Compliance with intellectual property laws can be ensured with NFT transactions through the following ways:
1. Verification of ownership: Before an NFT is minted and sold, the creator must verify their ownership of the intellectual property. This can be done through legal documentation and registration of the intellectual property.
1. Smart contracts: Smart contracts can be programmed to include terms of use and copyright infringement provisions, which will help ensure protection of intellectual property rights.
1. Traceability: Because NFT transactions are recorded on a blockchain, they provide a transparent and permanent record of ownership and transfer of ownership. This makes it easier to track and enforce intellectual property rights.
1. Digital watermarking: Creators can digitally watermark their intellectual property, making it easily identifiable and preventing unauthorized use.
1. Legal action: If intellectual property rights are violated in an NFT transaction, legal action can be taken against the infringing party, just as it would with any other type of intellectual property infringement.
