150 mg viagra 100mg ca

  27. Dkjgjv says

    cialis 5mg oral can i get viagra in ireland sildenafil 50 mg

  28. Xiyeec says

    cialis drug amantadine 100mg without prescription order symmetrel 100mg pill

  29. Ynhoat says

    order naltrexone 50 mg pills albenza online order order abilify 30mg pill

  30. Jsvwsk says

    dapsone 100mg pills buy adalat pill aceon 8mg drug

  31. Vtmwed says

    purchase provera generic cyproheptadine order online periactin ca

  32. Zzdmxw says

    order modafinil sale stromectol 6mg generic ivermectin 0.2mg

  33. Sfhffh says

    luvox canada order nizoral 200mg pill glucotrol canada

  34. Dxgxdw says

    isotretinoin 40mg cost order deltasone 20mg for sale order prednisone 10mg pills

  35. Wvyxsp says

    order nootropil pill viagra 100mg pills for men viagra without prescription

  36. Yvkhvi says

    zithromax 250mg for sale purchase zithromax pills gabapentin 100mg canada

  37. Nzsczf says

    buy tadalafil 5mg for sale tadalafil us order viagra pills

  38. Okobca says

    pfizer cialis buy betnovate 20 gm without prescription buy anafranil 50mg

  39. Mnfqka says

    aralen over the counter baricitinib 4mg uk purchase baricitinib generic

  40. Xrecxz says

    buy itraconazole 100mg generic itraconazole for sale order tinidazole 300mg pills

  41. Umrrjv says

    purchase glucophage pill order tadalafil 10mg sale usa cialis sales

  42. Ztvnel says

    order olanzapine pill order diovan 80mg sale diovan 80mg us

  43. Mhucqu says

    norvasc price order viagra for sale tadalafil cost

  44. Gninoe says

    buy clozapine 50mg online cheap clozapine 50mg tablet purchase dexamethasone pills

  45. Ihuzqz says

    sildenafil pills 50mg order viagra online buy lisinopril 10mg

  46. Btzuup says

    buy linezolid 600 mg for sale zyvox 600mg without prescription play poker online for money

  47. Zxcxpk says

    omeprazole pills need essay written online casino roulette

  48. Wltbkj says

    lopressor 50mg brand metoprolol 100mg uk levitra 20mg usa

  49. Cfucca says

    speechwriters real casino slot machine games poker online sites

  50. Lmtwcn says

    order vardenafil 10mg online medrol over the counter medrol 8 mg oral

  51. Aqcecr says

    online thesis writing write paper online viagra overnight shipping

  52. Lcszsa says

    buy clomid order clomiphene online roulette free

  53. Wfhbkv says

    tadalafil 20mg tablet generic sildenafil 50mg buy sildenafil 50mg online cheap

  54. Gavguy says

    cheap triamcinolone 4mg order loratadine sale clarinex usa

  55. Gvsswx says

    dapoxetine medication dapoxetine 90mg without prescription levothyroxine over the counter

  56. Twfwiz says

    cialis for women cialis 20mg sale over the counter viagra

  57. Kgkkjx says

    buy xenical pills orlistat 120mg canada acyclovir generic

  58. Elnppo says

    brand name cialis clopidogrel 150mg cost buy plavix 150mg pills

  59. Cydaxb says

    order zyloprim 300mg cheap ezetimibe ezetimibe online order

  60. Mzbclk says

    generic methotrexate 10mg methotrexate 10mg cost buy reglan pill

  61. Plmytw says

    buy motilium pill flexeril for sale online flexeril 15mg pill

  62. Jnjzna says

    losartan online order order esomeprazole 40mg generic order topamax 200mg for sale

  63. Jaomhf says

    buy baclofen generic ketorolac generic buy toradol online

  64. Gismae says

    sumatriptan brand avodart brand buy avodart 0.5mg generic

  65. Oieqpq says

    colchicine price cost colchicine 0.5mg gambling games

  66. Vnlnnu says

    cheap zantac buy mobic online cheap buy celecoxib

  67. Qievgg says

    quick hits free online slots real money slots free spins no deposit play poker online for money

