NFT, Copyright; and Intellectual Property Commercialisation

Abstract

We have been awakened by another disruptiveness - NFT. Local awareness of the term ‘NFT’ went viral when Twitter CEO, Jack Dorsey, offered his first tweet for sale as an NFT (Non-Fungible Token). The tweet read - “just setting up my twttr,”. The tweet was first published on March 21, 2006. The tweet was sold for 1,630.58 ether, a cryptocurrency that is equivalent to $2.9 million based on ether's price at the time of sale. But Jack Dorsey was not the first. Artists like DJ 3LAU had generated more than US$11 million within 24 hours when he auctioned 33 NFTs to mark the third anniversary of his album Ultraviolet. The album featured ‘never heard before music, songs and art.’ Also, the US graphic designer Mike Winkelmann (Beeple) sold an NFT, entitled ‘Everyday: The First 5000 Days for US$69 million’ in a Christie’s auction that was purchased by Vignesh Sundaresan, a software engineer. The very idea of selling copyright works in a digital space and using the same to form a digital currency is disruptive. There is a dearth of scholarly written articles on the subject and recourse is often made to roadside articles on the subject. Many have speculated that NFT would lead to a paradigm shift in copyright law. It is thus foreseeable how many think that NFTs are a form of intellectual property (IP), but as shall be seen, this article shall show that NFT is not a form of IP but rather a form of commercialising IP. This article shall address the relationship between NFT and copyright, and proffer recommendations on a working relationship between Copyright Commissions and NFT Platforms. But first, what are NFTs?