Copyright Infringement and Damage Compensation Mechanisms in NFT and Digital Asset Transactions: A Legal Applicability Analysis Based on Blockchain Evidence

Abstract

The rapid development of the NFT (Non-Fungible Token) market has significantly increased the complexity and difficulty of copyright protection within modern digital transactions. This study focuses comprehensively on the infringement and compensation mechanisms inherent in NFT transactions, critically analyzing the fundamental conflicts between blockchain-recorded "ownership" and traditional copyright frameworks. By systematically evaluating public judicial judgments and empirical on-chain transaction data from major NFT platforms such as OpenSea and LooksRare, this research reveals that purchasing an NFT merely confers ownership of a specific cryptographic token on the blockchain, which does not automatically transfer the underlying copyright of the associated digital work. This critical distinction frequently precipitates severe intellectual property infringement issues. In terms of damages compensation, the extreme volatility and large fluctuations in NFT market prices make it exceptionally difficult to determine actual financial losses accurately. Furthermore, digital works currently lack a unified, standardized reference for licensing fees, and establishing a direct causal relationship between the alleged infringement and subsequent economic losses remains highly problematic. Meanwhile, although immutable blockchain records possess strong evidentiary power in reliably restoring transaction paths and tracing fund flows, they remain inherently limited in definitively determining whether unauthorized reproduction or illicit use has occurred off-chain. To address these critical gaps, this paper proposes an innovative method for calculating equitable compensation by integrating dynamic market prices with verifiable blockchain transaction records, and thoroughly discusses the evolving recognition standards for blockchain-based evidence across different global judicial jurisdictions.