NFT: a private law view through the link with copyright

Abstract

Keywords: NFT, copyright, virtual assets, nonfungible tokens. This article is devoted to the study of non-fungible tokens (NFT) as a new tool, which due to its technical features is unique and unrepeatable and has recently been widely used by art collectors. This article attempts to define the legal understanding of nonfungible tokens from the perspective of civil law, as well as copyrights. In order to achieve this goal, the article identifies the main legally important components of theNFT creation process, which not least determine the place in the system of objects of law. This article defines certain approaches to the understanding of virtual (digital) property in relation to the category of crypto-asset (virtual asset) under Ukrainian law, as a result of which the position about the possibility of attributing NFT for certain conditions is substantiated. The position about the possible obligatory nature ofNFT is substantiated. The possibility of obtaining copyright on the work in connection with which NFT is created, as well as the emergence of resale right is analysed.It is concluded that NFT is not a work, and is not the result of acquiring intellectual property rights, but can only certify property rights. NFT can be secured by a property right of claim, for example concerning the transfer of a property, including the original work of art, the image of which is used for such NFT. NFT is not a separate copyright object, as technically, it is only a metadata associated with a digital file — a digital copy of a copyright or related rights object. The use of the copyrighted work on NFT can be lawfully executed only with the permission of the copyright holder. The use of the NFT copyright may be deemed unlawful under certain conditions, which requires separate permission from the copyright holder.