NFT Transferability and Rights Quiz

1. What do you purchase when you buy an NFT?

• Sole access to and control of the smart contract of the NFT stored on the blockchain.
• Exclusive rights to modify the artwork itself.
• A physical copy of the original artwork.
• A share of profits from the artwork`s sales.

2. Does an NFT automatically provide ownership or control of the copyright to the artwork linked to it?

• No, it does not.
• Yes, NFT ownership guarantees copyright.
• Yes, it does.
• Only if specified in the contract.

3. What is the purpose of a private key in NFT transactions?

• It enables the buyer to display the artwork publicly.
• It acts as proof of ownership for any physical copy linked to the NFT.
• It serves as a digital certificate of authenticity for the NFT.
• It allows the owner to control the smart contract of the NFT.

4. Can the purchaser of an NFT make copies of the original work without permission?

• No, all copies must go through the marketplace first.
• Yes, any NFT owner can make copies freely.
• Yes, the purchase includes all copyright rights automatically.
• No, unless the copyright owner transfers or licenses the copyright.

5. What is the default rule regarding copyright transfer in NFT transactions?

• The copyright does not transfer to the purchaser by default.
• The copyright is shared between the artist and the purchaser.
• The copyright automatically transfers to the purchaser.
• The copyright is transferred only for a limited time.

6. How is a transfer of all copyright rights to an NFT purchaser typically performed?

• It occurs automatically with the purchase of the NFT.
• It is called an assignment of the copyright and must be performed in writing.
• It is executed verbally during the transaction.
• It is done through a public auction process.

7. What is a license of copyright rights in the context of NFTs?

• It is the transfer of fewer than all of the copyright rights.
• It is the complete transfer of all copyright rights.
• It is the granting of exclusive access to the original artwork.
• It is an agreement to share the copyright forever.

8. What should the minter of an NFT consider when deciding what rights to transfer or share with the purchaser?

• The minter should consider the number of NFTs available in the marketplace.
• The minter should consider rights such as the right to display, copy, create derivative works, and commercially exploit the artwork.
• The minter should consider the color palette used in the artwork.
• The minter should consider the price at which the NFT is sold.

9. What are the rights typically included in a license to the purchaser of an NFT?

• The rights typically include the right to resell the original artwork, display it to the public without limitations, and create unlimited copies freely.
• The rights typically include the right to sell, dismiss any copyright claims, and entirely own the artwork with no restrictions.
• The rights typically include the right to use the artwork in advertisements, transfer the copyright, and change the artwork completely.
• The rights typically include the right to display, copy for specific incidental purposes, create derivative works, and commercially exploit the artwork.

10. Can an NFT purchaser stop others from making copies of the original work?

• Yes, an NFT allows unlimited reproduction rights.
• No, unless the copyright owner has transferred or licensed the copyright.
• No, the NFT automatically includes copyright ownership.
• Yes, always granting full control of the original work.

11. What happens if an NFT purchaser makes a copy of the original work without permission?

• The copyist only has a copy, while the NFT owner is the registered owner of the designated original copy.
• The NFT owner can sue the copyist for damages.
• The copyist becomes the owner of the original artwork.
• Both the copyist and the NFT owner share ownership of the original work.

12. How do NFTs work in terms of ownership and control?

• NFTs are created through minting, which involves encrypting and recording asset information on a blockchain, often with smart contracts that assign ownership and manage transfers.
• NFTs are just regular cryptocurrencies that operate solely on trading platforms, without any connection to ownership.
• NFTs allow individuals to possess physical copies of the artwork, meaning they own both the digital and physical versions.
• NFTs grant total ownership of the original artwork and all associated rights to the purchaser instantly.

13. What is the unique identifier associated with each NFT?

• Each NFT has a unique identifier directly linked to one blockchain address.
• Each NFT comes with a general category label like `art` or `music.`
• Every NFT is associated with an artist`s signature.
• NFTs are identified by their minting date and time.

14. Can multiple NFTs of the same item be minted?

• No, NFTs are exclusive and cannot be duplicated.
• No, only one NFT can exist for each item.
• Yes, but all tokens are identical copies with no unique identifiers.
• Yes, but each token has a unique identifier and can be distinguished from the others.

15. What is the implication of buying multiple NFTs of the same artwork?

• All purchasers own a share of the artwork and can use it freely.
• Each purchaser has sole access to and control of their respective NFTs, but they do not collectively own the artwork.
• Purchasing multiple NFTs grants full ownership rights to the artwork itself.
• Multiple NFTs mean that the artwork is now considered a public domain work.

16. How do NFT transactions affect related IP rights?

• NFT transactions completely eliminate any copyright restrictions for the purchaser.
• Many NFT transactions provide a narrow license grant to use the NFT content and may include various restrictions or limits.
• NFT transactions automatically grant full ownership of the copyright to the purchaser.
• All NFT transactions transfer all intellectual property rights to the buyer.

