Quick Answer
India has no NFT-specific law. When you buy, mint, or license a digital asset, existing copyright, trademark, and contract law decide what you actually own. Buying an NFT transfers the token not the copyright in the underlying artwork unless a written agreement says otherwise.
Digital artists, brands, and gaming companies keep asking the same question: what do I actually own when I buy or mint an NFT in India? The answer sits in laws written long before NFTs existed. No statute in India mentions non-fungible tokens, the metaverse, or virtual goods by name. The Copyright Act, 1957, the Trade Marks Act, 1999, the Indian Contract Act, 1872, and the Income Tax Act, 1961 do the work instead.
This gap creates a dangerous assumption: that buying a digital asset transfers full rights over the work attached to it. It does not. This guide sets out what an NFT transfers, who owns the copyright in NFT-minted art, how trademark protection applies inside the metaverse, and how India taxes virtual digital assets. We stick to what current Indian law addresses, not what it might address later.
What an NFT Actually Transfers: Token vs Underlying IP
An NFT is a token on a blockchain that points to a digital file. Buying the token gives you ownership of the token. It does not give you the copyright in the artwork, video, or file the token links to.
This is the central misconception in NFT IP law India. Copyright and token ownership are two separate rights. The Copyright Act, 1957 governs the artwork. Contract and property principles govern the token. One transaction can transfer the token while leaving copyright entirely with the creator.
Section 19 of the Copyright Act, 1957 requires any assignment of copyright to be in writing and signed by the assignor. A blockchain transfer is not a signed written assignment of copyright. So unless the sale includes a separate written agreement assigning or licensing the copyright, the buyer gets the token and nothing more.
What a standard NFT purchase transfers by default:
- The token: ownership of the blockchain entry and the right to resell it.
- A personal-use link to the associated file, depending on the platform’s terms.
What it does not transfer by default:
- Copyright in the underlying work.
- The right to reproduce, adapt, distribute, or commercially exploit the work.
- Exclusivity: the creator can mint the same work again or license it elsewhere.
The lesson for buyers: read the licence attached to the NFT. The scope of your rights lives in that contract, not in the blockchain record.
Copyright in NFT-Minted Artwork: Who Owns What
Copyright in a digital work vests in its creator the moment the work is created. Minting that work as an NFT changes nothing about ownership. The creator still holds the copyright unless they assign it in writing under Section 19. For the complete copyright framework for content creators and digital artists, see our copyright guide for content creators.
This produces a clear rule for NFT copyright India. The person who minted the NFT is not automatically the copyright owner. Ownership depends on who created the work and whether any valid written assignment exists.
Three scenarios recur:
- Creator mints their own work. The creator holds copyright and the token. Selling the token does not transfer copyright unless the sale agreement says so.
- Buyer resells the NFT. The reseller transfers the token. They cannot transfer copyright they never owned.
- Someone mints work they did not create. No copyright passes, and the minting itself may infringe.
Can someone mint an NFT of work they found online?
No, not lawfully, without the creator’s authorisation. A work being publicly available online does not place it in the public domain. Copyright protection is automatic and does not depend on registration or a copyright notice.
Minting someone else’s artwork as an NFT reproduces and communicates the work to the public. Both acts are exclusive rights of the copyright owner under Section 14 of the Copyright Act, 1957. Doing them without permission is infringement, regardless of how the minter found the file. Public accessibility is not a defence.
Creators who find their work minted without consent can pursue the remedies the Copyright Act, 1957 provides – injunctions, damages, and account of profits alongside takedown requests to the hosting platform.
Trademark Protection in the Metaverse: Virtual Goods Classes
Trademark protection in India follows the goods and services a mark is registered for. This is where metaverse legal India questions expose a real gap. A trademark registered for physical goods does not automatically cover a virtual version of those goods sold inside a metaverse.
India uses the Nice Classification for trademark registration. A brand registered for physical clothing in Class 25 has protection for physical clothing. A digital garment sold as a wearable NFT for an avatar is a different product it typically falls under classes covering downloadable virtual goods and digital media, not Class 25.
The practical consequences for brands:
- A physical-goods registration may not stop a third party from selling virtual versions of your product in the metaverse.
