NFT is stored in a blockchain, namely your personal wallet, and contains information on where the digital asset is located. For this reason, there are risks of deliberate or negligent disappearance of this asset, which can result in the depreciation of the NFT.
The first thing to note is that NFTs can be subject to intellectual property protection, so buyers of NFTs should pay attention to what intellectual property rights come with the NFT.
Under the Berne Convention for the Protection of Literary and Artistic Works, parties must grant exclusive rights to authors in their works, regardless of the type or form of expression. At the same time, under Article 1(4) of the WIPO Copyright Treaty, storage of a protected work in digital form in an electronic medium (e.g. NFT) is a reproduction that requires the prior approval of the copyright owner.
In practice, most NFTs are transferred without author’s rights and in this case there are no legal consequences for such an owner.
It should be noted that NFT remains an unregulated area, so there are risks that can be avoided by seeking proper legal assistance.
NFT royalties are payments to the author expressed as a percentage of each sale, referred to as the resale right.
They are supplied by means of smart contract codes on a blockchain. Each time a new sale takes place, the smart contract guarantees a royalty payment to the author in accordance with the terms. This payment ensures that the author is properly paid for the work done on a daily basis and in the future.
Register a legal entity.
Create internal platform documents regulating the relationship between the NFT marketplace operator and customers, as well as between buyers and sellers represented on the NFT platform.
Pay attention to protecting NFT's intellectual property rights. For the NFT marketplace to run smoothly, proper intellectual property rights for each participant must be verified and protected at every step of every NFT transaction.
Introduce an anti-money laundering policy and comply with the terms of other regulatory requirements.
Ensure data confidentiality and transparency of data collection and use.