Working with digital content always involves risk. You might purchase a creative asset and instead face accusations of violating intellectual property (IP) laws protecting its creator. Not the best scenario, right?

 

To avoid such a situation, an entrepreneur specializing in the purchase and resale of digital assets (3D images) in NFT format contacted us. The task was to create a legally sound cooperation agreement that clearly regulates the transfer of intellectual property rights.

 

Want to learn more? Keep reading!

 

Under NDA, But With Some Details

We cannot disclose information about the client due to confidentiality obligations, but we will share key details to provide context. 

 

This concerns an entrepreneur working in the field of creating and distributing 3D images in NFT format. The activity covers the entire cycle: from submitting a concept for 3D model development and its commercial visualization to tokenization and placement on blockchain platforms.

 

In this process, intellectual property issues are critically important, so the client turned to us as legal experts in this field with a request for comprehensive legal support for the brand.

 

Legal Papers That Had to Cover Literally Everything

Since third parties were involved in content development, it became necessary to regulate business relationships between partners, contractors, service providers, distributors, and others. The key request was to create a standard agreement for collaboration with digital content developers. The main goal was to clearly define the procedure for transferring intellectual property (IP) rights: first to the client, and then to the final owner of the NFT asset.

 

The overall task included the following:

 

  • To study the applicable legislation of the target jurisdiction regarding the regulation of digital assets and IP.
  • To analyze the specifics of the client’s operations, including interactions with contractors and platforms.
  • To develop a legal framework and a comprehensive set of documents for the client’s use.

 

The documentation had to outline the terms of cooperation in as much detail as possible to eliminate all potential “blind spots” and risks. At the same time, it was important to consider the interests of both parties – not only those of our client. The task was clear, the team was assembled, and the project was launched.

 

With Intellectual Property in Mind: From Legal Field Research to Delivering Agreement Templates to the Client

To accomplish the task, we applied our proprietary algorithm for preparing legal documentation for businesses in the NFT segment. Specifically:

 

  • We learned everything about the specifics of 3D content development and the process of converting models, assets, and renders (images) into NFTs.
  • We reviewed the financial terms of the contract: the total value of the agreement and the payment procedure between the client and the contractor for the provided services.
  • We considered the scope of services provided, the number of creative works, their quality, and value to the end audience.

 

We used the gathered information to develop a set of legal documents. These documents now regulate our client’s business relationships with contractors – the artists who create commissioned content.

 

As a Result – A Ready Legal Framework for Working with NFTs in Ukraine

The client received a standard offer agreement, which details the rights and obligations of the parties, the conditions for 3D content development, the procedure for its evaluation and acceptance by the customer. Financial aspects are also included, such as the payment algorithm and format. Most importantly, the agreement clearly outlines the procedure for transferring intellectual property rights upon signing.

 

The document fully complies with current legislation and meets the needs of our client. It is already actively used in daily operations.

 

Do you need assistance with preparing legal documentation for your business? Contact an AA Lawrange manager for an initial consultation!