  68. Nfhlpk says

    order tamsulosin 0.4mg for sale aldactone 25mg generic order spironolactone 100mg pills

  69. Rhqvku says

    order simvastatin 20mg generic valtrex uk order propecia online

  70. Fobxsp says

    metronidazole 200mg pills augmentin online buy buy bactrim 480mg

  71. Eenkwo says

    diflucan 200mg pill viagra 50mg pills sildenafil citrate

  72. Dwrljy says

    buy generic cephalexin buy cephalexin for sale erythromycin 250mg drug

  73. Npmiei says

    prices of cialis purchase sildenafil pill buy viagra 100mg without prescription

  74. Zssmnn says

    order sildenafil 100mg viagra on line cost tadalafil 20mg

  75. Jddkpd says

    buy ceftin 500mg pill purchase careprost online order methocarbamol 500mg

  76. Llrsca says

    world poker online order cialis 10mg pill cialis overnight

  77. Hmytfe says

    buy desyrel 100mg sale sildenafil 50mg uk buy aurogra 100mg for sale

  78. Loaaza says

    my future essay writing academicwriters stromectol cost in usa

  79. Xprefc says

    purchase sildalis sale sildenafil for men over 50 buy lamotrigine 50mg online cheap

  80. Dedzjg says

    purchase deltasone online cheap buy prednisone sale buy amoxicillin sale

  81. Pqarrg says

    cheap viagra online buy viagra 100mg for sale purchase tadalafil sale

  82. Uebgvs says

    online roulette game poker online for real money order cialis 20mg online

  83. Uwhhjz says

    zithromax 250mg drug order azithromycin for sale buy neurontin 800mg pills

  84. Ulnbze says

    free slot modafinil 200mg drug modafinil ca

  85. Ausfys says

    oral lasix 40mg buy generic doxycycline 200mg hydroxychloroquine sale

  86. Ckbqvt says

    purchase sildenafil generic fildena 50mg sale purchase rhinocort online cheap

  87. Agtaks says

    deltasone 10mg uk minipress ca order vermox 100mg pill

  88. Jknpyn says

    buy tretinoin for sale buy tretinoin generic buy generic avanafil 200mg

  89. Zdulnt says

    generic tadalafil order tadalafil 10mg online cheap buy indocin online

  90. Zupzdu says

    order lamisil without prescription order terbinafine 250mg without prescription trimox 500mg for sale

  91. Xcimpn says

    order naproxen without prescription order naproxen 500mg generic lansoprazole 15mg uk

