NFT-Based IP Management for Generative AI Content

Abstract

The rapid proliferation of generative AI systems—capable of producing text, images, audio, and 
video—has revolutionized creative industries while simultaneously raising complex intellectual 
property (IP) management challenges. Traditional IP frameworks struggle to accommodate AI
generated works, particularly when ownership, authenticity, and rights enforcement become 
ambiguous. Non-fungible tokens (NFTs), built on blockchain technology, offer a promising 
solution by providing immutable provenance tracking, decentralized rights management, and 
automated royalty distribution. This manuscript explores the design and implementation of an 
NFT-based IP management framework tailored for generative AI content. We propose a 
multi-layered architecture that integrates AI content generation pipelines with NFT minting 
protocols, smart contracts for rights enforcement, and decentralized storage for metadata. A 
mixed-methods study—including system prototyping, performance benchmarking, and 
stakeholder interviews—evaluates the framework’s technical feasibility and user acceptability. 
Results demonstrate that the proposed system achieves secure provenance tracking, reduces 
disputes over ownership, and automates royalty flows with minimal overhead. Interviews with 
artists, developers, and legal experts indicate strong interest in NFT-backed IP management but 
highlight concerns regarding standardization, environmental impact, and regulatory compliance. 
We conclude that NFTs can meaningfully enhance IP governance for AI-generated works, 
provided that technical standards and legal frameworks evolve in concert. Future work should 
focus on cross-platform interoperability, on-chain dispute resolution mechanisms, and 
sustainability improvements.