On February 22, 2023, a federal judge in the Southern District of New York issued a first-of-its-kind order allowing a securities class action lawsuit to proceed against the issuer of non-fungible tokens (“NFTs”) on the grounds that the NFTs are securities for purposes of federal securities laws. Friel v. Dapper Labs, Inc. et. al., Case No. 1:21-cv-05837-VM (S.D.N.Y). NFTs are digital tokens, frequently associated with digital content, for which ownership of the tokens is recorded on a blockchain. The order was issued in the context of a lawsuit against Dapper Labs, the creator and issuer of NBA Top Shot “Moments.” Moments are digital video clips of NBA game highlights and their associated NFTs minted by Dapper Labs. Moments are offered and sold on Dapper Labs’ proprietary digital platform, validated on Dapper Labs’ private blockchain (the “Flow Blockchain”) and trade on a secondary marketplace controlled by Dapper Labs. The lawsuit claims that Moments are securities and Dapper Labs offered and sold those securities in violation of the registration requirements of the federal securities laws. Dapper Labs filed a motion to dismiss the lawsuit, and the court rejected the motion, concluding that Moments are securities.
Adrian Perry
Clients in a variety of industries engage Adrian Perry in matters relating to the licensing, acquisition, development, sale, use, and commercial exploitation of intellectual property, technology and data. Mr. Perry has particular expertise advising clients with respect to content licensing and distribution issues, including through digital and mobile platforms, and advising clients in sports, entertainment and media with respect to their technology transactions. A musician who has toured internationally, Mr. Perry brings to his legal practice significant experience in the entertainment and media industries. He has licensed his music for film and television, worked as an A&R consultant for a major record label for several years, and has experience in television production, spending two years working for a late night network comedy show. In addition to stand-alone intellectual property and technology transactions, Mr. Perry has advised clients on the intellectual property, privacy and technology aspects of private equity, M&A, joint venture, financing, and other corporate transactions. Mr. Perry is also a certified information privacy professional (CIPP/US).
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