A government study finds that while IP theft is commonplace in the world of NFTs, existing laws can be applied to protect U.S. copyright, trademark and patent rights. Those are the findings of a study released this month by the U.S. Patent and Trademark Office in conjunction with the U.S. Copyright Office. The 112-page report concludes “existing statutory enforcement mechanisms are currently sufficient to address infringement concerns related to NFT applications, and that changes to intellectual property laws,” or to registration and recordation practices, “are not necessary or advisable at this time.”

The study, Non-Fungible Tokens and Intellectual Property: A Report to Congress, was compiled in response to a June 2022 request from the Senate Judiciary Committee’s then-chair Patrick Leahy (D-Vermont) and Thom Tillis (R-North Carolina) who continues as ranking member of the subcommittee on intellectual property.

“NFTs offer unique opportunities for creators to leverage their IP rights, but also present new challenges in keeping their work secure,” Kathi Vidal, USPTO director and under secretary of commerce for IP, said in a joint news release by the agencies.

When it comes to policing crypto media, “enforcement efforts are complicated by the decentralized and anonymous nature of NFT platforms, and the decentralized nature of the blockchain networks on which NFTs are stored,” the report says.

The report also examined the upside of NFTs, with the offices noting that “NFTs and associated smart contracts can aid trademark owners in managing, licensing and transferring IP rights,” reports Engadget. Another upside: “NFTs may offer opportunities for U.S. artists to obtain remuneration from downstream resales of their works,” the report says, underscoring a gray area.

“Since  U.S. copyright law does not expressly provide for such remuneration, these opportunities depend on the code underlying the NFTs and the rules of the platforms on which they’re sold rather than any statutory entitlement,” says the report.

Likewise, for the trademark holder, NFT and blockchain networks present opportunities “to build their brands, reach new consumers with interactive products and services, document the provenance of products, and manage trademark rights,” per the study. However, challenges remain, “including the fact that records stored on blockchain networks are theoretically immutable, which can complicate efforts to remove inaccurate or fraudulent records.”

While deeming a legal overhaul unnecessary, the report suggests that “educating the public about NFTs could help ensure a better understanding and awareness of the tokens and how they work,” per Engadget.