Quoted

February 10th, 2023

Now That Birkin NFTs Are Illegal, What Happens to the Ones Collectors Bought?

Blockchain Technology Co-Chair Jeremy S. Goldman is quoted in the article, “Now That Birkin NFTs Are Illegal, What Happens to the Ones Collectors Bought?” published by Observer. The article discusses the landmark case between Hermès and MetaBirkin creator, Mason Rothschild and the challenges associated with destroying the NFT collection. Jeremy is quoted saying, “Taking the MetaBirkins off the market will be nearly impossible. It’s a real unanswered question with blockchain: what happens in the event of infringement?”

Jeremy notes that in typical infringement cases regarding physical goods, a positive ruling would allow a company to impound and destroy the assets. He says, “It’s very difficult to get rid of the tokens or de-link the artwork.” While Hermès can prevent major NFT marketplaces from selling the MetaBirkins, there is not much they can do to prevent the collection’s sale outside of that. Jeremy adds, “It’s not so different than what happens in the real world If a manufacturer creates counterfeit goods, there’s not much control once they’ve left. It’s very hard to put that genie back in the bottle.”

Jeremy also notes that the value of MetaBirkins may see a bump in demand because of their new status as contraband. He identifies customer recourse as another issue made complicated by the digital nature of the case. He says, “Owners of physical assets typically have recourse against those who sell them counterfeit goods, such as fake luxury bags. It’s still unclear whether MetaBirkin holders can extract compensation from Rothschild.”

Read the full article here.