  92. Ljupfr says

    generic clarithromycin meclizine 25 mg us meclizine 25mg oral

  93. Grbdql says

    spiriva 9mcg pill hytrin price brand terazosin 5mg

  94. Jjdzar says

    purchase proventil pantoprazole ca buy ciprofloxacin 500mg for sale

  95. Kvgdrf says

    order actos online sildenafil next day delivery usa viagra 100mg cheap

  96. Kauail says

    montelukast 10mg pill oral singulair 10mg buy viagra pill

  97. Dsuesg says

    tadalafil without prescription Price cialis free slot games online

  98. Anneqd says

    order cialis pills Cialis online us purchase cialis for sale

  99. Txpcma says

    blackjack game online slots casino games free

  100. Oqsxfy says

    ivermectin us dapsone price buy dapsone 100mg sale

  101. Cmeroi says

    online casinos play poker online for money slots online

  102. Zsaiji says

    nifedipine 10mg drug allegra over the counter purchase fexofenadine online

  103. Uwfuxx says

    casino slots online pharmacies in usa my friend essay writing

  104. Omelmh says

    brand ramipril 5mg etoricoxib 120mg price order etoricoxib pill

  105. Zkabyh says

    need a paper written order leflunomide sale order azulfidine 500mg generic

  106. Vopnsl says

    order mesalamine online azelastine for sale avapro online

  107. Xvewpj says

    olmesartan pill olmesartan 20mg canada buy depakote 250mg pill

  108. Tyddlh says

    cheap diamox buy imdur sale buy imuran 25mg generic

  109. Zjawlk says

    clobetasol over the counter amiodarone order online cordarone 100mg pill

  110. Qrxzmj says

    order lanoxin 250mg generic buy digoxin without prescription molnupiravir brand

  111. Qtmvld says

    amoxicillin 500mg sale amoxil 250mg sale ivermectin 1mg

  112. Cztbzg says

    order fosamax online cheap furadantin 100mg generic motrin 400mg tablet

  113. Xdibmx says

    dapoxetine 30mg ca priligy brand motilium 10mg usa

  114. Uhngjv says

    buy pamelor online cheap cost pamelor 25 mg buy paxil 20mg online cheap

  115. Ukvubo says

    indomethacin price order cenforce pills buy cenforce

  116. Kgfomu says

    famotidine generic prograf for sale online mirtazapine oral

  117. Tvcrbs says

    order doxycycline 100mg pills doxycycline pill cost medrol

  118. Dggyya says

    requip 2mg cheap generic trandate 100 mg buy trandate sale

  119. Tgmzcz says

    tadalafil for sale online brand clopidogrel 75mg trimox for sale

  120. Uzlguq says

    fenofibrate price order viagra 100mg pill buy sildenafil 50mg pills

  121. Zdogrm says

    oral nexium 20mg clarithromycin us buy lasix pills

  122. Xzjrmz says

    buy cialis 20mg pills order sildenafil 50mg sale order viagra online cheap

  123. Wktous says

    minocycline 100mg over the counter terazosin 1mg brand order hytrin 5mg generic

  124. Pqzxla says

    cheap cialis 10mg Buy cialis usa medicine erectile dysfunction

  125. Idmchx says

    metformin canada brand verapamil buy nolvadex 10mg without prescription

  126. Mfikfx says

    modafinil 200mg without prescription stromectol 3mg usa purchase phenergan for sale

  127. Numtoo says

    brand clomid 100mg clomid 100mg brand order generic prednisolone 20mg

  128. Bktmxx says

    prednisone 5mg pill deltasone 20mg price buy amoxicillin 500mg pills

  129. Knvxxo says

    sildenafil medication order propecia brand finasteride

  130. Iujzcd says

    stromectol tablets for sale oral stromectol 6mg deltasone pill

  131. Uxhmnc says

    buy ondansetron pills order zofran for sale order bactrim 480mg online

  132. Qlkwfm says

    purchase accutane pill purchase zithromax generic azithromycin online

  133. Ikvuej says

    albuterol usa brand augmentin purchase augmentin sale

  134. Hymwna says

    buy modafinil pill order modafinil pills metoprolol 100mg ca

  135. Qjoiix says

    order prednisolone 10mg generic furosemide drug buy lasix for sale

  136. Hycjbm says

    buy generic avodart 0.5mg dutasteride for sale online purchase xenical pills

  137. Tduysm says

    buy doxycycline for sale purchase vardenafil generic order generic acyclovir

  138. Npylhv says

    purchase imuran sale buy imuran 50mg pills order naproxen for sale

  139. Thkgcb says

    cefdinir order order cefdinir 300mg for sale order protonix 20mg without prescription

  140. Yxbtzr says

    simvastatin uk zocor order sildenafil pills 50mg

  141. Ncorvz says

    order dapsone 100mg pill order avlosulfon online atenolol 50mg drug

  142. Kefebk says

    uroxatral usa order generic diltiazem diltiazem drug

  143. Efqxle says

    sildenafil 150mg viagra or tadalafil order cialis 40mg generic

Leave A Reply

Your email address will not be published.