Our unique Royal Monkies NFT collection.

Copyright refers to the right to own and control the duplication and use of an original creative work. Non-fungible tokens (“NFTs”) have introduced complexities into the landscape of intellectual property rights, particularly within copyright law.

Artists who mint NFTs often hold different understandings and expectations regarding copyrights compared to collectors and investors who purchase them. Under standard copyright law, ownership of creative works does not automatically transfer with sale; thus, unless an NFT creator proactively transfers or licenses rights to the purchaser, they will retain no copyright privileges associated with the content linked to their NFT.

This page aims to educate NFT creators, buyers, and their legal advisors about whether any copyright entitlements related to tokenized works should be transferred or licensed to purchasers while providing clarity on copyright transfer and licensing issues in the realm of NFTs and blockchain technologies.

1. NFTs are not the artwork itself; rather, they serve as a separate entity that records the copyright associated with the artwork. Before delving into the transfer or licensing of copyright rights to NFT purchasers, it’s essential to grasp what non-fungible tokens (NFTs) truly represent and what they do not: Firstly, NFTs are not artworks. Instead, an NFT signifies creation and ownership of an asset that may include an artwork. Functionally, NFTs operate through cryptography defined by a “smart contract.”
2. A smart contract is essentially a brief segment of code that constitutes a straightforward computer program directing how an NFT operates. Smart contracts harness blockchain technology to verify and document both digital assets and tangible three-dimensional items’ existence and ownership. When someone purchases an NFT, they acquire control over the smart contract governing its functions.
3. Blockchain: This smart contract establishes a registry entry on the blockchain recognized within both the NFT industry and crypto community as proof of ownership related to whatever asset is linked to the NFT—be it art, real estate, or another type of asset. However, owning an NFT does not automatically grant you control over or ownership of the copyright for any artwork associated with it.
4. What Do You Purchase When You Buy an NFT Acquiring an NFT tied to tokenized digital or physical art doesn’t equate to gaining exclusive possession of that artwork—as if you simply walked into an NFT gallery, bought a piece off the wall, then took it home. Instead, when purchasing this type of asset via capitalizing on its accompanying smart contract stored on blockchain technology embeds your status as officially registered owner in relation to both this particular tokenized item and its artistic link.

Furthermore, you gain access through a cryptographic tool known as a private key which enables your command over said smart contract; consequently upon selling this very same token—transfers from you seamlessly pass via private key transition towards each newcomer buyer instead!

A significant reason behind buying NFTs often revolves around possessing awareness toward acquiring underlying assets highlighted in their listings so discerning buyers must attentively analyze precisely what’s included under these offered goods!

For example should details note physical works specifically—they clarify firmly whether such tangible pieces themselves accompany sales terms- otherwise indicate alternate offerings surrounding culture-related support instead!