Who Owns The Copyright In NFTs? (2025 Updated)

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NFTs have stormed into the investing world and made a significant impact on crypto investments in 2025. Their increasing popularity has inspired both individuals and businesses to engage in trading or purchasing them, leveraging blockchain innovations for secure and transparent transactions.

Like many investments, NFTs come with their own set of benefits and risks. Whether you’re already active in the NFT market or planning to explore it in the near future, staying abreast of potential legal ramifications is essential for making the best decisions possible in today’s dynamic environment.

A common question that arises is whether NFTs include copyright protection and who ultimately owns it. In this article, we’ll explore how copyright works in the realm of NFTs and what implications this may have for your business in 2025.

What Is An NFT?

Non-fungible tokens (NFTs) are unique digital assets verified via blockchain technology. This uniqueness means that each NFT is an original and singular piece – one NFT cannot simply be exchanged on a like-for-like basis with another, as is the case with cryptocurrencies like Bitcoin or Ethereum.

They must also be bought or sold as whole units; unlike some other investments, NFTs are non-divisible. In other words, you cannot split an NFT into fractions for multiple transactions.

A wide range of digital creations can be minted as NFTs – from art, music, and video clips to digital collectibles and even memes. In 2025, the scope of what qualifies as an NFT continues to expand, offering creators innovative ways to monetise their work.

How Does Copyright Work?

Although NFTs encapsulate original digital content, the application of copyright to them is complex. Simply put, owning an NFT does not automatically transfer copyright protection over the underlying work unless there is an explicit contractual provision to do so.

Let’s first review the basics: Copyright is the legal protection granted to the creator of an original work. It is applied automatically once you create something original – be it a song, painting, poem or digital design – so long as it meets the necessary criteria.

These rights allow the owner to control, sell, or licence their work as they wish. If someone else infringes upon these rights by copying or creating a derivative work without permission, the original creator can pursue legal action.

Is Copyright Automatic?

Yes, copyright is applied automatically upon the creation of any original work. In 2025, this means your digital creations are protected under copyright law the moment they are fixed in a tangible form, provided they meet the standard requirements of originality.

Many creators also display a copyright symbol © or include a disclaimer on their work to alert others of their rights, though this is not a legal necessity for protection.

Who Owns The Copyright In NFTs?

As previously mentioned, copyright issues become particularly complex with NFTs. In most cases, merely owning an NFT only confers the right to claim ownership of the token itself – the underlying copyright typically remains with the original creator unless a transfer is specified through a contractual agreement.

However, some smart contracts may incorporate specific clauses that explicitly transfer certain ownership or licensing rights to the NFT owner. This effectively grants benefits similar to traditional copyright; however, such arrangements depend entirely on the terms embedded within the smart contract and any accompanying terms and conditions.

We’ll discuss these additional T&Cs later in this article.

Can You Get Copyrighted On NFT?

Unless there is a contract or set of T&Cs that specifically transfers copyright or exclusive usage rights to the NFT owner, simply purchasing an NFT does not grant you copyright over the underlying content.

Otherwise, such rights would remain with the original creator of the work.

How Do NFT Smart Contracts Work?

If you’ve engaged in NFT transactions recently, you’re likely familiar with the concept of smart contracts.

Smart contracts are the backbone of NFT ownership. When an NFT is minted, it is encoded onto the blockchain through a process that verifies its authenticity and assigns ownership. This automated process helps ensure transparent and secure transactions.

Once an NFT is minted, the attached smart contract comes into effect, clearly delineating ownership and any associated rights.

What Is A Smart Contract?

It’s important not to conflate a smart contract with a traditional legal contract despite the shared terminology. In essence, smart contracts are self-executing programs on the NFT blockchain that automatically enforce the terms of a sale when certain conditions are met. They do not require the same manual intervention, signatures, or review processes as conventional contracts.

Nonetheless, smart contracts are extremely useful for streamlining online transactions, authenticating ownership, and executing the sale of NFTs – which is particularly valuable in today’s fast-paced digital market.

However, while they automate many aspects of the transaction, smart contracts are limited in scope and may not address every legal nuance. This is where additional legal agreements can provide further protection.

Smart contracts might include specific clauses that grant extra ownership or licensing rights, details that are also often reflected in the accompanying T&Cs for the NFT sale.

Do I Need A Licence Agreement For NFTs?

While there is no statutory requirement to secure a Licence Agreement for your NFTs, it is a prudent step to consider. A smart contract may facilitate the transfer of an NFT, but it generally does not offer the full spectrum of rights that come with copyright ownership.

Remember that NFTs remain subject to traditional copyright laws. While a smart contract confirms the sale of the NFT, it does not inherently grant licensing or selling rights over the underlying content. This is where a separate agreement can provide the additional rights and legal protection you need.

If you are looking to purchase an NFT with the intent to secure rights such as licensing and resale, you will likely require an agreement that explicitly provides these privileges.

Where Can I Get A Licence Agreement For My NFT?

It’s advisable to engage a legal professional to draft a Licence Agreement tailored specifically for your NFTs. Such an agreement can clarify rights related to reproduction, distribution, and further licensing, ensuring robust protection that aligns with your unique business needs in 2025.

A Licence Agreement generally addresses:

The territories or regions where the agreement applies
Payment terms
The exclusivity of the licence
The duration of the licence
Transferability of the rights
The specific purpose for which the licence is granted
The conditions under which the licence may be revoked (if applicable)

Our experienced lawyers at Sprintlaw can help you draft a comprehensive Licence Agreement that secures additional rights and protects your interests when dealing with NFTs.

Do I Need Terms And Conditions For My NFT?

It’s also prudent to have clearly defined terms and conditions for your NFT transactions. Such terms not only dictate how your NFTs can be used but also help limit your liability in the event of disputes or unforeseen issues, which is especially important given the evolving regulatory landscape in 2025.

If you’re running a business website that sells NFTs, the website terms and conditions can also outline the specific conditions of sale. For instance, if you are the original creator selling limited edition copies of your work, your terms can clearly state that you retain the copyright and intellectual property rights over the original content.

If you require customised terms and conditions for your NFT business, our team can help discuss the necessary rights and protections and draft tailored T&Cs to suit your business model.

As the NFT market evolves, emerging trends in blockchain interoperability and regulatory updates continue to shape the digital asset landscape. In 2025, staying informed about these changes is crucial. For further insights on legal considerations in the digital realm, you might explore our Intellectual Property Guide or review our Consumer Law resources.

Key Takeaways

As of 2025, NFTs remain a captivating avenue for digital investment, but it’s essential to understand the legal framework surrounding them. To summarise what we’ve discussed:

NFTs are non-fungible tokens representing unique digital creations.
Copyright protection is automatically applied to original works, but purchasing an NFT does not automatically transfer these rights.
Smart contracts govern the sale of NFTs but are limited in scope, often necessitating additional legal agreements.
Licence Agreements and customised Terms & Conditions can be used to secure extra rights and protect your interests.
Staying updated on the evolving legal and regulatory landscape is crucial in 2025.

If you would like a consultation about copyright and other legal aspects of NFTs, feel free to call us at 1800 730 617 or email team@sprintlaw.com.au for a free, no-obligations chat.

Sapna Goundan

Sapna has completed a Bachelor of Arts/Laws. Since graduating, she's worked primarily in the field of legal research and writing, and she now writes for Sprintlaw.

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