David Rose is a partner in Pryor Cashman's Litigation, Media + Entertainment, and Sports practices, a member of the Firm's Executive Committee, and a co-chair of the Alternative Dispute Resolution practice. Rose recently sat with the Daily Report to discuss emerging issues related to popular digital assets known as NFTs or non-fungible tokens. According to law.com:
David Rose, a partner at Pryor Cashman in New York City, said as NFTs continued to gain popularity, he anticipated seeing an uptick in cases related to fraud.
"The irony of it all is that an NFT is supposed to denote unique and singular ownership of something. It's supposed to basically create a sense of legitimacy in terms of authenticity," Rose said. "But what you're seeing now is that there are fraudulent NFTs being put up on NFT marketplaces."
The commercial media and entertainment litigator said the emergence of fraudulent NFTs could result in marketplace platforms being sued by duped buyers. With NFTs perceived as commercial assets by many, Rose said opportunities for litigation extended to potential government seizures of NFTs, as well as a "perceived need to regulate" the digital assets.
In preparation of such emerging litigation, Rose said he'd created an interdisciplinary group of more than a dozen lawyers at his firm from entertainment, fintech, IP, regulatory, securities and tax practice areas to ensure client concerns regarding NFTs could be both anticipated and addressed quickly.
"NFTs touch so many different legal disciplines," Rose said. "You need to know who knows what you don't know who's in your firm, so that you can take care of the issues in a proactive and affirmative way and anticipate issues that are going to arise, again, as this space develops."
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