The Rise of Celebrity NFTs And The Legal Grey Zone Of Image Rights.

NFTs (Non-Fungible Tokens) basically are digital assets which can be in form of videos, photos, game items etc. and are somewhat similar to cryptocurrencies but with different demand and supply game. Both work on blockchain technology. With the emergence of NFTs in mainstream media, it caught the attention of many celebrities when they understood the power of it. This blog dives into the fuzzy legal terrain of celebrity NFTs in India, where the law is still finding its footing in a virtual world that’s evolving faster than the courts can catch up.

The Rise of Celebrity NFTs:

From Amitabh Bachchan releasing his father’s poems as NFTs to international icons like Justin Bieber and Snoop Dogg selling digital avatars, the NFT wave is impossible to ignore.[1] These one-of-a-kind digital assets, stored on a blockchain, offer an entirely new way for celebrities to monetize their persona. But with this new medium comes a set of old legal questions in a new disguise especially concerning who owns what, and who gets to profit from it.

Personality Rights in India:

In India, the right to publicity isn’t written down as a specific law, but courts have talked about it in some important cases. In ICC Development (International) vs. Arvee Enterprises (2003), the Delhi High Court said that no one is allowed to use someone’s photo or identity to make money without their permission.[2] Later, in Titan Industries vs. Ramkumar Jewellers (2012), the same court said that celebrities have the right to control how their name or image is used for commercial purposes.[3]

But these judgments were mainly about regular advertising and traditional media. Things get more complicated when it comes to NFTs (non-fungible tokens). With NFTs, the same photo or likeness of a celebrity can be turned into a digital asset and sold again and again on global platforms. The big question is does this count as a violation of their publicity rights? Right now, there’s no clear legal answer.[4]

The Legal Grey Zone:

NFTs are not inherently illegal, but the use of a celebrity’s image without authorization may amount to infringement of publicity rights and potentially passing off under IP law.[5] Indian laws do not explicitly regulate NFTs, the courts in India are more likely to follow the already established principles of law like torts, copyright, personality rights etc.

A hypothesis- what if someone mints an NFT of a famous boxer’s final blow without their consent which could be amount to misappropriation but what if it is just a digital sketch or just a meme? The line between fan expression and commercial exploitation is thin and legally ambiguous.

Can Copyright Law Help?

NFTs often include art that’s based on real people, like digital drawings or edits. In these cases, copyright rules might apply especially if the new art looks a lot like an existing photo or video. But when it comes to image rights, Indian copyright law is limited. The face or name of a person is not protected under copyright unless it is part of a creative expression (like a photo or film still).[6]

So, celebrities in India usually have to depend on contracts or general legal rights to stop others from misusing their image. The problem is, these rules aren’t always applied the same way in every court.[7]

The Way Forward:

India has yet to pass specific legislation around NFTs or digital image rights.[8] Without any legislation regarding the NFTs regulation, the market gets flooded with unauthorized use of public personalities without any consequence. A possible way forward could be recognizing personality rights as a separate statutory category under the IP regime, much like the Right of Publicity in the United States.[9] The Consumer Protection (E-Commerce) Rules, 2020 offer some guidance on consent and digital misrepresentation, but they are not tailored for NFTs.[10] Given the global nature of these tokens, jurisdictional enforcement is another challenge, especially when platforms mint and trade NFTs abroad.[11]

Conclusion:

Celebrity NFTs aren’t just a passing online trend they’re changing the way we think about fame, identity, and ownership in the digital world. They open up exciting new ways for public figures to connect with fans and earn from their image. But at the same time, they highlight some serious holes in India’s legal system when it comes to protecting someone’s face, name, or personality. As technology keeps racing ahead, the law can’t afford to stand still. Instead of trying to fight change, it needs to adapt rethinking how we protect people’s rights in a world that’s becoming more decentralized day by day.

Author: Arpit Kesari, in case of any queries please contact/write back to us via email to [email protected] or at IIPRD. 

[1] Indian Express, “Amitabh Bachchan’s NFT Auction Raises Rs 7.18 Cr”, 2021

[2] ICC Development (International) vs. Arvee Enterprises, 2003 (26) PTC 245 (Delhi HC)

[3] Titan Industries Ltd. v. Ramkumar Jewellers, CS(OS) 2662/2011 (Delhi HC)

[4] LiveLaw or Bar & Bench Commentary on Emerging NFT Laws in India

[5] WIPO Guide on IP and NFTs, 2023

[6] Indian copyright law commentary – legal textbooks or NLSIU blogs

[7] Academic discussions on personality rights in India

[8] Current Indian legislation: no NFT-specific provisions

[9] U.S. Right of Publicity: Zacchini v. Scripps-Howard Broadcasting Co., 433 U.S. 562 (1977)

[10] Consumer Protection (E-Commerce) Rules, 2020

[11] Cross-border NFT enforcement commentary by NALSAR/NLIU blogs