Nowadays, not only is the environmental impact of NFTs relevant, but also the online sales method stands out and is booming. This technology is growing by leaps and bounds and many people are still unaware of the importance of intellectual property within the framework of the Law. Doubts about the copyright of such systems are more common than you can imagine.
That is why, in this article, we will tell you everything you need to know about the royalties and rights that have to do with NFTs within the Market. Only then, you will be able to use the non-fungible token without legal problems that could affect your personal life.
Index( )
- Who is the copyright owner of an NFT?
- How to be the owner of the intellectual property rights of an NFT?
- How to ensure that the copyright of a Non-Fungible Token belongs to me?
- What rights do you get when you buy or sell an NFT?
- Rights of the seller of a Non-Fungible Token
- Benefits of buying an NFT
- How are copyright rules handled in NFTs?
- Limits created by the author of the NFT
- Possible additional agreement when buying a Non-Fungible Token
- In what cases are industrial property rights infringed when using an NFT?
Who is the copyright owner of an NFT?
As you well know, NFTs and the blockchain are related through their technology. Where a cryptocurrency acquires a leading role . That’s why it’s normal to see people buying digital artwork, memes, and even music. But, what happens when you try to receive this type of assets that operate online? Who do they belong to?
Well, we tell you that when you sell the NFT your domain becomes the one who is buying . However, that does not mean that the intellectual property belongs to the person. Since, it will remain an exclusive part of the individual who created it. For example, if you buy a CD, you are its owner more, not who has the copyright of the music.
How to be the owner of the intellectual property rights of an NFT?
If you want to take credit for being the maker of the intellectual property rights of NFTs, you will have to develop them on your own . Therefore, it is important that you include characteristics that guarantee its authenticity such as the image, rarity, features and the address of the contract.
At the same time, you cannot forget to establish the royalties that consist of the benefit that you will obtain in each opportunity that your product is commercialized.
Thanks to these aspects, you will be able to use a digital certificate that verifies that only you are the author and owner of the copyright of the NFT as it is an intellectual property. In the event that transactions are made, a record will remain in the blockchain upon verifying that you received the corresponding credits. Regardless of whether your NFT represents Crypto Art or video games.
How to ensure that the copyright of a Non-Fungible Token belongs to me?
Such rights are determined by what you as the creator stipulate . For example, it is possible to add license agreements that tell people what they can do with the NFT they just bought and what they can’t. This way, if they decide to break the rules by exploiting your creation, they will get into legal trouble.
For all these reasons, it is essential that you take into account such considerations regarding the use of your NFT from the beginning. Remember that the digital certificate is very valuable when it comes to demonstrating the authenticity of your product within the market.
What rights do you get when you buy or sell an NFT?
As is well known, the copyright of an NFT does not transfer immediately, as soon as sales arise . There are considerations that are related to the safety of the owners. Just as it happens when backing up the information on your PC before formatting it, in this scenario it is just as important to keep a record and permission from the original author of the work to avoid mishaps.
Rights of the seller of a Non-Fungible Token
If you’re the one putting an NFT out there for others to buy, you need to consider permissions that only belong to you . In other words, no person will be able to market your product without your prior authorization. If this is the case, we recommend you take the appropriate legal action against whoever usurped the content of your creation.
However, what it is possible to do is give resale rights to third parties who wish to resell your digital works in auctions or online events. Since, you will take the percentage of sales and this is an aspect that benefits us in the long term.
Keep in mind that the Law will always protect content creators and it is for this reason that you will be favored if you know your rights. If for some reason they are violated, you can take action on the matter and act if plagiarism occurs. That is why it is so important to register your product from the beginning before it circulates on the web.
Benefits of buying an NFT
In the case of being the one who acquires a non-fungible token, you should know that your rights depend above all on the original author. As for the advantages you will get, it is worth having the digital property of the NFTs in case you decide to sell them to collectors or other people. Despite this, you cannot make copies or exploit it within the Marketplace because you would be breaking the Law.
Unless, the creator grants you a special permission where you have the rights of distribution or transmission of the NFT. For this, it is important to draw up a license agreement that you show without major inconveniences and that demonstrates what you can do with the token.
It should be noted that the versions of the NFTs are unique and are due to the network where they were created. In the event that Ethereum is the hosting site, the value of the assets will depend exclusively on its operation. Being possible that it disappears from the network and the token is no longer accessible to users.
How are copyright rules handled in NFTs?
As you might think, by purchasing an NFT the authorship will remain the same as the individual who created it in the first place. Reason for which, there are certain copyright regulations that you must follow if you do not want to get involved in legal mishaps . Next, we indicate the most outstanding ones so that you take them into consideration when operating under this modality within the market.
Limits created by the author of the NFT
If you want to prevent situations of plagiarism or illegal reproduction of NFTs , it is important that the author establishes various rules. One of them consists of appealing for the standard model of ERC-721 tokens. Only then, he will be protecting the rights of his work. Likewise, you can determine the sale price of your token and the number available to the public.
On the other hand, it is essential to include true information regarding the works . So that other people know that the blockchain is backed by its original author. However, this does not mean that a third party cannot view or download it as long as copyright is not infringed. Keep in mind that the hosting of your data must be protected.
Possible additional agreement when buying a Non-Fungible Token
When you acquire an NFT, you are allowed to make intelligent consensus that not only benefits the author of the work but also you as a buyer. In general, digital smart contracts are based on automatically paying the creator when reselling the tokens. All this, with the help of codes that remain in the block chain and that cannot be replaced or modified.
With the additional agreements, legal conflicts regarding the terms and conditions of the digital market are prevented. It happens equally when you acquire at least one royalty of a product. And it is that not only the author will be able to obtain a percentage for the sales, but you will also be able to achieve it. That is why many investors are betting on this type of revolutionary project.
Without neglecting, the versatility when it comes to marketing works of art whose format is characterized by being NFT. Where, you can control the rewards by making transactions that take very little effort and only require a stable Internet connection.
In what cases are industrial property rights infringed when using an NFT?
In the event that you are managing your assets through the commercialization of NFTs , you must have certain guidelines in mind so as not to present problems before the Law. One of the infractions would be to violate the terms of the license agreed by the author of the NFTs. You may do this if you copy the digital image or sell a copyrighted product.
If you upload a work that is not yours to the block chain or communicate it to third parties, you will be infringing the intellectual property of NFTs . For this reason, the rule is that only the creators of the non-fungible token can give their permission for you to do so. In addition, digital platforms and wallets must proceed actively in order to avoid such situations.
So, before you act, it is important that you know how technology works and what governs digital norms . So, analyze in detail everything that has to do with the legal framework and always verify that the seller is the true creator of the NFT. Don’t be fooled by scammers who get third-party permissions and are hosted on unreliable servers.
Check the conditions of the platforms that are characterized by their services in the blockchain and check the reputation of the site before working with digital assets.