NFT technology is the basic element behind the commercialization of digital creations, whether we are talking about video games, digital art or even music files. Non-fungible tokens (NFTs) are based on a data unit in a blockchain, and each data unit gives you access to a unique digital item: a piece of music, a vector, a virtual drawing, based on a token. And as any creation of the human mind must have a creator, but also related rights for that creation, the question arises to whom and under what conditions the intellectual property rights for this NFT are granted? Here is our answer:

How upward this trend can be

NFTs first appeared in 2015 and immediately attracted the attention of cryptocurrency investors who started investing huge amounts of money in the area. Why would you buy such an NFT? The main motivating factor behind the purchase is to provide support for the artist. You can also use the art as you see fit. If it’s a photo, you can consider yourself its owner and display it anywhere you like. Finally, you can invest in this type of art with the expectation that its value will increase over time.

This trend was started by a gallery dedicated to NFTs in New York, and a similar exhibition will take place in Shanghai. What makes this technology innovative is the fact that the work of art itself is not a physical one, the owner enjoying it only by its existence in a blockchain.

The value of such a digital asset can reach up to $69.3 million, as is the case of the most famous NFT ever sold. It is a collage of 5000 photos made by digital artist Mike Winkelmann, entitled “Everydays: the First 5000 Days”. Certainly, this digital purchase marks only the beginning in terms of the prices that these NFTs can reach, considering the fact that they can be purchased using Bitcoin. This industry will certainly grow and, if we analyse the financial aspects, the money involved will certainly be commensurate.

What it means to own a virtual work of art

The most interesting aspect, but also the most important, is the fact that an NFT has a unique character, rendering it impossible to replicate. This technology allows artists to sell their artwork and, if the artwork is resold, to collect a percentage on each subsequent transaction.

Aspects of intellectual property are assured because the use of content and its distribution are also monitored. Obviously, anyone with internet access can copy an NFT, but its value lies completely in the property character that the buyer obtains from the purchase.

To make clear who owns this NFT, it’s important to understand that after the purchase, you have the right to claim ownership of the NFT, itself, and to defend the NFT from false claims of ownership. Speaking strictly from an IP perspective, it can be said that NFTs are intangible personal property, but to which a certain value is attributed. Like any other property, NFTs can be purchased, sold, donated, even used as collateral, and they can certainly be collected, which gives them a value that increases over time, depending on the originality of the work itself.

A controversial aspect of these virtual works of art is the classic copyright issue. To give the short answer, you must know that the author will always remain the author of the work itself. But if we change perspectives, the situation is quite different. So, if several people contribute to a single work, the work is created by an employee, or derives from other existing works, simply signing assignment agreements will clarify any problem. The laws that apply to traditional IP assets can also apply to these new types of digital assets.

Certainly, this topic raises a number of questions, but the answers depend very much on the country in which the case takes place, the parties involved, the source of inspiration for the digital work. But the most telling question right now is: how can the termination of these rights be determined given that the world of NFTs is an ageless one?

NFT technology is the basic element behind the commercialization of digital creations, whether we are talking about video games, digital art or even music files. Non-fungible tokens (NFTs) are based on a data unit in a blockchain, and each data unit gives you access to a unique digital item: a piece of music, a vector, a virtual drawing, based on a token. And as any creation of the human mind must have a creator, but also related rights for that creation, the question arises to whom and under what conditions the intellectual property rights for this NFT are granted? Here is our answer:

How upward this trend can be

NFTs first appeared in 2015 and immediately attracted the attention of cryptocurrency investors who started investing huge amounts of money in the area. Why would you buy such an NFT? The main motivating factor behind the purchase is to provide support for the artist. You can also use the art as you see fit. If it’s a photo, you can consider yourself its owner and display it anywhere you like. Finally, you can invest in this type of art with the expectation that its value will increase over time.

This trend was started by a gallery dedicated to NFTs in New York, and a similar exhibition will take place in Shanghai. What makes this technology innovative is the fact that the work of art itself is not a physical one, the owner enjoying it only by its existence in a blockchain.

The value of such a digital asset can reach up to $69.3 million, as is the case of the most famous NFT ever sold. It is a collage of 5000 photos made by digital artist Mike Winkelmann, entitled “Everydays: the First 5000 Days”. Certainly, this digital purchase marks only the beginning in terms of the prices that these NFTs can reach, considering the fact that they can be purchased using Bitcoin. This industry will certainly grow and, if we analyse the financial aspects, the money involved will certainly be commensurate.

What it means to own a virtual work of art

The most interesting aspect, but also the most important, is the fact that an NFT has a unique character, rendering it impossible to replicate. This technology allows artists to sell their artwork and, if the artwork is resold, to collect a percentage on each subsequent transaction.

Aspects of intellectual property are assured because the use of content and its distribution are also monitored. Obviously, anyone with internet access can copy an NFT, but its value lies completely in the property character that the buyer obtains from the purchase.

To make clear who owns this NFT, it’s important to understand that after the purchase, you have the right to claim ownership of the NFT, itself, and to defend the NFT from false claims of ownership. Speaking strictly from an IP perspective, it can be said that NFTs are intangible personal property, but to which a certain value is attributed. Like any other property, NFTs can be purchased, sold, donated, even used as collateral, and they can certainly be collected, which gives them a value that increases over time, depending on the originality of the work itself.

A controversial aspect of these virtual works of art is the classic copyright issue. To give the short answer, you must know that the author will always remain the author of the work itself. But if we change perspectives, the situation is quite different. So, if several people contribute to a single work, the work is created by an employee, or derives from other existing works, simply signing assignment agreements will clarify any problem. The laws that apply to traditional IP assets can also apply to these new types of digital assets.

Certainly, this topic raises a number of questions, but the answers depend very much on the country in which the case takes place, the parties involved, the source of inspiration for the digital work. But the most telling question right now is: how can the termination of these rights be determined given that the world of NFTs is an ageless one?