Abstract The market for the sale of art-NFTs is a reality, but due to their diffuse legal nature, there are many doubts about this business model from a legal perspective. This raises uncertainties as to whether it is possible to recognise a property right over the NFT as a digital asset and an online distribution rights model, where the principle of exhaustion is recognised from the intellectual property law perspective.
M. Vinnik, Максим Полторацький, Olga Konnova, Наталія Олександрівна Кушнір · 5 authors
The widespread implementation of blockchain technologies fundamentally changes many processes in the socio-economic and cultural life of modern society. The high level of investment in the implementation of this technology, especially in the field of digital art, confirms the perspective and high interest of business in the further development of the blockchain. At the same time, the appearance of a large number of digital works of art and the possibility of electronic access to the latest developments actualize the issue of copyright protection and quick obtaining of intellectual property (IP) documentation. This issue is also important for teachers and educational institutions because it allows them to protect the results of their work, promote innovation and knowledge in the field. The use of non-fungible tokens is one of the most promising directions for the protection of intellectual property. The article analyzes the experience of implementing blockchain technologies in the process of obtaining intellectual property documents and patents, and copyright protection in general, and also considers systems and platforms designed for copyright protection. We present the model of authorship registration and obtaining IP documents based on blockchain technology. The user’s authorship will be represented in the form of a non-fungible token (NFT), which contains all information about this intellectual property and confirms the user's right to it. Each NFT is unique, allowing creators to present their creations in digital form with guaranteed proof of authorship. In addition, the article presents a fragment of the requirements for the tokenomics model and a diagram of the interaction of agents in the context of the functioning of tokenomics and the model as a whole. During the research, an NFT model was developed. It represents an intellectual property document certifying the authors’ rights to intellectual property objects. We implemented a smart contract that manages the creation and transfer of NFTs using the Cadence language on the Flow blockchain. In addition, the key functional requirements for the system were implemented, among them: registration of authors and experts (reviewers), adding keywords for the selection of experts (reviewers), searching for relevant experts by keywords, implementation of payment functions for reviewers for work performed.
This chapter critically examines the phenomenon of non-fungible tokens (NFTs), discussing their rise in the digital era and the issues surrounding them. NFTs, unique digital assets verified using blockchain technology, have gained prominence in art, music, gaming, and real estate. While providing new avenues for verifying authenticity and ownership, NFTs have also been associated with scams, environmental concerns, and speculative bubbles. The chapter explores various NFT scams, their impact on the market, and the persistence of wealth disparity in NFT holdings. It also discusses the profitability trends of NFTs, including the resilience of certain projects despite market downturns. The chapter highlights the significant growth of the NFT market, its correlation with cryptocurrency markets, and the performance of different platforms in NFT transactions. Additionally, it presents a micro-trend analysis revealing inequalities in market distribution and the challenges of liquidity in the NFT space. The chapter concludes by reflecting on the broader implications of NFTs in the digital economy, their role in market dynamics, and the need for caution and critical engagement with this emerging technology.
This study examines the challenges related to the music industry's digital transformation and potential role of blockchain from the perspective of collective management organizations (CMOs). Building on desk research and primary data from semi-structured surveys conducted with C-level executives and managers, this empirical analysis identifies major projects, their state of development, and prospects for digital transformation based on blockchain in the music industry. The findings reveal that there are a limited number of blockchain projects led by and/or with the relevant participation of CMOs. However, most are just research projects, proofs of concept, or pilots, showing that blockchain is currently in an experimental phase of development on the periphery of the music industry's digital transformation. This is not very different from analysts' understanding of the current situation and perspectives on the mass adoption of blockchain in other industries. In summary, blockchain is neither at the core of the music industry's digital transformation nor a priority for CMOs leading this process from the perspective of intellectual property rights management. The limited quality of music metadata, sparsity of sound data sources, and absence of a common data governance framework among different stakeholders within the industry are the main impediments to transforming blockchain into a global solution with transformative potential. Overall, the results provide a snapshot of the current status and possible future trajectories of blockchain adoption as a paradigm for intellectual property rights exchange within the music industry.
This chapter investigates the evolving landscape of blockchain technology and non-fungible tokens (NFTs) in the context of digital content distribution. It questions the effectiveness of these technologies in creating decentralized platforms and the true uniqueness of the content they distribute so far. The discussion begins with an analysis of complex socioeconomic systems and inequality, drawing on historical observations to contextualize the current economic framework within which blockchain operates. The chapter then delves into the genesis and underlying philosophy of blockchain technology, focusing on its response to increasing centralization in a digitized world and the foundational principles of decentralization, anonymity, and absence of a priori trust. Further, the chapter addresses the trends toward centralization in blockchain systems, noting the discrepancy between the initial decentralization ethos and the emerging dominance of central players. A significant focus is placed on NFTs, particularly in terms of art uniqueness, fungibility, incentivization, and data provenance. It examines the necessity of linking off-chain data to on-chain assets and draws parallels with the Xanadu project to envisage future models for digital art and asset management. The chapter concludes by reassessing the role and potential of blockchain systems. It reflects on the limited innovation and disruption achieved by implemented blockchains and applications in terms of socioeconomic incentives, and suggests a future direction for these technologies, emphasizing the need for continuous learning, research, and practical experimentation to fully realize their transformative potential.
