Who Owns The Copyright In NFTs? (2026 Updated)

NFTs are still a popular way to sell digital art, music, memberships, in-game assets and all sorts of “digital collectibles”. But one question keeps catching people out (on both the creator side and the buyer side): who actually owns the copyright?

The short version is this: buying an NFT usually does not mean you own the copyright in the artwork or content attached to it. You’re typically buying a token on a blockchain that points to something - and the legal rights depend on the contract terms (including marketplace terms) and how the NFT was minted and sold.

This article is current as at 2026 because the “standard” NFT sale terms, platform licensing models, and enforcement focus around online brand and content misuse have matured - so it’s even more important to set clear rules before you mint, buy, or sell.

What Are You Actually Buying When You Buy An NFT?

A lot of NFT disputes come from a simple misunderstanding: people treat NFTs like they’re buying the underlying asset (like buying a painting), when legally they’re often buying something closer to a digital certificate.

NFTs Vs Copyright: Two Different Things

An NFT (non-fungible token) is a unique blockchain record. It can:

• Prove a token was created (“minted”) at a certain time;
• Record wallet-to-wallet transfers of that token; and
• Include metadata that links to or describes a digital file.

Copyright, on the other hand, is a legal right created by the Copyright Act 1994 (NZ). Copyright protects original works like:

• artwork and illustrations;
• photographs;
• music and sound recordings;
• films and video;
• literary works (including many written or coded materials); and
• some digital assets and creative outputs.

Copyright generally gives the owner the exclusive right to do things like copy the work, publish it, adapt it, and communicate it to the public (for example, upload it online).

“But I Own The NFT, So I Can Use The Art, Right?”

Sometimes yes - but only to the extent you’ve been granted a licence (permission) or the copyright has been assigned (transferred) to you.

In most NFT sales, the buyer receives:

• ownership of the token; and
• a limited licence to display the artwork for personal, non-commercial use (often tied to holding the NFT).

Commercial rights (like printing the art on merch, using it in advertising, or building a brand around it) are not automatically included.

Who Owns The Copyright In An NFT Under NZ Law?

In New Zealand, the starting point is simple: copyright ownership usually sits with the creator of the work (the artist, photographer, musician, designer, etc.). That remains true even if the work is minted as an NFT and sold - unless something changes that ownership position.

The Default Rule: The Creator Owns Copyright

If you create an original artwork, you typically own the copyright in it. Minting an NFT doesn’t magically “move” copyright to someone else, because copyright transfer generally needs clear legal wording and intent.

How Copyright Ownership Can Change

Copyright can shift away from the creator in a few common ways:

• Assignment: the creator signs an agreement transferring ownership of copyright to someone else (often a business or buyer). This is where an IP Assignment becomes crucial.
• Employment: if a work is created by an employee in the course of their employment, the employer will often own the copyright (there are nuances here, so the employment contract matters).
• Commissioning/contracting arrangements: depending on the facts and the agreement wording, the person paying may receive ownership or a licence - but don’t assume payment equals ownership.

Moral Rights Still Matter

Even where copyright is assigned, NZ law recognises moral rights in many situations - like the right to be identified as the author, and the right to object to derogatory treatment of a work.

This becomes relevant with NFTs because artworks are often remixed, edited, combined into collections, or used as memes. If you’re planning to do anything beyond simply holding and displaying the NFT, you’ll want to check exactly what rights you have.

Trade Marks Aren’t The Same As Copyright

NFT collections often become “brands” - names, logos, catchphrases, character names, and so on. That’s where trade marks can become just as important as copyright, especially if you’re building a business around a collection. The difference matters in disputes and takedowns, so it’s worth understanding trade mark vs copyright early.

Common NFT Copyright Scenarios (And Where People Get Stuck)

Most NFT copyright issues don’t come from complicated law - they come from unclear relationships and missing paperwork. Here are some scenarios we see regularly.

