Using Logos in an NFT Project

Can and Can’t

Using a company’s logo in an NFT project, or any copyrighted or trademarked material, without permission can lead to legal issues. Here’s a general breakdown of what you can and can’t use:

What You Can’t Use Without Permission:

Company Logos/Trademarks: These are typically protected by trademark laws. You must get explicit permission or a license from the company to use their logo in your NFT project.
Copyrighted Material: Any images, music, video clips, or text created by someone else that is copyrighted cannot be used without obtaining the proper licenses or rights.
Celebrity Likenesses: Using a celebrity’s image or likeness without permission may infringe on their right of publicity, which protects against unauthorized commercial use.
Brands and Products: If a product is identifiable (like a Nike shoe), you cannot use it in an NFT without permission.
Artworks by Others: Whether it’s digital or physical art, you cannot include someone else’s work in your NFT unless they’ve granted you permission.

What You Can Use:

Your Own Creations: Anything you create from scratch (logos, designs, music, etc.) is fair game. This includes new, original content, logos, or artwork.
Licensed Material: If you acquire a license or obtain permission to use certain material (like a logo or piece of art), you’re good to go, but follow the licensing agreement terms carefully.
Public Domain Content: Works that are no longer under copyright (due to age, such as many works before 1923) can be freely used, but double-check before using.
Creative Commons Licenses: Some artists and creators allow others to use their work under a Creative Commons license. Be sure to review the terms (e.g., whether it allows commercial use).

What to Do:

Reach Out for Permission: If you want to use a company’s logo, contact them to discuss licensing agreements.
Consult a Lawyer: For larger projects, especially if you’re unsure about what you can legally use, getting legal advice is wise.

If you use a picture of yourself and a Nike logo is visible on your shirt, you could potentially run into trademark issues. Even though it’s your own image, Nike’s logo is a protected trademark. Here’s what to consider:

Trademark Concerns:

Trademark Law: Nike’s logo is a highly recognizable trademark, and using it without permission in a commercial project, such as selling NFTs, could be seen as implying an association or endorsement by Nike, which could lead to legal trouble.
Commercial Use: Since NFTs are often sold or traded, using a logo like Nike’s could be interpreted as commercial use, which is where most legal issues arise. Even if it’s just incidental, like the logo appearing on your shirt, it could still pose a problem if Nike perceives it as unauthorized use of their brand for profit.

Options to Avoid Issues:

Alter the Image: You could edit the image to remove or blur the Nike logo to avoid any potential issues.
Seek Permission: Though this can be difficult with large companies like Nike, you can always try to contact them for permission.
Use a Non-Branded Shirt: Take a new picture without any visible logos or brands, which ensures you’re not unintentionally infringing on trademarks.

The Likelihood of Being Pursued:

For a small project, you might not get immediately flagged, but there’s always a risk. Big brands like Nike are protective of their trademarks, and they often monitor commercial projects for unauthorized use.

How does making the Nike logo transformative play into copyright.

Making the Nike logo “transformative” can potentially provide a legal defense under copyright or trademark law, but it’s a complex area that depends on how the logo is used and the nature of the transformation.

Here’s how it works:

Transformative Use in Copyright Law:

In copyright law, the concept of transformative use is part of the fair use doctrine. To qualify as fair use, the use must add something new or change the original work in a way that gives it new meaning, expression, or purpose. It’s not just about making small alterations; the use must significantly transform the original in a creative or meaningful way.

However, logos like Nike’s are usually more protected by trademark law, rather than copyright. Trademark law protects the brand’s identity, which raises different legal questions.

Transformative Use in Trademark Law:

In trademark law, the concept of “transformative use” is less established, but you could argue for a parody or artistic transformation defense. However, the key is whether your transformation creates confusion or diminishes the brand’s value.

Parody or Commentary: If your use of the Nike logo is transformed in a way that comments on, critiques, or mocks Nike (such as a parody), courts may view it as non-infringing. This would have to be clear to viewers—if they see it as a critical or artistic statement rather than an endorsement.
Non-Commercial, Artistic Transformation: In some cases, if you transform the logo in a way that clearly does not aim to benefit from the Nike brand’s commercial value but instead offers social commentary or artistic expression, it may be more likely to be considered fair use.

Challenges of Using Transformative Use as a Defense:

Likelihood of Confusion: Trademark law focuses on whether the public might be confused into thinking Nike endorses or is associated with your work. Even a transformative use could face legal challenges if it looks like Nike is sponsoring or approving your NFT project.
Dilution of the Brand: Even if there’s no confusion, if Nike believes your use of the logo dilutes its brand (making it less distinctive), they might still pursue legal action.

Key Factors to Consider:

Degree of Transformation: Is the logo heavily modified, or is it only slightly altered? More substantial changes (e.g., turning it into satire or making it part of a broader artistic work) are more likely to be considered transformative.
Purpose: If you’re using the logo for purely commercial purposes (e.g., to sell NFTs), the defense becomes harder. If it’s for commentary or parody, you have a stronger case.
Market Impact: If your NFT competes with Nike’s branded products or creates a market for “Nike NFTs” without Nike’s involvement, they’re more likely to view it as infringement.

Example:

Not Transformative: Slightly altering the swoosh color or adding small details would likely not be transformative.
Possibly Transformative: Turning the Nike swoosh into an abstract work or satire that mocks consumer culture (like placing the swoosh in a dystopian setting) could be considered transformative.

Bottom Line:

While transformative use might be a defense, it’s a gray area in trademark law, and companies like Nike are very protective of their brand. If you’re considering using the Nike logo in an NFT and altering it, be prepared for potential legal challenges. You might want to consult an IP lawyer to gauge the risk based on your specific project.