Lexicon > NFT

IT Glossary


An NFT, or non-fungible token, is a data file representing a digital object stored on a blockchain. It is a digital certificate dedicated to an object or a digital work and which validates its authenticity.

Tokens, or non-fungible tokens, are distinguished from a crypto-currency (like Bitcoin or Ether) by the presence of an issuer.

Indeed, in law, the token is defined as a “intangible property representing, in digital form, one or more rights that may be issued, recorded, retained or transferred by means of [d’une blockchain] enabling the owner of such property to be identified, directly or indirectly” (article L.552-1 of the Monetary and Financial Code) while cryptocurrency is a “a digital representation of value…that is accepted by natural or legal persons as a medium of exchange and that can be transferred, stored or exchanged electronically” (article L.54-10-1 of the Monetary and Financial Code).

It is non-fungible and therefore non-interchangeable and non-replicable: each NFT is unique and not worth another (unlike crypto-currencies like Bitcoin or Ether).

A non-fungible token has unique properties and shows certain proofs of authenticity and signatures such as a unique identifier, a unique creator or a unique content.

The best known use of NFTs is in the field of art and collectibles. Examples include NFT NBA Top Shot trading cards or art sales such as Beeple or Art Blocks Curated at Christie’s.

In the world of games, and in particular sports games, we can mention some NFT games like Sorare.

NFTs in sports are a way to create new products and services and renew the fan experience.

At the start of the Italian Serie A championship, Juventus put up for sale a 3D, high-definition representation of their new home kit for the 2021/22 season – this digital version, which is unique thanks to the NFT Pro blockchain technology, was purchased at auction for about $30,000.

The gaming world is also at the heart of the recent NFT boom.

You can buy items in games or manage real estate NFTs in metaverse for example (the company Facebook has announced the launch of its metaverse). Decentraland, The Sandbox and Enjin are already popular blockchain games. AxieInfinity has become one of the most famous NFT video games.

NFTs are still a nebulous area that is difficult to understand.

They are sometimes seen positively as a way to take advantage of blockchain to support a creator, an artist.

Others see NFTs as a new approach to culture, an uberization of art, a new way of storing works. In any case, they are a new tool for speculation and investment.

Finally, an NFT is just a code or hyperlink to what the NFT authenticates. Thus, this connection can be broken if there is a problem with the server or with the NFT code, or in case of bankruptcy of the host.

The metaverse

The metaverse, a contraction of the term meta-universe, is a network of interconnected, persistent and shared virtual worlds.

This network, connected to the Internet, is accessible through the use of advanced technologies allowing virtualization (augmented reality, virtual reality…).

These technologies allow users to be immersed in virtual worlds, for various purposes (events, games, commerce, etc.).

Companies are multiplying their initiatives in the metaverse.

  • Metaverse Fashion Week: fashion in front of the flamboyant inhabitants of Decentraland

From March 24 to 27, the first “Metaverse Fashion Week” (or MVFW) was held in the virtual universe of Decentraland. 70 trademarks were present, including Dolce&Gabbana, Etro, Auroboros, Tommy Hilfiger, IKKS and Frank Muller.

  • Virtual fashion e-shop: DRESS-X

DRESS-X directly markets the NFTs it creates for itself or for trademarks and gives all NFT owners using its platform exclusive access to their tokens on their phone via the Dressx application, with the possibility to wear these unique digital looks in augmented reality. The transactions are made in Ethereum.

  • Collaboration with artists

Adidas and Prada have collaborated on the “Adidas for Prada re-source NFT” project, with digital artist Zach Lieberman. Proceeds from the sales of the NFTs will be split between a charity, the artist and creative members of his community.

In addition, more and more big names in fashion are exploring the virtual world.

GUCCI is particularly present in the metaverse.

The famous luxury trademark made a historic sale at a price of $4,115 in the metaverse by selling a bag for more than it costs in the real world.

Louis Vuitton, Fendi, Ralph Lauren, Burberry and Balenciaga are also multiplying their initiatives.

  • Louis Vuitton and Ralph Lauren create video games (For RL on Roblox).
  • Dolce & Gabbana presented “Collezione Genesi”, a series of NFT haute couture pieces unveiled in Venice during Alta Moda ;
  • Burberry has created its own NFT accessories in association with video game platform Blankos Block Party.

All trademarks buy a virtual space to welcome customers who are eager for new experiences.

In the metaverse, everyone is represented by an avatar.

Very logically, this is accompanied by the emergence of virtual avatars that are designed and imagined to embody the values of a trademark.

These virtual images, which sometimes become influencers, are very successful and communicate with him in an almost real way, so much so that it becomes difficult to separate the real from the fake.

These new influencers such as Lil Miquela, Noonoouri, Shudu Gram collaborate with extremely prestigious trademarks and embody them, both on social networks and in the virtual world.

The issue of copyright

The question arises as to whether an NFT is eligible for copyright protection.

The Intellectual Property Code gives authors an exclusive right to their works, provided that they are original, i.e. that they bear the imprint of the author’s personality (arbitrary artistic choices that give the work a certain originality).

In France, the law provides that copyright confers two attributes to authors, namely:

  • Economic rights that allow the author to benefit from a monopoly of exploitation on the protected work (right of reproduction, representation and resale right);
  • Moral rights, which include the right to respect for the work, the right to disclose the work to the public and the right for the author to claim his name (right of authorship).

However, the NFT is a certificate of digital authenticity and cannot a priori be qualified as a work of the mind within the meaning of the provisions of the Intellectual Property Code.

However, some of NFT’s creations may be similar to the author’s creative process and thus qualify as a work of the mind.

Indeed, in terms of art, technology allows to digitize and “divide” works of art into potentially small tokens.

Some artists have also “blockchainized” their paintings, sculptures or other creations, by issuing dozens, hundreds or even thousands of digital tokens (NFT).

The technology allows for the commercialization of works, and just about anything else imaginable, in the form of a non-fungible token, NFT, or “non-fungible token.”

Some examples.

  • Twitter founder Jack Dorsey’s very first tweet was sold in March 2021 as an NFT for $2.9 million .
  • The video clip of LeBron James’ dunk against the Sacramento Kings in the November 15, 2019 game was sold to user “kyloren” as an NFT for more than $208,000 (€180,055), while the video itself can be viewed for free on the TopShot platform.

In the case of copyright, each of the rights assigned to a creation must be mentioned separately in the act of assignment and the field of exploitation must be delimited as to its scope, destination, place and duration (Article
L.131-3 paragraph1 of the Intellectual Property Code

With the arrival of a virtual environment in which a real parallel market is emerging, it is essential that the contracts for the transfer of rights expressly provide for exploitation in the metaverse.

The Bouchara firm assists you in particular in :

  • The protection of your intellectual property rights in the metaverse (trademarks, copyrighted works, designs, etc.) ;
  • Making your organization RGPD compliant ;
  • The drafting of data protection policies (privacy policy, computer charter…).