Decoding Digital Ownership: Crypto Tokens and the Law

Crypto tokens are a hot topic, but the law is still catching up. Many lawyers shy away from the tech side of things, which is a problem. To give solid legal advice, you need to understand the tech behind crypto. This piece tries to bridge that gap. It looks at how crypto-assets fit into property rights in the digital world. Crypto-assets are different from physical things. They live on decentralized networks and can't be easily deleted. This makes them more like intellectual property than physical objects. The article uses examples from different legal systems, like common law (U. S. , U. K. , New Zealand) and civil law (Germany, Austria, Poland), to show how this plays out. The article suggests a big-picture approach to digital ownership. It argues for a framework that protects data ownership beyond just Web3. This could mean clearer rules for who owns what in the digital world. The piece also digs into the layers of ownership for virtual goods. It breaks it down into three parts: rights to the virtual good itself, rights to linked assets, and rights to the intellectual property tied to the token. This is important for the metaverse, where virtual goods are becoming a big deal. But it's not all smooth sailing. The article points out conflicts in laws across different places. It also looks at issues like transferring intellectual property rights, licensing, and the first sale doctrine. These are all crucial for understanding ownership in the digital age.