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Abstract

Blockchain technology supporting cryptocurrency transactions is one of the most critical innovations of this decade. Establishing a legal identity on blockchain, however, is fraught with uncertainty. In the 1990s, the internet faced a similar set of issues, which were resolved through the ICANN dispute resolution system. This Article asserts that blockchain technology urgently needs a similar cohesive approach to NFT domains.

This Article will explore trademark issues with non-fungible tokens (NFTs), specifically NFT domains. It begins by exploring the fundamental structure of NFTs by demystifying the technology and showing how NFTs contrast with other currency regimes. Increased usage of NFTs has created novel intellectual property law issues. This Article then examines the history of unauthorized registration and use of domains identical or similar to trademarks, known as cybersquatting. Understanding the historical evolution of the internet domain name system is a crucial step in comprehending the risks associated with NFT domains disputes.

Traditional internet domain names are ultimately managed and overseen by a centralized authority, ICANN, which is a private nonprofit organization that sets the policy for the global Domain Name System. Unlike internet domain names, where ICANN developed a Uniform Dispute Resolution Policy and collision occurrence management framework, NFT domains have the potential to create domain collisions, both between extensions on the blockchain and with conventional domain name extensions. As the blockchain ecosystem continues to grow, its unregulated nature may increase the number of disputes and stoke mistrust in the system. This Article will compare two principal naming standards, centralized and decentralized. Despite the challenges of coordination in the decentralized world of blockchain, I argue that in the absence of law regulations, an effective system of governance is possible through self-regulatory organizations. Given the specific characteristics of the blockchain environment, I propose to establish a specialized blockchain entity, a Decentralized Autonomous Organization (DAO), that would deal with the governance of NFT domains and disputes relating to their collisions and those arising from their intersection with trademarks.

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