Is NFT a springtime for IP protection or a capital scam?

Is NFT really as good as it is thought or advertised? Can it really bring a springtime of intellectual property protection in the art field? Or is it just another scam in the capital game? Liu Lei’s legal team has a few thoughts on this.

Is NFT a springtime for IP protection or a capital scam?

Recently, after Christie’s auctioned Beeple’s NFT art “Every Day: The First 5,000 Days” for 450 million yuan and Canadian singer Claire Elais Butcher, who shot 10 digital singles in 20 minutes for a total price of nearly $6 million, NFT has been hotly speculated in China.

Especially in the field of art, NFT has been recognized by many creators as the most powerful weapon for intellectual property protection and an important symbol of the renaissance of art once again. But is NFT really as good as it is thought or advertised? Can it really bring a springtime of intellectual property protection in the art field? Or is it just another scam in the capital game? Liu Lei’s team has a few thoughts on this.

What is NFT?

NFT (Non-Fungible Token) is also known as non-homogeneous token, which is indivisible, irreplaceable and unique. In addition to having the characteristics of traditional digital currency, one of the most important features of NFT is that it is irreplaceable. Simply put, if you think of digital currency as real-life money, then NFT is the unique string of codes on the money. Although all money looks the same, the code is unique, and this uniqueness is the characteristic that distinguishes it from other NFT tokens, such as Bitcoin, which is like a coin, each one is of the same construction. But NFT is different, it is like a paper currency, it looks the same but has a unique code as an identity. From this perspective, NFTs do have the ability to become protected as intellectual property, i.e., they can generate a unique identifier and thus have exclusivity.

What is intellectual property?

So, after understanding what NFT is, let’s look at what intellectual property is. First of all, intellectual property has the characteristics of exclusivity, which is a right belonging to the original creator of the work, absolute, i.e., the right to have direct dominion over the object, which can be used, earned, disposed of, and dominated by other species (but no issue of possession occurs); exclusive; and transferable (including inheritance), etc.

However, after the rapid development of the Internet, because of the anonymity of the Internet and the rapid dissemination of information, the protection of intellectual property rights has become mired in a quagmire, especially in the field of artistic creation, such as online novels, video and audio, etc., which have become a haven for pirates, and various kinds of infringements have been prohibited, which has greatly damaged the enthusiasm of literary and artistic creators and caused a great deal of damage to the copyright owners. This has greatly undermined the enthusiasm of literary creators and caused great economic losses to copyright holders. Although the judicial environment has improved, citizens have become more aware of the law, and efforts to combat piracy have increased, the unique nature of artistic creation has made it impossible to effectively stop infringement.

How does NFT protect intellectual property rights?

In such a context, the emergence of NFT seems to be a guiding light, providing a new alternative for artistic creators to protect their intellectual property. how does NFT protect intellectual property? The framework agreement of NFT can be set up in such a way that an artwork is generated into NFT tokens, and then every time the tokens flow, the person who originally created the tokens can enjoy a fixed percentage of the commission.

Let’s say a literary creator creates a pair of electronic paintings, and then uses the electronic paintings as the anchor object to generate an NFT token, and then sets that the literary creator gets 20% of the commission for every flow of the token, so that a collector buys the NFT token for 100 USDT, and then sells it to a third person for 1000 USDT, then the literary creator can receive a fixed percentage of the commission. The creator of the art and literature can receive a commission of 200 USDT, so that the creator can get a percentage of all secondary sales.

In the traditional art world, artists usually do not get a share of secondary sales. The NFT token holder can show the public that I am the absolute genuine one, which also gives art investors the satisfaction of collecting.

The truth behind the NFT boom

Analyzed from the above perspective, it does feel that the emergence of NFT can bring great benefits to the art original. However, if we analyze it in depth, we will find that it is a mess.

First, we see that behind the current prosperity of the NFT is the promotion of a very small number of people with fame and social status, their artistic creations have a certain value, and then through the operation of capital, so as to auction out sky-high prices. However, if NFT is really extended to the general art creation group, it does not necessarily bring huge value to it. Because the essence of NFT is still a digital currency, the basis of its value is still the need for consensus, and the formation of this consensus is uncertain, and if everyone is the creator, then how can its value be reflected?

Second, the protection of intellectual property rights does not depend on technology alone, but more on the law. Although the artistic creation formed through NFT has a unique identity, it is only a unique identity, and it can be widely copied and pasted. Copy and paste is also the nature of the Internet. In such a case, although I know the genuine holder, there will still be people who do not mind spending less to hold a pirated copy, because the artwork may just be no different except for the difference in identity.

Third, the majority of art creation is still physical creation, and only a small percentage is virtual creation via computer. It still seems premature to us to believe that relying on NFT alone will lead to a springtime for the art original. Not to mention the protection of intellectual property through NFT in disguise. The protection of intellectual property is a long way to go, and it will not be achieved overnight.

The cryptocurrency market is risky, investment needs to be cautious

Finally, in the face of the raging cryptocurrency bull market, both insiders and outsiders need to treat it rationally and not be blinded by desire. Behind the crazy profit-seeking is always the drive of capital. Everyone’s cognition is limited, and it is the norm to not earn wealth outside of cognition, but to earn it instead is perverted. So, in the end, NFT is the spring of intellectual property protection, or another scam of capital, want to know the answer? Then let the bullets fly a little longer.

Posted by:CoinYuppie,Reprinted with attribution to:
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