Music Sampling Copyright Infringement Case
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How we helped a digital artist recover stolen artwork that was minted as NFTs without permission
Our client, a renowned digital artist with over 15 years of experience creating distinctive digital illustrations and animations, discovered that several pieces from their portfolio had been minted as NFTs (Non-Fungible Tokens) on a popular blockchain marketplace without their knowledge or consent.
The unauthorized NFTs were being sold for substantial amounts, with the seller claiming full ownership rights and creative credit. Our client had never authorized these works to be tokenized or sold in this manner, and they were losing both financial compensation and artistic attribution.
This case presented several complex challenges at the intersection of traditional copyright law and emerging blockchain technology:
1. The decentralized nature of blockchain technology made it difficult to identify the responsible parties.
2. The marketplace platform claimed limited liability as they merely facilitated transactions between users.
3. International jurisdiction issues arose as the NFT marketplace operated globally.
4. There was limited legal precedent specifically addressing NFT copyright infringement at the time.
Our legal team developed a multi-faceted strategy to address this emerging form of copyright infringement:
1. Documentation and Verification: We compiled comprehensive evidence of our client's original creation and ownership of the works, including timestamped files, development sketches, and prior publications.
2. Platform Engagement: Rather than immediately pursuing litigation, we engaged directly with the NFT marketplace's legal team, presenting our evidence and citing their own terms of service regarding copyright infringement.
3. DMCA Takedown Notices: We filed formal DMCA takedown notices against the infringing NFTs, leveraging existing digital copyright protection frameworks.
4. Blockchain Forensics: We worked with blockchain analysis experts to trace the wallet addresses associated with the unauthorized minting, eventually identifying the responsible party.
5. Settlement Negotiation: With the infringer identified, we initiated settlement discussions focused not only on removing the infringing NFTs but also on securing compensation for sales already completed.
After three months of strategic legal action, we achieved a comprehensive resolution for our client:
1. All infringing NFTs were removed from the marketplace and transferred to our client's control.
2. The marketplace implemented new verification procedures to prevent similar infringements.
3. We secured a substantial settlement from the infringer, representing both actual damages from sales and statutory damages for willful copyright infringement.
4. The marketplace agreed to implement a new artist verification system to prevent similar cases in the future.
5. Our client retained full rights to mint their own NFTs of their work if they chose to do so in the future.
Comprehensive guides and tools to help you understand and navigate copyright protection
A comprehensive step-by-step guide to properly registering your creative works with the U.S. Copyright Office, including required documentation, common mistakes to avoid, and timeline expectations.
Navigate the complexities of protecting your creative works across international borders. This guide covers key treaties, country-specific considerations, and strategies for global copyright enforcement.
Understanding when the use of copyrighted material may qualify as "fair use" is essential for both creators and users. This framework walks through the four factors courts consider and provides real-world examples.
Technical and legal approaches to protecting digital content from unauthorized use, including watermarking, metadata embedding, content monitoring tools, and enforcement strategies for online platforms.