Story: Learn Non-Fungible Tokens (NFTs) from scratch ; 11-22-2021;
What is Non-Fungible Token (NFT), its License & Copyright.
What NFT stands for?
• NFT stands for Non Fungible Tokens.
What does it mean by Non Fungible Token?
A Non-Fungible Token (NFT) is a unique and non-interchangeable unit of data stored on a digital ledger (blockchain), which can be sold and traded, with license to use them in commercial or non-commercial means.
• Allows the original creator to keep the digital or physical work intact with non-interchangeable and unique in itself “token” attached to it.
• Artists can secure their digital work say art, music, films etc. and even real life physical objects/things can be secured with a digital unique identity.
How copyright & the license of NFTs work?:
Non-Fungible Tokens assure the original creator/artist to hold the absolute right on the property, which means the new buyer or the person who gets the license to the asset does not hold its copyrights and stay bound with the terms of license or trade agreements.
• The copyright to the underlying work could be transferred/sold to a buyer if the current copyright holder wants to.
The original digital assets can easily be identified and tracked with a NFT attached to it, the token points to its registered address on the blockchain ledger.
• Ownership of an NFT does not inherently grant copyright to whatever digital asset the token represents.
While someone may sell an NFT representing their work, the buyer will not necessarily receive copyright privileges when ownership of the NFT changes and so the original owner is allowed to create more NFTs of the same work.
• In that sense, an NFT is merely a proof of ownership that is separate from a copyright.
According to legal scholar Rebecca Tushnet, "In one sense, the purchaser acquires whatever the art world thinks they have acquired. They definitely do not own the copyright to the underlying work unless it is explicitly transferred."
• In practice, NFT purchasers do not generally acquire the copyright of the underlying artwork.
On March 22, 2021, Jack Dorsey, founder of Twitter and Square, sold an NFT representing his first tweet for over $2.5 million.