Scenario 1: The Artist Mints And Sells Their Own Work

This is the cleanest scenario. The artist is the creator, they mint the NFT, and they sell it. Usually:

• the artist keeps copyright; and
• the buyer gets whatever licence is stated in the sale terms (if any).

If you’re the artist and you want buyers to have broader rights (for example, commercial usage), you should spell that out clearly in a written licence (and ideally in the listing terms and any off-chain agreement).

That’s where an IP Licence can be a practical way to set “you can do X, you can’t do Y” rules without giving up ownership of your work.

Scenario 2: Someone Else Mints Your Work Without Permission (NFT “Theft”)

Unfortunately, it’s still common for third parties to mint NFTs of artwork they didn’t create.

If someone mints your work without permission, that can involve:

• copyright infringement (copying/communicating the work without the owner’s permission);
• misleading conduct issues if buyers are led to believe it’s legitimate (relevant under the Fair Trading Act 1986); and
• potential platform terms breaches (marketplaces often prohibit infringing listings).

If you’re the rights holder, practical steps usually include collecting evidence (screenshots, wallet addresses, timestamps), checking where the file is hosted (on-chain vs off-chain), and using the platform’s takedown process. The legal position can be strong, but the enforcement pathway depends on the platform and the facts.

Scenario 3: You Pay A Contractor To Create NFT Art

Say you’re launching a collection and you hire a freelance artist to create 5,000 traits and characters. You pay them. You mint and sell.

If you don’t have a properly drafted agreement, you can end up in a messy grey zone where:

• you assumed you owned the rights because you paid; but
• the contractor believes they retained copyright; and
• the NFT buyers assume you had the right to sell licences in the first place.

This is one of the biggest reasons NFT projects get hit with disputes after they’ve launched.

For commissioned creative work, it’s common to document the deal in something like an Artist Commission Agreement so everyone is clear on ownership, licences, attribution, and what happens if the project pivots.

Scenario 4: An Employee Creates The Artwork For Your Business

If you have an employee creating content as part of their job (for example, an in-house designer for your game studio), copyright may belong to the employer if it’s created in the course of employment.

But it’s still important to have the right paperwork in place, including:

• clear job descriptions;
• confidentiality provisions; and
• IP ownership clauses.

It’s much easier to manage this upfront than to argue about it after a key employee leaves.

Scenario 5: The NFT Gives “Commercial Rights” But The Terms Are Vague

Some collections promise “commercial rights” to NFT holders. That can be a great model - but only if the permission is clear.

Common questions you should answer in plain language include:

• Is the licence worldwide or limited to certain countries?
• Is it exclusive or non-exclusive?
• Does it end if the NFT is sold?
• Is there a revenue cap (e.g. commercial use allowed up to $X per year)?
• Can the holder modify/remix the art?
• Can the holder use the name/logo of the project in branding?

If you’re relying on “smart contract text” or a marketplace description alone, you may not have enforceable clarity when things go wrong. A short, well-drafted licence can save you a lot of headaches later.

How Do You Protect Yourself When Minting, Buying Or Selling NFTs?

NFTs move fast. The legal side should still be set up properly - because once your tokens are in the wild, misunderstandings spread quickly and become hard to unwind.

If You’re Creating Or Launching An NFT Project

To protect your project (and to protect your buyers from being misled), aim to do the following from day one:

• Confirm you own the underlying rights (or have written permission/licences from the rights holder).
• Write clear licence terms for what NFT holders can and can’t do with the content.
• Use consistent terms across platforms (your website, Discord, marketplace listing, minting page).
• Don’t overpromise on utility, financial returns, or “guaranteed” benefits - the Fair Trading Act 1986 can apply to marketing statements.
• Think about brand protection (names, logos, and collection identifiers).

If you’re running your mint through a website, having proper Website Terms Of Use helps you set rules around access, acceptable behaviour, risk disclaimers, and how you’ll handle disputes.