This paper provides a critical examination of Music Non-Fungible Tokens (NFTs) within the context of the digital transformation of the music industry, focusing on the implications for equitable artist compensation. As digitalization reshapes consumption and revenue models, the advent of Music NFTs, predicated on blockchain technology, presents a nuanced paradigm for artist-fan interactions and compensation structures. Through an interdisciplinary methodology that integrates literature review and expert interviews, this study scrutinizes the operational mechanisms of Music NFTs, their potential to reconfigure the economics of music production, and the attendant legal and technical challenges. While Music NFTs proffer an innovative approach to direct artist revenue and engagement, this inquiry reveals a complex landscape fraught with legal ambiguities, technological hurdles, and market volatility. The findings underscore the dialectical relationship between the potential benefits of Music NFTs for artists and the prevailing challenges that circumscribe their efficacy.
Digital collectibles are a new concept in the cultural industry that is based on blockchain and non-fungible token (NFT) technology. The current state of digital collectibles in China shows a trend of rapid growth from nothing to something, from sporadic to messy, with imperfect related laws, regulations, and supporting systems. The copyright ownership risks and platform transaction risks of digital collectibles in China are prominent. This article focuses on the production and transaction processes of digital collectibles, aiming to clarify the attributes and boundaries of copyright ownership of digital collectibles in China, define platform responsibilities, reduce transaction risks, and protect the legitimate rights and interests of consumers.
Non-Fungible Tokens (NFTs) have introduced novel mechanisms to authenticate and trade digital art, fostering a vibrantand dynamic marketplace by leveraging blockchaintechnology. However, the rise of NFTs has also prompted a host of legaland ethical considerations that necessitate careful scrutiny. This research paper provides an in-depth exploration of Non-Fungible Tokens (NFTs) as an emerging form of intellectual property that is transforming the digital art landscape.The paperbegins by elucidating the principles behind NFTs and their significance to digital art, elucidating how these tokens redefinetraditional notions of ownership. It scrutinizes the role of blockchain technology in protecting digital art and the distinctiveadvantages it provides, such as transparency and immutability.The paper then delves into the critical legal implications,particularly focusing on copyright issues and the evolving regulatory environment, highlighting the dichotomy between theownership of NFTs and the copyright of the underlying digital artwork. It conducts a comparative legislative analysis ofIndia, the USA, and the UK, indicating the urgent need for regulatory frameworks that can navigate the global anddecentralized nature of NFT transactions.The paper engages with ethical concerns, including environmental impact, economic inequality, and artist attribution,underscoring the necessity for balancing innovation with responsibility.Finally, it provides recommendations for regulatoryapproaches and discusses future implications, emphasizing the need for clarity, balance, and international cooperation inlegislation, alongside the importance of continuous dialogue and research. This paper lays the groundwork for furtherinvestigations into the fast-evolving world of NFTs and their wider societal impacts.
As one of the many applications of the blockchain, non-fungible tokens (NFTs) are artificially unique digital assets that can be used in a variety of situations and, according to many, are set to revolutionise the digital world and mark a milestone in the evolution of markets in the so called Web 3.0. As objects of property, routed in the blockchain, NFTs promise to replace many institutions of the traditional legal order, including property and contracts in the way we are used to think of. The announced digital disruption will create a convergence in ownership that so far comparative legal scholars failed to observe in state legislation. Against this view, we propose a critical reassessment of tokens, by deconstructing NFTs as digital property and characterise them rather as objects in possession. We believe that, under a variety of use cases, possession better qualifies the relationship between the owner and the NFT and is consistent with a view of digital assets that are not dependent on a specific legal system, while allowing an acceptable degree of legal protection in case of interference with the owner’s prerogatives.
