If you’ve had anything to do with digital art, digital assets, or both in recent months, it’s almost impossible to avoid a ton of news about how irreplaceable icons or NFTs are changing the game in the creative industries. From Kings of Leon releasing their new album as NFT to digital artist Beeple finishing Christies with an astonishing price tag for a piece of his work, the trend has grown at a staggering pace.

Many believe that NFT is more than just a great new medium for works of art, but it is able to generate new skills and redefine the relationship between creators, audiences, traditional leaders and the music and art industry.

Better management of intellectual property rights and easier distribution of royalties are some of the more controversial issues of use. Established copyright authorities such as the Italian Association of Writers and Publishers join the movement and move towards IP blockchain registries, while musicians offer shares of their business for sale to investors to take advantage of subsequent commercial recordings. use. How useful are these solutions, and what obstacles can the heroes face?

In search of originality
One of the biggest challenges facing digital content creators is making it easy to create the perfect digital copy of their work. Since a digital image or sound clip can be instantly copied and distributed infinitely many times, it is difficult for content creators to keep track of how and by whom their work is used and thus benefit from it.

The core value proposition for NFT is that by creating a unique blockchain-based ledger for each creative work unit, they can not only encrypt a sense of authenticity and scarcity, but they can also give artists the ability to establish and enforce copyright transfer rules. …, use and revenue generation. JJ van Royen, co-founder of Custos Media Technologies, a blockchain content security firm, commented to Cointelegraph:

First, NFT allows us to track rights transfers securely – just as Bitcoin payments reliably track money transfers. Second, NFTs can provide long-term support to creators. In NFT, for example, you can specify that content creators should be rewarded each time one of the assets is resold at a higher price. ”
In particular, one of the notable improvements in the traditional world of intellectual property protection that NFT offers is automatic enforcement. Daniel Dabuzzi, CEO of technology company Technicorum Holdings, told Cointelegraph that by leveraging the underlying smart contracts, NFTs can enable artists to distribute royalties and protect intellectual property without the need to go to court and enforce.

However, the relationship between smart contract technology and the existing legal framework can in many cases not be so simple.

What do NFT owners really have?
Owning an NFT in most cases does not give the right to own the underlying job by default. Alternatively, it can be seen as a digital certificate confirming that they have a unique and collectible copy of it. Burr Ekstut, Special Adviser at the law firm Covington & Burling LLP, explained to Cointelegraph:

NFT differs from digital content in that it can only be one owner of a particular NFT at a time. However, NFTs usually do not contain digital content and may not be related to DRM technology, which prevents digital content copying. The relationship between NFT and content can only be a conceptual concept, but it can still be of value as long as the NFT elements are insufficient.

Source: CoinTelegraph