NFT under Copyright Law perspective

NFT is a non-fungible token — a digital asset registered on a blockchain attached to the NFT itself. This asset is created by a smart contract that executes on the blockchain itself with a unique authentication code.

Currently, digitizing the art work and converting it into NFT assets is a hot trend. In 2021, many NFT works were auctioned for huge amounts, such as Quantum by Kevin McCoy (1.47 million USD) or CryptoPunk by Larva Labs (11.7 million USD) millions of dollars). The biggest record is the work Everydays: the First 5,000 Days by Beeple, which sold for 69 million USD, holding the position as the most expensive NFT work in the world today.

Authors and book publishing are also stepping into the NFT path. We all know that literary works or books are protected by the Copyright Law, which recognizes the copyright of the author on the work. So , how will copyright law apply in NFT books?

Firstly, it is important to note that the Copyright Law distinguishes between non-physical work and the physical one. For example, for a painting, the author still retains copyright over the non-physical picture (making copies of that work is prohibited), even if the original painting has been sold. If the copyright is not transferred, the original work’s owner will not have the right to exploit it.

NFT is a certificate that identifies the property rights with the original digital work and registered on the blockchain, not the digital work. If we can make digital copies of the work unlimitedly, then the NFT has the advantage of ensuring that the digital work is original and no one can make the second original NFT. This also applies to publishing books as NFTs.

So who can publish the NFT book? With a new book presented in NFT form when it is completed, the author will be the publisher. For a pre-existing work in physical form, the original owner of the work will be the one who digitizes the work and authenticates it on the blockchain.

The creation of NFT books would not be considered an act that requires the permission of the copyright holder. Because NFT does not create a copy of the work, it is an attestation of ownership of a digital copy of the work.

In the laws of more than 40 countries that are part of the French “droit d’auteur” legal system, the author is also entitled to a right called the “droit de suite”, whereby each time the original of a work is franchised, the author will be entitled to a certain percentage of resale price. In the case of NFT books, the author will also receive a percentage of the resale price from the owner.

NFT will continue to exist and develop, perhaps even replace the current traditional form of buying and selling books.