Objective : to answer the question whether the authors’ moral rights the in the digital environment correspond to their original purpose, and to determine the impact of the development of social networking platforms, artificial intelligence technologies and non-fungible tokens (NFT) on the transformed role and features of the protection of the author’s moral rights under modern conditions. Methods : the research is based on historical-legal, comparative-legal and formal-dogmatic methods. Legal institutions and legal practice on the issue of protection of the author’s moral rights are subjected to critical analysis. Results : the genesis and normative fixation of the author’s moral rights are investigated in historical retrospect. It is noted that at present the protection of these rights is insufficiently regulated at the international level, while national copyright law, for example, of continental European states, provides a sufficiently strong protection of the author’s moral rights; however, the effectiveness of the latter is weakening in the digital age. The paper analyzes the changing landscape of copyright relations caused by technological progress: in social networks, in the generation of works by artificial intelligence, and in the creation of digital works of art. The thesis is substantiated that the author’s moral rights are undesirable in the context of social platforms. The paper proposes solutions to the issues of authorship of works created by artificial intelligence, violation of author’s rights, and integrity in case of full or partial borrowing of a work to generate a new work by artificial intelligence. The role of NFT technologies in solving the problem of preserving the author’s moral rights is defined. Scientific novelty : the work fills a gap in research on the relationship between copyright and technological development. It identifies and evaluates the innovations in the purpose and content of the author’s moral rights, caused by the processes of digitalization, and attempts to solve the problem of the author’s rights compliance with technological progress. Practical significance : the obtained results may serve as a conceptual basis for further development and improvement of national legislation and international legal regulation in the field of copyright protection, transformation of the objectives, role and place of the author’s moral rights in the digital environment.
Mar 15, 2024·2024 2nd International Conference on Artificial Intelligence and Machine Learning Applications Theme: Healthcare and Internet of Things (AIMLA)
S. Bangaru Kamatchi, Prem Pavan Channa, Gudelli Pavan Sai
The music industry has experienced significant growth, primarily driven by digital streaming services. However, major platforms have centralized control, limiting artists’ autonomy and revenue. To address this, the emergence of Music NFT marketplaces represents a revolutionary shift. These platforms leverage blockchain to tokenize music, turning it into unique, tradable assets through NFTs (Non-Fungible Tokens). This allows artists to have direct interactions with fans, offer exclusive content, and establish new revenue streams. Music NFTs serve as certificates of ownership, providing proof of authenticity and making forgery challenging. Artists can choose platforms, mint and sell NFTs, and promote drops on preferred social media. Buyers acquire the original audio file and the chance to support artists. NFT owners can store collections in crypto wallets and decide to sell, with artists earning a share of subsequent sales. Music NFTs offer an alternative to streaming, providing fans a direct means to support artists, while artists strengthen connections with supporters and earn royalties from secondary sales.
The objective of this article is to evaluate countries’ approaches to the taxation of crypto staking by testing the consistency of current domestic rules and guidance against the technological substance of the same phenomenon. After the outline of the economics of crypto staking, the author provides evidence of the debate in tax literature and the regulatory landscape across selected countries. Subsequently, the research explores the technology features of staking and its fundamental variables of legal characterization, income qualification, and timing and value of income recognition. This way, the interdisciplinary methodology aims to outline a model of taxation reflecting the technological substance of crypto staking and test it against the current tax framework at the domestic level. The results of the analysis process show that the approach to the taxation of staking rewards does not ensure consistency with the technological substance in all of the selected countries. National tax authorities rely more on policy considerations aimed at maximizing revenue collection when developing guidance in the field than on the idea of coherent tax treatment in accordance with the technological substance and the legal characterization of the different types of staking activities. Tax & Technology, Blockchain, Cryptocurrencies, Proof-of-stake, Staking rewards, Direct staking, Indirect staking, Legal characterization, Income qualification, Time of income recognition
Purpose This paper aims to investigate optimal anti-counterfeiting strategies for non-fungible token (NFT) platforms in decentralized digital marketplaces. Using a game-theoretic model, it analyzes how verification policies shape interactions among platforms, genuine creators, counterfeiters and consumers. Addressing a theoretical gap, the study models the incentives and trade-offs platforms face when deciding whether and how much to verify product authenticity. It evaluates the impact of these decisions on consumer surplus and creator welfare, providing insights for platform operators and regulators seeking to balance profitability, authenticity and stakeholder interests. Design/methodology/approach A game-theoretic model examines strategic interactions among NFT platforms, genuine creators, counterfeiters and consumers across varying verification levels. The model incorporates dual sales channels (authentic and dubious), platform commissions and consumer heterogeneity in quality preference. By solving for subgame perfect equilibria, the analysis reveals how verification intensity influences counterfeiter entry, pricing and welfare outcomes. Comparative statics and equilibrium analysis provide managerial implications. The framework highlights the trade-offs platforms face in balancing verification costs with