Understanding NFTs and Why They Matter for Indian Creators
In recent years, Non Fungible Tokens (NFTs) have opened up new avenues for digital creators whether you’re an artist, musician, photographer, or writer. NFTs offer a way to tokenize and sell your work using blockchain, providing a certificate of authenticity and ownership that’s tamper proof.
The Indian NFT market is expected to touch a staggering $152.54 billion by 2030 (Statista, 2025). But while this technology is revolutionizing creative industries, it also introduces a host of legal grey areas especially around copyright.
Can someone resell your NFT artwork on merchandise without permission? What if your work is “minted” into an NFT by someone else without your knowledge? This blog breaks down the legal challenges and solutions under Indian copyright law, drawing insights from international cases to help Indian creators stay protected.
The Legal Disconnect: NFTs vs. Copyright Law in India
Under the Copyright Act, 1957, creators in India are granted exclusive rights to reproduce, distribute, and publicly display their original work (Section 14). This includes literary, musical, artistic, and dramatic works.
But here’s the catch buying an NFT doesn’t mean owning the copyright. Unless the seller explicitly transfers copyright through a written agreement (as required under Section 19), the buyer only owns the NFT not the creative rights to the content.
Case in Point: In Miramax v. Tarantino (2022), the film studio sued director Quentin Tarantino for minting NFTs from his Pulp Fiction script, arguing that NFT rights weren’t part of his original contract. In India, such a scenario would also raise red flags under Section 57, which safeguards the moral rights of authors, protecting them from distortion or misuse of their work.
The Rise of Unauthorized NFTs and Platform Liability
Unauthorized minting creating NFTs from copyrighted content without consent is a serious issue. Under Indian law, this would fall under Section 51 as copyright infringement.
A major international case, Ma Qianli v. Bigverse (2022), saw a Chinese court hold an NFT platform liable for hosting NFTs of an artist’s work without permission. Indian platforms like WazirX could face similar liability under the Information Technology Act, 2000 (Section 79) if they fail to carry out due diligence.
In the UK, artist Ludwig Holmen discovered his artworks being sold as NFTs without his consent on OpenSea. These cases show that decentralized platforms often lack accountability and that’s where better legal frameworks are needed.
Big Data & Blockchain: A Blessing or a Burden?
NFTs depend on metadata which includes creator information, sales history, and ownership records. This big data can help track the authenticity of digital assets but also makes it harder to detect copyright violations at scale.
In the Bigverse case, the platform failed to verify the volume of data linked to NFTs. In India, the Digital Personal Data Protection Act, 2023 (DPDP Act) now places stricter responsibilities on platforms to handle such data responsibly, especially when it contains personal or identifying information.
Can Smart Contracts Help?
Smart contracts automated programs built into NFTs allow creators to earn royalties every time the NFT is resold. A famous example is Beeple’s NFT artwork, which sold for $69 million at Christie’s in 2021.
Indian law aligns well here. Section 19(8) of the Copyright Act supports the idea of structured licensing. But the global enforceability of smart contracts is still evolving. As legal scholar Dr. Andres Guadamuz points out, an NFT is often more of a “digital receipt” than a legal guarantee so creators must still ensure proper copyright documentation.
What India Can Learn and Implement
To tackle the legal challenges posed by NFTs, India could benefit from these globally tested strategies:
1. Clear Licensing Framework
India can mandate that all NFT sales include a clear, written license under Section 19, clarifying whether the buyer has commercial rights or display rights only.
2. Verification Protocols for NFT Platforms
Before minting, platforms should be legally required to verify that the content creat or owns the rights. China now enforces this, and India can incorporate similar safeguards under the IT Rules, 2021.
3. Blockchain Copyright Registry
Inspired by the EU’s Mycelia Project, India can develop a blockchain based copyright registry through its e Courts or Copyright Office, allowing creators to showcase copyright ownership securely.
4. Takedown Mechanisms (DMCA style)
In the U.S., the DMCA enables quick removal of infringing NFTs. India can adopt a similar process under Section 53 of the IT Act, empowering creators to file takedown notices efficiently.
5. Creator Education Campaigns
The World Intellectual Property Organization (WIPO) emphasizes that creators need to understand their NFT rights. India can launch awareness drives on metadata standards, like ERC 721, and moral rights under Section 57.
6. Cross Border Legal Alignment
India should engage with WIPO’s IP SAFE initiative to help align local copyright laws with international IP standards especially as NFT ownership and resale often involve foreign platforms.
Final Thoughts: Protecting Indian Creators in the NFT Era
NFTs are more than a trend they’re becoming a cornerstone of the creator economy. But if Indian law doesn’t evolve with technology, creators may find themselves unprotected.
By building a balanced legal ecosystem grounded in transparency, accountability, and education India can empower its creative community to thrive without fear of copyright exploitation.
At RIRIRI Law Firm, we’re actively tracking digital IP trends to help creators, startups, and platforms navigate this fast changing space.
If you’re a creator looking to explore NFTs, we’re here to help you understand your rights.
Author by,
Ramadugu Shanmuk (Intern, NMIMS Hyderabad)
With guidance from Ananthakesavan V, Advocate – IPR & Litigation, RVR Associates