The NFT gold rush has arrived, and every artist, musician, and creative is frantically doing whatever they can to get in on the action. Digital art is happening, and it’s selling for millions! Creators are finding new ways to engage with their communities, and a whole new creator economy is being born on the blockchain. Behind this exciting digital transformation lies a legal quagmire that risks creators being left open to exploitation and harm.
Consider it the new internet, circa 1995. Wild West, right? Each day required bold, new thinking – nobody knew exactly what to do because no one had ever done it before. Copyright laws were a joke. When Napster attempted to do the same with music (for zero dollars!), the music industry declared war. We shouldn’t allow the same fate to befall the NFT sector. We must learn from the past.
The catch? Just because you own an NFT doesn’t mean you own the copyright to that artwork it represents. Sure, you may own the token art, but the artist is in possession of the art. And that's where the chaos begins. We're talking about a potential digital art Armageddon if we don't act now. Anxiety kicking in? Good. It should be.
So, how do you, the creator, defend your digital darlings in this brave new world? Forget having to wait on rickety and slow-moving legal systems to catch up. That’s the equivalent of waiting for dial-up in an age where fiber-blasted internet is possible. Here are 5 things you can do right now to defend your digital turf:
1. Ironclad Licensing Agreements, Period
Those generic licensing agreement templates you see on OpenSea and Rarible? Garbage. Pure, unadulterated trash. They may as well be written in crayon. You want a proper licensing agreement, written by a lawyer versed in the nuances of NFTs and copyright law, respectively. Don't skimp on this. It's the foundation of your digital fortress. Consider it the digital equivalent to a prenup. Unromantic? Maybe. Necessary? Absolutely.
This contract should clearly outline which rights the purchaser receives and what rights you, the creator, hold onto. Can they make prints? Can they otherwise use the art in commercial developments or projects? Can they create derivatives? Spell. It. All. Out. Leave no room for ambiguity. Do you recall the Miroslav Dimitrov v. Frank Ape LLC lawsuit from a few months ago? A perfect example of how things can go south, quick, if rights are not explicitly laid out.
2. Embed Copyright Notices into Metadata
This is the equivalent of tethering your NFT with a GPS chip. It’s not perfect by any means, but it’s a damn important step. Include a prominent copyright notice embedded directly into the NFT metadata. Add your name, the year you created it, and a link to your licensing terms. This is a very easy and important step to take in order to legally reserve your rights and legally declare to the world that you hold the copyright.
Consider it like signing your digital name on each one you produce. This is a tremendous call to action to the Planet Earth, because you are the artist. You will not cede your rights without a dogged fight.
3. Vigilantly Monitor Marketplaces
Now picture them breaking into your studio, walking off with your original creations, and selling them in a bold black market operation. Like in the first hypothetical, you’d spare no effort in trying to locate them, I bet. The same principle applies to NFTs. You have to be vigilant and check NFT marketplaces for any infringement of your work.
Create Google Alerts for your name and pieces of your work. Google INP to find unauthorized reproductions of your work that are for sale. It's tedious, but it's necessary. Consider it an invitation to be your own digital art sleuth. And when you find infringements, take action. Send cease and desist letters. File DMCA takedown requests. Don't let infringers get away with it.
4. DAOs for Collective Copyright Management
This is where things get really interesting. DAOs provide a radical new tool through which creators can ensure that they hold decision-making authority over their copyrights. Now, imagine an NFT artist rights DAO. Members would be able to pool resources, share legal expertise, and enforce their copyrights collectively.
Imagine creating a digital artist’s guild, secured by the power of the blockchain. This is a pretty radical idea — we know infrastructure is difficult to change — but it’s tremendously exciting. DAOs could revolutionize copyright management and empower creators to take control of their rights in a way that was never before possible. It’s as if you had a team of cyber Avengers defending your virtual valuables.
5. Smart Contracts: Your Automated Enforcer
Smart contracts are self-executing contracts with the terms of the agreement directly written into lines of code. They can streamline and automate royalty payments, enforce licensing provisions, and even stop unauthorized uses of your artwork. This is HUGE.
Now envision a smart contract that regularly and automatically pays you a percentage of each and every resale of your NFT. Or an NFT based smart contract that blocks anyone from using your art in their commercial game without your consent. This is the power of smart contracts. And they can make your licensing agreement an automated enforcer, protecting your rights around the clock. It’s the equivalent of putting a little robot lawyer on retainer to work on your behalf around the clock, fighting for your copyrights. Hermès vs. Rothschild reminded us that not even art is free from trademark overreach. Smart contracts make it easy to stay within those limits by automatically enforcing your licensing terms.
We're at a critical juncture. The NFT space is still very new, and the legal framework is still very much in flux. We can’t wait for the federal government to make these recommendations because that would entail waiting on the federal government. It’s time for the three of us, the producers, the writers, and the actors to take charge of our future. We have to be creative, aggressive and tenacious to defend the rights we have.
Protect yourself from the NFT copyright free-for-all Inflate your NFT price. Take action now. Let us know if you do these five strategies! Soon enough you’ll be well on your way to establishing a long and rewarding career as a digital artist. The future of digital ownership is up to you. Shape it. Defend it. Own it.
