Web3 and IP: why brands need a plan
Ahead of his appearance at this week’s WIPR Trademarks Live, Appdetex CEO Rick Farnell has shared his thoughts on the IP implications of web3.
Farnell, who is speaking in “ Keynote Fireside Chat: NFTs The rise and rise of the non-fungible token: What are the key considerations?” will be joined by Greenberg Traurig shareholder Marc Trachtenberg
WIPR Trademarks Live runs from May 25-May 26, 2022. Register for free here.
WIPR: How should brands view non-fungible tokens (NFTs): as an opportunity or a risk?
Rick Farnell: Both. The wonderful and wild world of NFTs provides a great opportunity to promote and enhance brands in the digital world, the web3 economy and the metaverse.
NFTs, and the underlying technologies of blockchain platforms and cryptocurrencies, give brands the opportunity to reach new audiences with new strategies to promote engagement and brand affinity, especially with millennials and new economy enthusiasts.
However NFTs also present risks as it is very easy for bad actors to create and distribute NFTs that not only infringe on brand, trademarks and IP, but also open the door to new types of phishing attacks, counterfeiting, and pirated content.
Companies need to be very thoughtful on their overall NFT strategy and should include a brand abuse and mitigation strategy before the launch of their NFT and web3 strategy.
What are some potential TM risks brands should be aware of?
It is very easy for anyone with a web3 wallet to create and distribute content of any type. Copying trademarked works is very easy with no checks and upfront validation requirements. Also, web3 is by design meant to provide new levels of anonymity as individuals are able to obfuscate their identity and hide behind their crypto wallet address(es), making investigations and takedowns more challenging.
Can you outline some of the opportunities for brands?
Brands can use NFTs as a new way to connect with customers by creating unique digital collectables that can give customers new ways to identify with and support brands.
NFTs are also being used to provide access to loyalty programmes, new benefits, the metaverse and a private community of brand enthusiasts. Having a well thought out, end to end NFT strategy can provide brands with new ways to connect with customers and further brand engagement and loyalty but brands must be very thoughtful about how they will protect and promote their brand and products in this new, largely unregulated world.
What should a brand do if it does spot an infringement?
Brands should partner with the leading digital brand protection managed services platform to get ahead of abuse by continuously monitoring NFT marketplaces (eg Opensea and Rarible) and web3 social platforms (eg Discord and Telegram).
Proactive monitoring will identify brand infringement early and broadly enable brands to understand how their brand and products are being presented in the web3 world. Brands can then use abuse tracing platforms to track and correlate infringement across the broader ecosystem of web2 properties providing a lens into larger networks of abusers.
Once there is a broad view of the infringement issues, brands should then work with the platform providers on the most efficient investigation and enforcement approaches.
What lessons can brands draw from the NFT issue and participation in the metaverse?
Web3 is here to stay despite the recent downturn in the crypto markets. Having an end-to-end brand promotion and enforcement strategy ahead of launching large scale NFT projects will not only provide better brand protection but will also accelerate brand promotion and affinity to the new audiences that are engaging via NFTs.
We have seen first-hand that brands who engage us ahead of NFTs launches are able to head off phishing attacks and other forms of brand abuse that create a negative customer experience.
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