Unlocking Royalties in the Digital Age: Art Collectors and Estates Embrace NFT Certification

In an era marked by the rapid digitization of creative assets and the emergence of web3 technologies, the art world is undergoing a profound transformation. Art collectors and estates are now at the forefront of a digital revolution, seeking innovative ways to protect their intellectual property and maximize royalty collection. At the heart of this transformation lies NFT (Non-Fungible Token) certification—a game-changer that promises to reshape the art market as we know it.

The Power of NFT Certification

NFTs, built on blockchain technology, have gained widespread attention for their ability to certify the authenticity and ownership of digital assets, including art. This revolutionary technology provides artists, collectors, and estates with a secure and transparent way to manage and monetize their creative works.

Empowering Artists and Estates

One of the most significant advantages of NFT certification is its impact on royalty collection. Traditionally, artists and estates have faced significant challenges in tracking and receiving royalties from secondary sales of their works. NFTs are changing the game by embedding smart contracts into digital art. These smart contracts automatically trigger royalty payments to creators and estates every time their art is resold, creating a consistent revenue stream and ensuring that artists are fairly compensated for the increasing value of their creations.

Transparency and Immutable Records

Another compelling aspect of NFT certification is the transparency it brings to the art market. Blockchain technology ensures that every transaction related to a particular artwork is recorded immutably on a decentralized ledger. This transparency not only builds trust but also facilitates provenance tracking, making it easier for collectors and estates to verify the authenticity and ownership history of an artwork.

Joining the Web3 Movement

Art collectors and estates are recognizing the potential of web3 as a powerful tool for ensuring the long-term value and protection of their assets. By embracing NFT certification, they are participating in a global ecosystem where digital assets can be securely bought, sold, and traded. This shift not only benefits creators but also enriches the entire art market by enhancing its liquidity and accessibility.

The Role of the International Copyright Organization

At the International Copyright Organization, we applaud the forward-thinking approach of art collectors and estates who are adopting NFT certification to safeguard their intellectual property and increase their royalties in the digital age. We are committed to supporting these initiatives and working collaboratively with all stakeholders to ensure that copyright protection remains at the forefront of the web3 revolution.

In conclusion, the adoption of NFT certification by art collectors and estates is a significant development in the world of intellectual property rights. It empowers creators, enhances transparency, and contributes to the evolution of a more equitable art market in the digital age. As the web3 movement continues to gain momentum, the International Copyright Organization remains dedicated to guiding creators, collectors, and estates on this transformative journey.

Famous Copyright Cases

The Associated Press vs. Fairey

Photograph: Mannie Garcia – 2006 (via The New York Times); Poster: Shephard Fairey – 2008 (via Wikipedia)

During President Obama’s first run for presidential election in 2008, Shephard Fairey (a well known street artist) created the Hope poster that quickly became a symbol for Obama’s campaign as it was unofficially endorsed.

The photograph on which Fairey allegedly based the design was revealed by the Associated Press in January 2009 as one shot by freelancer Mannie Garcia that was licensed to Associate Press exclusively. The Associated Press demanded compensation for the use of the photograph in Fairey’s work while Fairey’s defense was fair use as he claimed that his work did not reduce the value of the original photograph.

The outcome was a private settlement between the parties in January 2011 part of which included a split of the profits generated by the work. Garcia stated he was “so proud of the photograph and that Fairey did what he did artistically with it, and the effect it has had,” but still had a problem with the fact that Fairey took the image without permission and without credit for it’s originator.

Even tough this case was settled outside the court, it holds great significance as it created an interesting context around fair use and shed some light on this gray area. Surely Fairey’s work brought a lot more exposure to Garcia’s photograph that corresponds to more earnings that Garcia would not have access to without Fairey’s work. Estimating the influence of each party and determining the financial splits might not be an easy task especially when negotiated after the success. What we do learn from this case is that it is always better to get the consent of the original artist before incorporating their work into a new work of art and whatever the case, give credit where credit is due.

David Bowie/Freddie Mercury vs. Vanilla Ice

Queen – Under Pressure (Official Video)
Vanilla Ice – Ice Ice Baby (Official Music Video)

In 1991 Vanilla Ice releases Ice Ice Baby that became a massive hit but it didn’t take long for Queen and David Bowie’s lawyers to react as Vanilla Ice sampled a very distinctive melody without giving credit.

At first Vanilla Ice denied that the beat was sampled but later retracted his statement dismissing it as a joke, confessed to sampling and the case was settled privately out of court with Ice paying an undeclared sum of money and crediting Bowie/Queen on the track.

How Blockchain Copyright Works

What is Blockchain technology?

Blockchain Definition: Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a network. An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding).

The goal of blockchain is to allow digital information to be recorded and distributed, but not edited. In this way, a blockchain is the foundation for immutable ledgers, or records of transactions that cannot be altered, deleted, or destroyed.

How Copyright Works

Copyright Definition: A copyright is a type of intellectual property that gives its owner the exclusive right to copy, distribute, adapt, display, and perform a creative work, usually for a limited time. The creative work may be in a literary, artistic, educational, or musical form.

A copyright requires the recordation of three crucial information: the owners or authors of the copyright, the content or material to be copyrighted and a timestamp consisting of the date and time the copyright was created. The recordation of such information must be verified by an external authority acting as a witness agent and is usually the work of copyright offices, either country specific and backed by individual governmental authorities or international backed by independent authorities.

How Blockchain Changed The Copyright Process

Blockchain was first created in October 2008 and for the next decade has been constantly tested as the underlying decentralized technology that runs all cryptocurrencies. Today it is considered to be the proven technology that can be the bedrock of the worldwide record-keeping systems.

This inherent secure decentralized ledger qualities of the Blockchain make it the ideal platform to record copyright information and to offer so many benefits over more traditional copyright office services. Copyright registration processing times have fallen from an average of 3.6 months to literally 5 minutes while blockchain registrations are universally acknowledged by countries beyond the ones endorsing the Berne Convention.

While the International Copyright Organization is the leading global authority in blockchain copyright it continues to offer in parallel traditional copyright services acting as the independent witness agent and verification authority.