- Brands entering the metaverse should file for the relevant virtual-goods and digital-media classes, alongside their existing physical-goods registrations.
- Early filing matters because the space is filling quickly, and a later applicant faces the same first-to-file pressures that apply to physical marks.
Altacit Global advises brands on which classes to file for when they plan metaverse or NFT activity, so their registrations match where infringement is actually likely to happen.
Does a brand need separate registration for the metaverse?
File the application with the PPVFR Authority. It must include the teca
In practice, yes a brand planning virtual-goods activity should file separately for the classes covering downloadable virtual goods and digital media. A physical-goods registration protects physical goods. It does not reliably extend to virtual counterparts sold in the metaverse. Passing off may offer a fallback where a brand has strong reputation, but a targeted registration is the stronger and faster route to enforcement. For the trade dress and product appearance protection framework that applies alongside virtual-goods trademark strategy, see our trade dress guide.
hnical questionnaire, the required denomination for the variety, the DUS data, and for a new variety the novelty declaration. The Authority examines the application and publishes accepted applications for public objection.
Third parties can oppose during the objection window. We prepare applications to withstand this stage, since a well-documented filing is far harder to challenge.
Regulatory Position: RBI, SEBI, and Crypto-Adjacent Assets
India regulates the money side of digital assets more directly than the IP side. No single regulator governs NFTs as a category. The position is assembled from tax law and financial regulation.
The Income Tax Act, 1961 defines a virtual digital asset (VDA) and taxes it under a dedicated regime introduced by the Finance Act, 2022. The rules that apply to VDA transactions:
Tax rule | Rate / requirement | Provision |
Tax on income from transfer of a VDA | 30% flat | Section 115BBH |
Health and education cess | 4% on the tax | Finance Act |
TDS on transfer of a VDA | 1% of consideration | Section 194S |
Two points matter for anyone buying or selling NFTs:
- The 30% rate is flat. You cannot set off losses from one VDA against gains from another, and you cannot deduct expenses beyond the cost of acquisition.
- The 1% TDS under Section 194S applies to the transfer itself, deducted at the point of the transaction.
On financial regulation, the Reserve Bank of India (RBI) has expressed caution on private crypto assets, and the Securities and Exchange Board of India (SEBI) regulates instruments that qualify as securities. Whether a specific NFT is treated as a security depends on its structure; an NFT sold purely as digital art sits apart from a token engineered to deliver investment returns. India has no comprehensive standalone crypto or NFT statute in force, so this analysis turns on how existing law characterises each asset.
Get NFT and Metaverse IP Advice from Altacit Global
The rights you hold in a digital asset depend on the contract behind it, the copyright in the work, and the trademark classes you have secured not on the token alone. Altacit Global advises digital artists, brands, and gaming and creative companies on NFT ownership, metaverse trademark strategy, and VDA compliance under current Indian law. Contact Altacit Global at info@altacit.com to protect what you create, buy, or license in the digital space.
Frequently Asked Questions: NFT Metaverse IP India
Q1: If I buy an NFT, can I use the image commercially?
Only if the licence attached to the NFT grants commercial rights. A standard NFT purchase transfers the token, not the copyright in the image. Under Section 19 of the Copyright Act, 1957, copyright transfers only through a written, signed assignment. Without that assignment or an express commercial licence, you can hold and resell the token but you cannot reproduce, sell merchandise from, or commercially exploit the image. Read the platform and collection terms before assuming any commercial right.
Q2: Can someone mint an NFT of a photo they found online without permission?
No. A photo being publicly available online does not make it free to use. Copyright is automatic and protects the photographer from the moment the photo is taken. Minting it as an NFT reproduces and communicates the work to the public both exclusive rights of the owner under Section 14 of the Copyright Act, 1957. Doing so without authorisation is infringement, and the owner can seek injunctions, damages, and platform takedowns.
Q4: Are NFT transactions taxed differently from regular income in India?
Yes. NFTs that qualify as virtual digital assets are taxed under a dedicated regime. Income from transferring a VDA is taxed at a flat 30% under Section 115BBH, plus a 4% cess, with no set-off of losses and no deductions beyond acquisition cost. A 1% TDS applies on the transfer under Section 194S. This differs sharply from the slab rates and deductions that apply to ordinary income.