consumer trust and marketplace efficiency. Findings The study reveals counterintuitive results. First, the relationship between verification intensity and counterfeiter entry is non-monotonic – moderate verification can increase counterfeit activity by softening price competition between the dual channels. Second, stronger verification may reduce consumer surplus as price increases outweigh trust benefits. Third, the optimal verification level depends on verification costs and commission structures. Moderate verification often emerges as optimal, while excessive verification can harm both consumers and genuine creators. Research limitations/implications This study contributes to the literature on digital platform governance and anti-counterfeiting by introducing a formal game-theoretic model tailored to decentralized NFT marketplaces. It advances understanding of how verification strategies influence market structure and welfare outcomes in environments with limited enforcement. The findings challenge conventional views that stronger verification always benefits consumers and sellers, revealing nuanced trade-offs in decentralized platforms. These insights provide a foundation for future research on optimal platform design and regulation in blockchain-enabled, trust-sensitive digital ecosystems. Practical implications This paper offers actionable guidance for NFT platform managers in designing effective anti-counterfeiting strategies. It reveals that moderate verification – rather than maximal enforcement – is often optimal, even without cost constraints, as excessive verification can unintentionally reduce consumer surplus and original creator welfare. The findings highlight the importance of aligning verification intensity with platform commission structures. Regulators are also advised to consider incentive-compatible policies that promote trust while preserving market participation. These insights support more balanced and efficient governance in decentralized digital marketplaces. Social implications This study highlights the broader societal impact of anti-counterfeiting strategies in decentralized digital economies. It shows that well-intentioned verification efforts may unintentionally harm consumers by increasing prices and limiting access to authentic digital goods. The findings call for a more nuanced understanding of how policy and platform design affect consumer welfare, creator livelihoods and digital trust. By emphasizing the trade-offs between authenticity and accessibility, the study informs policymakers and platform designers about the importance of inclusive, efficient verification mechanisms that protect stakeholders without stifling innovation or participation in the rapidly evolving NFT and blockchain ecosystems. Originality/value This study fills a theoretical gap by modeling decentralized NFT marketplaces with limited enforcement and uncertainty. It is among the first to analyze anti-counterfeiting strategies in this context, offering practical guidance for platform operators and regulators. The findings enrich digital platform governance literature by highlighting nuanced trade-offs in verification strategies.
Abstract The emergence of large language models (LLMs) has made it increasingly difficult to protect and enforce intellectual property (IP) rights in a digital landscape where content can be easily accessed and utilized without clear authorization. First, we explain why LLMs make it uniquely difficult to protect and enforce IP, creating a ‘tragedy of the commons.’ Second, drawing on theories of polycentric governance, we argue that non-fungible tokens (NFTs) could be effective tools for addressing the complexities of digital IP rights. Third, we provide an illustrative case study that shows how NFTs can facilitate dispute resolution of IP on the blockchain.
NFT makers are creating NFTs integrated with IP that are being purchased for exorbitant amounts. On the flip side, NFT purchasers are buying up NFTs for these high prices because they may think they are buying the underlying rights. This "Money for Nothing" problem - taking its name from the Dire Straits song - is what this paper terms as the "IP-NFT" Conundrum that explains the basic misunderstanding NFT consumers have about the IP rights (or lack thereof) they are acquiring when they acquire NFTs. Part I of this paper will focus on an overview of NFTs and the lack of IP rights associated with NFTs, or the “IP-NFT Conundrum”. This section will include a discussion of how NFTs are being defined with respect to a series of trademark cases, copyright law and patents, which is covered in other literature as well as forthcoming papers from the author. Part II will then outline the current marketplace of NFT trading platforms and the “Money for Nothing” problem that exists where a mismatch or imbalance is created between consumer understanding of what they are wanting to purchase from a NFT and what is actually really being purchased. Part III will finally discuss potential solutions to the “Money for Nothing” IP-NFT Conundrum problem – e.g., NFTs embedded with smart contracts that automatically embed IP rights upon sale, stronger educational initiatives involving NFTs, or the creation of platforms (or integration of rules and policies on existing platforms) that will facilitate the ideal transfer of IP rights for NFT transactions.
The aim of this diploma thesis is to analyse the individual legal aspects of Non-Fungible Tokens (NFT) phenomenon in terms of current and upcoming legislation. The diploma thesis documents the technological aspects of this phenomenon and its legal specifics and then identifies and interprets the application of legal frameworks that currently affect its use. These include the legal qualification of NFT, aspects of consumer protection and aspects of copyright law. The text of the diploma thesis contains a theoretical assessment to the extent necessary for the purposes of further analysis of the phenomenon.
Farizah Mohamed Isa, Mardiah Hayati Abu Bakar, Sarah Munirah Abdullah, Mohd Shaufiq Abdul Latif
A Non-Fungible Token or an NFT is described as a digital certificate representing ownership of, or rights to a unique digital asset, where the ownership is recorded on a non-centralized blockchain (a digital ledger of transactions that is not owned by the state or authoritative bodies).Common examples of NFTs are usually digital art or artistic works, including photos, videos, audio files, and collectibles, and may extend to game items, tickets, and other digital assets.