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Digital Art as an Enhanced Asset
Digital art becomes an enhanced asset when it is copyrighted, and when the copyright is registered.
Digital Art Ownership: Clearing Up the Confusion Between NFTs and Copyright Law
Digital art, whether attached to a blockchain as an NFT or not, is an asset subject to copyright law. When created, digital art can be copyrighted, granting the creator certain automatic rights.
Registration Benefits
Registration of a copyright must be completed before the copyright owner can sue for infringement.
A successful infringement lawsuit entitles a registered copyright owner to recover damages, and attorneys fees, among other things. These benefits coupled with the bundle of rights granted to a copyright owner by section 106 of the U.S. Copyright Act elevate registered digital art to an enhanced asset.
The Bundle of Rights
Section 106 of the U.S. Copyright Act itemizes certain rights that a copyright owner has, the most important of which for digital artists is a reproduction right under section 106(1). That right would seem to mean that the copyright owner of digital art can (a) create multiple or limited copies, in many sizes, on fine art paper, canvas, acrylic, aluminum, glass, etc., (b) reproduce some copies to be limited editions with the artist’s signature, (c) reproduce the digital art on clothing such as T shirts, sweaters, and jackets, etc., and (d) reproduce the digital art on other physical mediums for advertising or other purposes. The reproductions could be under the direct control of the copyright owner or licensed to one or many parties.
Option to Create a Digital Art NFT
The creator of digital art could cause their digital art to be linked to a digital art NFT after that digital art had been properly registered with the Copyright Office. Then the creator could assign the copyright, per se, which would include all the “bundle of rights” to the purchaser of the NFT. However, the NFT platform that mints the NFT might have a provision in its terms of service agreement that grants it a nonexclusive, worldwide, irrevocable, perpetual, etc., license which would be a limitation on the enhancement unless waived.
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For a complete analysis of digital art NFTs see: NFTs-A Lawyer's/Digital Artist's Dilemma.