If You’re Buying An NFT

If you’re buying NFTs as a collector, investor, or to use in a business, do a quick legal sense-check before you hit “buy”:

• Read the licence terms (not just the artwork description).
• Check who minted it and whether the creator is legitimate (look for official links and verified channels).
• Assume copyright stays with the creator unless there’s clear wording that transfers it.
• Be careful using the artwork commercially (ads, merch, product packaging, app branding) unless you have explicit permission.

If you’re buying for commercial use, consider getting a short written licence directly from the rights holder rather than relying on vague collection terms.

If You’re Building A Community Or Collecting Personal Data

Many NFT projects run on communities (whitelists, competitions, newsletters, token-gated access). If you’re collecting personal information (even just emails or wallet addresses linked to identities), you need to think about the Privacy Act 2020.

A clear Privacy Policy helps you explain what you collect, why you collect it, how you store it, and who you share it with (for example, mailing list providers).

Don’t Treat “On-Chain” As “Legally Enforceable” By Default

Smart contracts and blockchain records can be great evidence. But legal rights still usually come back to:

• who created the underlying work;
• what permissions were granted (and how clearly); and
• whether the agreement is enforceable under contract law principles.

In other words: the tech helps, but it doesn’t replace a properly written agreement when it comes to copyright ownership and licensing.

What Legal Documents Should You Have For NFT Copyright And Licensing?

If you’re operating an NFT business (or even a serious side project), the goal is to make sure everyone understands the deal and you’re protected if things go sideways.

Here are the documents that commonly matter.

NFT Licence Terms (Holder Rights)

This is the document (or set of terms) that tells buyers what they can do with the art/content while they hold the NFT.

It should cover things like:

• personal use vs commercial use;
• whether modification is allowed;
• whether sublicensing is allowed;
• how long the licence lasts (and whether it ends on resale); and
• any restrictions (hate speech, unlawful use, misleading associations, etc.).

Creator/Contractor Agreements

If anyone other than you is creating content (artists, animators, musicians, developers), you should have a written agreement that deals with:

• who owns copyright in the works created;
• what rights you have to mint NFTs from those works;
• whether the creator can reuse the work elsewhere;
• credit/attribution rules; and
• payment terms and approvals.

These agreements often link closely with an IP Assignment if you need full ownership, or an IP Licence if you just need permission to use and mint without owning everything outright.

Confidentiality (If You’re Sharing Your Project Before Launch)

NFT projects often involve early discussions with developers, marketing partners, and collaborators - and you may share your roadmap, artwork concepts, or utility mechanics before the public sees them.

In those cases, an NDA can help reduce the risk of someone taking your ideas, leaking your collection, or racing you to market.

Website Terms, Community Rules, And Disclaimers

If you’re running a project with a public-facing website or a token-gated platform, you’ll often want terms covering:

• acceptable user behaviour;
• removal/suspension rights for abusive or scam behaviour;
• how airdrops, perks, and utilities are administered;
• risk disclaimers (careful here - disclaimers don’t fix misleading marketing); and
• how disputes will be handled.

It’s usually much easier to manage community expectations when these rules are written down in one place, like Website Terms Of Use.

Key Takeaways

• Buying an NFT usually does not transfer copyright - you typically receive ownership of the token and only the licence (if any) stated in the terms.
• Under NZ’s Copyright Act 1994, the creator usually owns copyright by default, unless copyright is assigned or a specific legal exception applies (such as some employment situations).
• The biggest NFT copyright disputes come from missing agreements, especially where contractors or collaborators created the underlying artwork and the project assumed it could mint and sell.
• If you want NFT holders to have commercial rights, you need clear licence wording that spells out what “commercial use” means and when the permission ends.
• Marketing and project promises still need to be accurate - the Fair Trading Act 1986 can apply to misleading statements, even in Web3 projects.
• If your NFT project collects personal data (including identifiable wallet info), privacy compliance matters, and having a clear Privacy Policy is a practical starting point.

If you’d like help setting up NFT licence terms, confirming copyright ownership, or drafting the right IP agreements for your project, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.