The rapid evolution of blockchain technology, particularly through Non-Fungible Tokens (NFTs) and Web3 platforms, is significantly transforming how brands are built, used, and protected. As more businesses and creators shift to decentralized environments, traditional trademark frameworks are being challenged in ways never seen before.
In 2025, NFTs are no longer just digital art; they are digital assets representing identity, ownership, and brand utility. Web3, meanwhile, redefines online interaction by offering decentralization, smart contracts, and user-controlled ecosystems. But what happens when trademarked brands enter this open, borderless, and anonymous environment?
This article explores how NFTs and Web3 are reshaping trademark law, what challenges are emerging, and how brands can navigate this new frontier to protect their intellectual property (IP).
Understanding NFTs and Web3 in Context
NFTs, or Non-Fungible Tokens, are unique digital assets stored on a blockchain, representing ownership over digital or physical items. Unlike cryptocurrencies like Bitcoin or Ethereum, NFTs are not interchangeable and each has a unique identifier.
Web3 refers to the next iteration of the internet — one that is decentralized and built on blockchain technology. It emphasizes user ownership, decentralized governance, and permissionless participation.
Together, NFTs and Web3 are empowering creators, gamers, developers, and consumers to monetize and interact in a brand-new digital economy. But as brand identities move into this space, the legal system is playing catch-up.
Trademark Fundamentals: The Traditional Model
Trademarks are legal protections granted for brand names, logos, slogans, and other identifiers that distinguish a business or product in the marketplace. They are typically tied to:
- Specific jurisdictions (national or regional)
- Registered classes of goods or services
- Actual commercial use
Trademark law has evolved in structured ecosystems — but Web3 doesn’t follow the same rules. In the decentralized internet, questions of jurisdiction, ownership, enforcement, and use become more complex.
Key Ways NFTs and Web3 Are Reshaping Trademark Law
1. NFTs as Branded Digital Goods
NFTs often carry branded images, names, or elements. From digital collectibles to wearable fashion for avatars, brands are being embedded into tokens. When these NFTs contain trademarked content, unauthorized use can amount to infringement — but enforcement is challenging.
Example: Nike’s virtual sneakers being sold as NFTs without authorization could be considered trademark infringement, even if those NFTs are created by independent artists on decentralized platforms.
Legal Impact: Trademark owners must now consider how their IP can be used, reused, or misused in digital tokens. Registrations may need to expand to cover “downloadable digital goods” and “virtual environments.”
2. Metaverse and Virtual Trademarks
Web3 platforms power decentralized virtual worlds — also known as metaverses. Within these, users can open virtual stores, create branded experiences, and sell virtual merchandise. This presents new avenues for brand interaction, but also for misuse.
Real-world case: Hermès sued an NFT creator over “MetaBirkins” — NFTs based on its iconic Birkin bag. Courts began to define how real-world trademarks extend into virtual assets.
Legal Trend: More brands are registering trademarks in Classes 9, 35, and 41 to protect virtual goods, retail services, and entertainment in digital spaces.
3. Anonymity and Enforcement Challenges
Web3 thrives on anonymity. Wallet addresses, not names or corporations, represent users. This makes identifying and holding infringers accountable far more difficult.
Example: If someone mints NFTs using a trademarked logo but hides behind a crypto wallet, how does a brand enforce its rights?
Legal Shift: Law firms are exploring blockchain analytics, subpoenas to NFT marketplaces, and decentralized identity verification to trace such users.
4. Smart Contracts and Licensing
NFTs often rely on smart contracts — self-executing code that can automate royalties, usage terms, or access rights. This introduces a new dimension to IP licensing.
Opportunity: Brands can embed licensing terms into NFTs themselves, offering clear rights of resale, use, or commercial reproduction.
Legal Consideration: Traditional IP contracts may need to evolve to accommodate smart contract-based terms, which are coded, immutable, and often public.
5. Trademark Squatting in the Metaverse
Just as domain squatting was rampant in the early internet, Web3 faces trademark squatting where users mint or register brand-related names, usernames, or NFTs without authorization.
Example: Someone registers “StarbucksDAO” on a decentralized social platform and offers NFT memberships. This could mislead users and damage the brand.
Trademark Risk: Companies need to monitor decentralized platforms and proactively register brand-related names, handles, and NFTs.
6. Global Jurisdictional Issues
Traditional trademark law is territorial. But in Web3, content can be accessed globally, instantly, and often from anonymous creators.
Challenge: A trademark registered in India may not stop someone in Brazil from selling NFTs using the same logo on a decentralized marketplace.
Possible Solution: International frameworks, like the Madrid Protocol, may be expanded or adapted to provide broader virtual protection. Until then, brands must consider multi-jurisdictional filings and digital surveillance.
How Brands Are Responding in 2025?
Major brands are not waiting to be infringed. They’re taking proactive steps to protect their trademarks in Web3 spaces:
- Registering new trademark classes for virtual goods and digital services (Class 9, Class 41, Class 42)
- Filing for NFTs and metaverse-related trademarks with specific wording like “downloadable virtual goods” and “digital collectibles”
- Partnering with NFT marketplaces to implement IP policies and takedown procedures
- Building internal Web3 legal expertise to understand smart contracts, token economics, and platform rules
- Creating their own NFTs to establish first use and digital presence
Legal Bodies and Policy Shifts
Legal institutions are beginning to respond to these developments:
- USPTO (United States Patent and Trademark Office) has issued guidance on NFT-related trademarks.
- EUIPO and Indian Trademark Offices are slowly adapting to accommodate virtual goods and NFT categories.
- Courts are setting precedents, such as the Hermès v. Rothschild case, clarifying that NFTs can indeed infringe trademarks if they mislead consumers.
Recommendations for Brand Owners
To navigate this fast-changing landscape, brand owners should:
- Audit existing trademarks to identify gaps in digital and virtual protection.
- Register new trademarks covering NFTs, digital goods, and metaverse services.
- Monitor NFT marketplaces and decentralized platforms for potential infringements.
- Establish enforcement mechanisms in collaboration with platforms.
- Educate internal teams about risks in tokenizing brand elements or launching NFT campaigns.
Conclusion
NFTs and Web3 technologies are not just digital fads — they are reshaping how trademarks are created, used, and enforced. As we enter a decentralized and digitally immersive future, brands must adapt their IP strategies to stay protected.
For trademark owners, the Web3 space is both an opportunity and a risk. While it offers new ways to engage audiences and monetize IP, it also opens the door to unauthorized use, imitation, and legal ambiguity.
At Corpmate, we help businesses and creators stay ahead of these changes. From registering metaverse-ready trademarks to enforcing digital rights across platforms, our team ensures that your brand is protected in every layer of the internet — including Web3.
Need help navigating trademark law in the world of NFTs and Web3? Contact Corpmate for expert legal guidance.