Legal protection for NFT digital collectibles

Abstract

The rapid development of blockchain technology has led to the emergence of NFT-based (non-fungible token) digital collectibles, which are becoming a new direction within the digital economy and the cultural industry. NFT technology enables the uniqueness of digital assets, verification of ownership, and transparency of transactions. However, this phenomenon also generates a number of complex legal issues. In particular, the uncertain legal status of NFT assets, risks of intellectual property infringement, and the lack of clearly defined mechanisms for platform liability and user rights protection pose significant challenges to existing legal systems. Therefore, a comprehensive academic analysis of the legal protection of NFT digital collectibles is of particular relevance. The purpose of the study is to determine the legal nature of NFT digital collectibles, analyze the main theoretical approaches to their legal status, and substantiate regulatory mechanisms aimed at reducing legal risks in the NFT market. The study applies the method of literature analysis. Relevant domestic and international academic publications on NFT technology, digital asset law, and intellectual property were examined, alongside an analysis of current legislation and judicial practice. In addition, practical legal disputes and real cases related to the functioning of the NFT market were reviewed. The research identifies two main legal characteristics of NFT digital collectibles. First, NFT certificates recorded on blockchain platforms possess the legal status of data-based property rights. Second, the underlying digital content associated with NFTs should be considered a form of virtual property. Furthermore, the study substantiates the need to classify NFT trading platforms, depending on their business models, as either technical service providers or content service providers. It also demonstrates the necessity of proportionally allocating legal responsibilities to platforms based on their control capabilities and the extent of economic benefits they derive. The proposed approaches contribute to improving the legal regulatory framework for NFT digital collectibles, strengthening intellectual property protection, and clarifying legal relations between platforms and users. The findings may serve as a theoretical foundation for developing effective governance mechanisms for the digital asset market and ensuring its sustainable and secure development.