17. Is verification of copyright or trademarked ownership required for NFT marketplaces?

• Verification is only required for physical artworks.
• Verification is optional and rarely enforced in NFT marketplaces.
• No, verification is not required for NFT marketplaces.
• Yes, verification is mandatory for NFT marketplaces.

18. What is the situation regarding copyright ownership when purchasing an NFT?

• The NFT purchaser automatically owns all copyrights to the artwork purchased.
• The NFT purchaser gets exclusive rights to sell copies of the artwork.
• The NFT purchaser has no copyrights to the artwork unless the NFT creator draws up a licensing agreement to actively transfer the rights.
• The NFT purchaser has full control over the original artwork and its reproduction.

19. What is the difference between purchasing an NFT and owning the artwork itself?

• Purchasing an NFT includes rights to reproduce and sell the artwork.
• Purchasing an NFT gives the buyer the original physical artwork.
• Purchasing an NFT automatically grants full copyright of the artwork.
• Purchasing an NFT provides the buyer with simply a tokenized version of the work, not the artwork itself.

20. How do NFTs represent digital assets?

• NFTs represent digital assets by allowing unlimited reproduction of the artwork.
• NFTs represent digital assets by granting copyright to the purchaser automatically.
• NFTs represent digital assets by providing physical ownership of the artwork.
• NFTs represent digital assets through blockchain-traceable digital certificates of ownership.

21. What is the role of smart contracts in NFT transactions?

• Smart contracts create physical copies of digital art.
• Smart contracts handle customer service for NFT buyers.
• Smart contracts determine the price and negotiate sales.
• Smart contracts assign ownership and manage NFT transfers.

22. Can an NFT purchaser reproduce their portion of the artwork without permission?

• Yes, buyers can replicate any NFT artwork freely.
• No, unless the copyright owner transfers or licenses the copyright.
• No, they can make copies for personal use only.
• Yes, it depends on the type of NFT purchased.

23. What happens if multiple NFT purchasers try to reproduce the same artwork?

• Each purchaser can only reproduce their respective portion of the artwork if the copyright owner has transferred or licensed the copyright.
• All purchasers can reproduce the artwork freely without permission.
• The first purchaser has exclusive rights to reproduce the artwork.
• Reproduction rights are shared equally among all purchasers regardless of copyright.

24. How do NFTs apply to intellectual property laws?

• NFTs transfer ownership of the original artwork along with the digital token.
• NFTs eliminate the need for copyright in digital art transactions entirely.
• NFTs apply to intellectual property laws in the same way as physical artworks, with the default rule being that the copyright does not transfer to the purchaser.
• NFTs automatically grant full copyright rights to the purchaser upon sale.

25. What are the implications of using Creative Commons licenses with NFTs?

• It prevents any sharing or distribution of the artwork by anyone.
• It guarantees that all NFT owners can use the work commercially without limitations.
• It allows NFT purchasers to claim full ownership of copyright automatically.
• Using Creative Commons licenses can involve sharing, giving away, or giving up all rights to the artwork linked to the NFT.

26. Can an NFT purchaser create derivative works without permission?

• No, unless the copyright owner transfers or licenses the copyright.
• No, purchasers have unlimited rights to use the artwork.
• Yes, any purchaser can create derivative works freely.
• Yes, NFT holders have full rights to modify artworks.

27. What should NFT creators consider when drafting license terms?

• NFT creators must write down every term in a verbal agreement with buyers.
• NFT creators are not required to include any restrictions or terms.
• NFT creators should consider rights such as the right to display, copy, create derivative works, and commercially exploit the artwork.
• NFT creators only need to provide a digital copy of the artwork with purchase.

28. How do NFT transactions affect the exclusive right to reproduce and display a work?

• The exclusive right to reproduce and display a work transfers automatically with the NFT.
• The exclusive right to reproduce and display a work is irrelevant in NFT transactions.
• The exclusive right to reproduce and display a work is granted to the NFT purchaser by default.
• The exclusive right to reproduce and display a work remains with the copyright owner unless they choose to transfer or grant a license.

29. What is the situation regarding trademark and patent rights in NFT transactions?

• Patent rights are irrelevant in NFT transactions.
• The rules regarding trademark and patent rights are separate from copyright and apply differently to NFTs.
• Trademark rights automatically transfer with NFT purchases.
• All intellectual property rights are included when buying an NFT.

30. Can an NFT purchaser stop others from commercially exploiting the artwork?

• No, unless the copyright owner has transferred or licensed the commercial exploitation rights.
• No, the buyer holds exclusive rights to the artwork.
• Yes, automatically with the purchase of the NFT.
• Yes, unless the creator allows it.