NFTs vs Copyright: Is That NFT Really Yours? - YouTube

NFTs have been flying around more  than fireflies on a hot summer night.

Since people have been paying  insane prices for Cryptopunks,  

NBA highlights, and, in one case,  69 million dollars for a JPEG,  

it’s important to understand what you  are actually getting when you buy an NFT.

We’re going to address considerations  in buying, managing, and creating NFTs.

Now, I am not a lawyer.

But, a lawyer DID help write this.

Regardless, nothing in this video is  legal advice, it’s just fun for learning.

Deal?

Before we get into the nitty-gritty  of NFTs, make sure you have a good  

working knowledge of what they actually are first.

You can check that off your to-do list by  watching our short ‘What is an NFT?’ video  

that’ll fill you in on all the basics.

The basic premise is that NFT ownership does  not necessarily equal copyright ownership.

In other words, you can own the object,  

but you may not own the copyright  associated with said object.

Copyright is not simply one right but a whole  bundle of rights, and many of them remain  

firmly within the grasp of the  original creator of the work.

When you own a copyright, you  typically own six exclusive rights:

the right to reproduce and make  copies of an original work,  

the right to prepare derivative works based  on the original work, the right to distribute  

copies to the public by sale or another  form of transfer such as rental or lending,  

the right to perform the work in public,  the right to display the work in public,  

and finally, the right to perform sound recordings  publicly through digital audio transmission.

So let’s look at an example, shall we?

Let’s say you visit an art gallery and  decide to purchase a painting for your home.

You now own that painting, and you  hang it up in your living room.

You can have it on display, but that  doesn’t mean you can reproduce the painting,  

make derivative works from it  or distribute copies of it.

You own the physical painting, but  the underlying copyright interests  

are still in the hands of the artwork’s creator.

In the Netflix documentary ‘The Last Blockbuster,’  

a court case in which film studios moved  against video rental outlets is discussed.

It just so happens these video outlets  were profiting off renting copies of  

movies they purchased from the  film studios for their stores.

Keep in mind that this was the early  days of the video rental industry  

when 1 VHS tape cost nearly 100 dollars  and that's not even counting for inflation.

The case made it all the way to the Supreme Court,  

which actually ended up ruling in  favor of the video rental stores.

Now, this brings us to our next point  concerning the first-sale doctrine,  

one of the limitations and  exceptions to copyright.

It basically says this:

An individual who knowingly purchases a copy  of a copyrighted work from the copyright  

holder receives the right to sell, display  or otherwise dispose of that particular copy,  

notwithstanding the interests  of the copyright owner.

It’s all right there, codified in the Copyright  Act of 1976 at 17 U.S.C. squiggly squiggly 109.

So what rights do you get when you buy an NFT?

The truth is, less than you might think!

More often than not, you don’t automatically  get full transfer of copyright.

However, you do own the underlying NFT.

You have the authority to trade it,  sell it on a marketplace, give it away,  

or even burn it if you want, according to  that squiggly squiggly thing from earlier.

When you buy an NBA Top Shot moment,  you are granted a license to use the  

Top Shot moment for personal, non-commercial use.

The license also gives you the ability to display  

and sell your moment on marketplaces that  perform cryptographic checks on NFTs.

You can even display your moments on  third-party websites and applications,  

depending on a few terms and conditions.

When you compare a physical painting with an NFT,  

the rights you obtain through  purchase are identical.

The operative term here is ‘non-commercial.’

That means you are allowed to display  your artwork, and you can sell it on  

a marketplace and so on, but once your  use crosses into commercial territory,  

you are more than likely violating copyright.

So if these rights are so valuable,  how exactly do you get them?

This can only be achieved at the creator-level.

The creator has to expressly agree in  writing to convey these rights to you.

Aside from that, you can  expect that any NFT you buy  

will only afford you certain  rights unless otherwise stated.

There are cases where the original copyright  holder grants full rights to the buyer of an NFT.

This can be checked and verified in  the description of the NFT listing.

All I’m really saying is that you shouldn’t  automatically assume this is always the case.

OK, now let’s tie this all together:

Is that NFT really yours?

Yes!

Does owning it grant you every right?

Usually, no.

Does this make NFTs less valuable?

Absolutely not!

In the past, art and collectibles have been  bought and sold for millions of dollars,  

be they NFTs or otherwise.

Now, just because I don’t have the  copyright to a holographic Charizard card  

doesn’t mean I can’t sell it  to Logan Paul for 150 grand.

Now, what about NFT creators themselves?

What if you create an NFT using  copyrighted or syndicated material  

from the Star Wars Universe or the  Marvel Universe without permission?

Can you get yourself into hot water?

Well, in an article appearing on CBR.com,  

both Marvel and DC have started cracking  down on NFTs featuring their characters.

However, this is a contentious issue,  since comic book artists argue that they  

are being barred from making money off their  original works in a modern digital world.

So, if you are not the original creator or  copyright holder of a piece of intellectual  

property, you could very well find yourself  embroiled in a lengthy legal battle.

With the sheer quantity of intellectual  property disputes in progress  

and the mounting issues concerning  copyright, this is likely to remain  

“a thorny copyright issue that could grow  larger,” as this article from Decrypt.com puts it.

In short?

Use existing IP without  permission at your own risk!

Now, maybe you love NFTs but don’t really  have the skill or patience to create them.

This is where AnyTask.com comes in really handy!

AnyTask.com is a global freelance  marketplace where you can hire  

professionals a-la-carte to assist  you with anything you might need.

So, if you want an NFT artist to  create a custom piece of art for you,  

then AnyTask.com is the  perfect place to find them!

Unlike other freelance platforms,  AnyTask.com accepts payment in crypto.

By making use of Electroneum’s services, sellers  don’t need a bank account to receive payments,  

and what’s more, they don’t have  to pay seller’s fees either.

Do you have a creative idea for an NFT?

Then head over to AnyTask.com and get crackin, yo!

We have more content about NFTs that  you can watch anytime, anywhere.

Our video ‘The Blockchains of Ready Player One’  

discusses NFTs that can be used in  Blockchain-powered games and VR experiences.

It’s a really great video that  thousands of people have enjoyed so far.

You can also check out our introductory  video to NFT Showroom, a platform for  

artists and art collectors that’s fully  integrated with the Hive Blockchain.

For more NFT Marketplaces  to list and discover NFTs,  

check out our video ‘5 NFT  Marketplaces You’ll Love.’

If you want to get into NFTs, hopefully  this MarketSquare special filled you in  

on what you’re planning to buy into.

However, this special is not financial advice,  

and buying and trading NFTs is  a personal financial decision.

You’ll need to make up your own mind or consult a  

trusted advisor before you  decide to make a purchase.

Follow us and subscribe, join our Discord,  and get your free account at MarketSquare.io.

See you next time!